The number of job advertisements has fallen for the first time in three months in a sign that a full recovery may still be some time off.
According to the ANZ job advertisement series released yesterday, the total number of jobs advertised in major metropolitan newspapers and on the internet fell by 1.7 per cent in October to a weekly average of 133,709 per week.
Total job advertisements are now 6.8 per cent higher than their cyclical low point in July, but 42.3 per cent lower than 12 months earlier.
Acting ANZ chief economist Warren Hogan said the results showed the Australian economy was still vulnerable to setbacks.
Mr Hogan went on to caution against a swift rise in interest rates.
“These results suggest that the economy remains soft and is only at an early stage of recovery,” Mr Hogan said.
“While some normalisation of official interest rates appears warranted as the economy continues to recover, we would caution against a rapid increase in rates over the near term.”
Mr Hogan said he did not expect the Reserve Bank to raise rates again when it meets next month.
“If the economic recovery continues into the New Year, there may be further adjustments to rates early in 2010,” he said.