16 Sep 2016

Job ads rise for the seventh month in a row

8:39 pm on 16 September 2016

Job advertising is growing at its strongest rate in more than a year as a solid economy boosts demand, a survey has found.

Consumer confidence, meanwhile, has risen to its highest level for the year.

The ANZ Job Ads index climbed a seasonally adjusted 3.1 percent in August - the seventh month in a row it has risen.

Job ads posted on the internet picked up 2 percent, while the more volatile newspaper ads rebounded 22 percent.

Most regions had strong growth, led by Auckland and Wellington, but Canterbury has fallen.

ANZ senior economist Sharon Zollner said the construction and services sectors were driving the labour market and keeping a lid on unemployment.

"This would suggest the unemployment rate's going to continue to trend down.

"The strong growth we have seen in labour supply has meant that has happened more slowly, but it is happening, and we would expect that to continue."

Employment demand was strengthening but, as yet, had not translated into wage pressures, she said.

Read the full research report (PDF, 163KB)

A separate survey found consumer confidence had risen to its highest level for the year, driven by the strong housing market, the rebound in dairy prices and growing optimism about the long-term economic outlook.

The ANZ-Roy Morgan consumer confidence index rose four percentage points to 121 in August from the month before, the strongest level since January.

ANZ chief economist Cameron Bagrie said the improvement was no surprise given the strength in house prices and pick-up in the dairy sector.

He said the high New Zealand dollar was also keeping a lid on import prices, which was making consumers more willing to buy big-ticket items such as appliances and cars.

Mr Bagrie said more respondents said they were better off than a year ago, and there was a solid jump in those expecting to be better off in 12 months.

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