Vacancies Rise To Record
UNEMPLOYMENT is set to fall further with the number of job vacancies rising to record levels, fuelling speculation of yet another interest rate rise.
National job vacancies in the 3 months to August rose 2.9 per cent, seasonally adjusted, according to the Australian Bureau of Statistics.
Job vacancies rose by 11.9 per cent in the year to August.
CommSec equities economist Martin Arnold stated with job vacancies now at a record high, the unemployment rate was set to fall below four per cent - from its present four.three per cent - as company conditions encouraged bosses to seek a lot more employees.
"The Australian economic climate is recording strong development and business situations are virtually as great as they get," he mentioned.
The strength of the economy led a frustrated John Howard to say the public was failing to give the government credit for financial management.
"I feel there is a view in the neighborhood ... possibly a considerable quantity that, for somehow or yet another, our financial strength and our economic stability and development is occurring naturally, that the economic climate is on autopilot," the Prime Minister told a public forum at Ocean Grove on the Victorian coast yesterday.
He said this was one particular of the motives why the government was faring so poorly in the public opinion polls: "I believe individuals are starting to take the Australian economy for granted."
Seasonally-adjusted job vacancies totalled 172,700 in the three months to August.
Mr Arnold mentioned there were fewer than three unemployed people for every single vacant job, the lowest level on record.
Organization services has been one of the strongest development places, with 45,200 vacancies, 28.4 per cent far more than a year ago.
The quantity of positions vacant in the communications industry has a lot more than doubled to 2800 in the very same period.
There was powerful demand for labour in the construction, retail trade and transport industries.
Places that appear to be less desperate for staff include hospitality, recreation and individual services.
The public sector is continuing to expand, with the quantity of vacant jobs 11.eight per cent increased than a year ago.
In the year to August, job vacancies in the boom state of Western Australia had been up by 31.8 per cent, unadjusted, followed by the ACT, which was up 31 per cent.
Only Queensland had a decline, with year-on-year vacancies down 3.three per cent.
Matthew Johnson, the senior economist at broker ICAP, said the rise in jobs vacancies must provide employment growth of far more than two per cent.
"This signifies that unemployment will almost certainly fall reduce, and that every person from the Reserve Bank down will continue to fret about wage-push inflation," he stated.
High job vacancies and low unemployment is a traditional recipe for inflation, with a limit to how numerous positions can be filled.
There has, so far, been no evidence of wage inflation, with the common expense of labour rising broadly in line with charges in the economy. The subsequent inflation figures are published on October 24.
UBS chief economist Scott Haslem mentioned the development in job vacancies would contribute to greater inflation in the final months of 2007 for more details visit site. He predicted the Reserve Bank would raise interest prices in February 2008 to quit inflation going above the RBA's three per cent target range.
Nonetheless Mr Arnold mentioned the increase in labour provide, coming from skilled migration, would not produce wages pressures.