The ANZ New Zealand job advertisement series, which sums newspaper and internet ads, fell 2.7 percent in January (sa), on top of a 2.6 percent fall the previous month. The seasonally adjusted series has fallen by 2.5 percent or more in four of the last five months.

The monthly fall was driven by a 4.9 percent fall in internet listings, partly offset by a 7.7 percent rise in newspaper advertising (both sa). Our "composite" total, which gives a heavier weighting to newspaper ads and down-weights internet ads, resulting in a closer (inverted) indicator for unemployment, lifted 1.6 percent (sa).

Our 3-month average "composite" job ads series has been steadily dropping for five months. It suggests there is little improvement in the unemployment rate left in the pipeline in coming months.

On a regional basis, Wellington total ads (unweighted sum) were the strongest, rising 5.6 percent. Christchurch was flat, and Auckland total ads fell 4.2 percent.

Our unemployment direction index, which aggregates a range of monthly labour market indicators including job ads, is still on the right side of the ledger (below zero), but is rising, suggesting improvements in the labour market are running out of steam.