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Job ads rise on back of building boom

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Fuseworks Media
Fuseworks Media

ANZ's latest job advertising data suggests demand for employment is strengthening as the housing and construction sectors boom around the country.

Seasonally adjusted job ads lifted 0.5 percent in June, and are accelerating, running 9.1 percent higher than a year ago (3-month average). The June figures are the fifth successive rise in a row.

"Strong job ads confirm that dairy sector woes and the Canterbury rebuild slowdown are being outgunned by strong activity elsewhere. Job ads are rising around the country - except Canterbury - to meet demand, and particularly for new housing and infrastructure," said Cameron Bagrie, ANZ Chief Economist.

"The uniformity across the regions signals an economic expansion that is flowing strongly into job creation. It's merely a question of time before that puts upward pressure on wages."

Mr Bagrie said capacity bottlenecks and finding skilled staff are going to become greater challenges for businesses to manage over the coming year. The economy does not look to be in need of further interest rate stimulus at present.

ANZ job advertising data highlights:

- Total job advertising rose 0.5 percent in June (seasonally adjusted), its fifth consecutive increase. On a rolling 3-month average basis, job ads are up 9.1 percent compared to a year ago, with growth accelerating.

- Internet job advertising lifted 1.0 percent in June (sa), while newspaper job advertising, which is much more volatile, fell 6.0 percent month-on-month (sa) after rising a similar amount in May.

- Auckland job ads are 11.8 percent higher than a year ago, and Wellington job ads have joined the party at 7.1 percent year-on-year. Canterbury is experiencing a unique cycle, with job ads 9.3 percent lower than a year ago (3-month average) as the earthquake rebuild gradually recedes from highs.

- Three regions are battling it out for strongest annual growth in the rural division: Otago (16.7 percent), Manawatu (15.6 percent) and - surprisingly - the Waikato (14.7 percent). Hawke's Bay was no slouch either, jumping back into double digits (12.2 percent year-on-year).

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