ANZ New Zealand job ads fall sequentially in July

ANZ New Zealand job ads dropped in July. Job ads dropped 1 percent sequentially in seasonally adjusted terms off a record high. Looking through the monthly noise, job ads growth has decelerated to just 0.5 percent sequentially. That moderation is seen in annual job growth easing from a peak of 19.6 percent in January to 12.2 percent in July.

With companies giving up on advertising and looking at alternative means, it is unsure if labor demand is coming off the boil or if workers are simply becoming too difficult to find. With skilled staff the main problem holding back firms, it is looking more like the latter. There is not a pool of suitable labor for most companies in spite of the jobless rate being 4.8 percent, stated ANZ.

This is a classic late-cycle challenge and signals pressure for wage growth to rise. In spite of Auckland job ads falling for three continuous months, it continues to be the strongest of the three main centres in annual growth terms, but is now lagging the national average.

Wellington and Canterbury job ads also dropped in July. The less-urbanised regions are still seeing stronger annual job ad growth than any of the three main centres. The construction, utilities, manufacturing and transport sectors continue to be the main drivers of total job ads growth. The service sector is also adding strongly, along with retail, tourism and government, noted ANZ.