Job ads rise 2% in December: Economy Roundup

The number of job advertisements listed in newspapers and on the internet increased by 2% for an eight consecutive month, according to the latest ANZ job ads series.

The number conflicts with a figure released by the Advantage Job Index yesterday, which stated job ads fell by 2.3% during the same month.

The ANZ figures show the number of job ads is now 27.4% higher than it was at this time last year, and that ads reached an average of 188,614 per week in December. However, the rise is smaller than the 3% gain recorded in November.

ANZ head of Australian macroeconomics, Katie Dean, said in a statement that the smaller rise is due to the fact businesses are cooling off on their hiring intention due to the November rate rise.

“November’s ‘surprise’ interest rate rise may have also weighed on newspaper job advertising, given heightened concerns over prospects for the labour intensive retail sector in the lead up to Christmas,” Dean said.

“Adverse weather may have also weighed on job advertising in December. In particular, the impact of heavy rains and the higher Australian dollar on tourism and hospitality in the Queensland economy may be important drivers of Queensland’s sharp 8.5% decline in newspaper job ads, the biggest fall of all the States.”

Dean also added ANZ expects the unemployment rate to drop from 5.2% to 5.1% when the figures are released this Thursday.

Trade surplus falls

Meanwhile, new figures from the ABS show the trade surplus fell by $70 million in October to a total of $2.2 billion.

Exports fell by $7 million to $24.4 billion, with non-rural goods up 2% and rural goods also up by 1%. Non-monetary gold fell by 21% and services credits fell by 1%.

Imports rose by 3% to $22.5 billion, while capital goods rose 8%, intermediate and other merchandise rose 4% and consumption goods rose by 1%. Service debits rose by $16 million.

New CEO for Perpetual

Fund manager Perpetual has appointed Chris Ryan as the company’s new managing director and chief executive.

Replacing David Deverall, Ryan will start on February 14. He has previously worked with HSBC, Fidelity International and ING Investment Management.

Meanwhile, Woodside Petroleum has said it has resumed operations at the Enfield oil field in Western Australia.

“Production from the Enfield oil field resumed on January 8,” company spokeswoman Laura Hammer told Reuters. The company had halted production due to gale force winds.

Shares lower on weak Wall Street leads

The Australian sharemarket has opened lower today following a weak lead on Wall Street.

The benchmark S&P/ASX200 index was down eight points or 0.17% to 4704.1 at 12.20 AEST, while the Australian dollar maintained its ground at US99c.

ANZ shares gained 0.1% to $22.98, while Commonwealth Bank shares rose 0.1% to $50.11. Westpac rose 0.1% to $22.99 as NAB gained 0.1% to $23.81.

Linc Energy updates on floods

Linc Energy has said its Chincilla plant in Queensland has managed to escape some damage from the devastating Queensland floods.

“The water across the site has now subsided and the teams have been busily pumping water from low lying areas and repairing roadways to create safe access around the site,” chief executive officer, Peter Bond told Reuters.

“The outlying areas are still water logged.”

Bond said staff have been brought to work via helicopter since roads have been closed before Christmas.

Euro drops to four-month low

The euro has fallen to a four-month low against the dollar due to ongoing fears regarding the European debt crisis.

“I think overall the path of least resistance is going to be the downside for the euro,” Andrew Robinson, currency market strategist for Saxo Capital Markets, told Reuters.

The euro stood at $US1.29, up just 0.1% from trading on Friday, but had already fallen to $US1.28.

The poor performance in Europe sent US stocks downwards, although investors remain optimistic that debt problems in Portugal should be fixed without the need for a bailout.

The Dow Jones Industrial Average fell 37.31 points, or 0.32%, to 11,637.45.