Job ads fall 2.1% in September, Shares move higher: Midday Roundup

The number of job ads published during September fell for a third consecutive month, according to the latest data from ANZ.

The number of ads published on both the internet and in major publications fell by 2.1%. Over the past year, ads are down by 3.1%.

“Moderating job advertising points towards a further softening in employment growth in the months ahead and a modest rise in the unemployment rate,” ANZ head of Australian economics and property research Ivan Colhoun said in a statement.

“To date, the weakening trend for job advertising is more like the 1995-96 experience, rather than the sharp slowdown during the global financial crisis in 2008-09, or even the more significant slowdown experienced in 2000-01.”

Colhoun says the figure gives the Reserve Bank enough scope to reduce the current cash rate.

“In line with a rising unemployment rate, wages and underlying inflation pressures are likely to moderate,” he said. “Accordingly, there is scope for the RBA to reduce interest rates a little as insurance against weaker than expected growth outcomes and even higher unemployment.”

Internet job ads are down 2.2% during the month, but are still 4% higher than they were at the same point last year. Newspaper ads were flat, and down by 12.8% over the year.

Shares higher after flat Wall Street lead

The Australian sharemarket has opened slightly higher this morning after a weak lead from Wall Street late last week, bolstering hopes that the past month’s volatility may be over as European leaders seek an end to its debt crisis.

The benchmark S&P/ASX200 index was up 42 points or 1% to 4205.7 at 12.10 AEST, while the Australian dollar has fallen slightly to $US0.97c.

AMP shares rose 0.6% to $4.16, while Commonwealth Bank shares rose 0.54% to $46.50. NAB shares rose 0.97% to $23.99 as Westpac shares rose 1.16% to $3.05.

ACCC targets airports

The Australian Competition and Consumer Commission has written in a submission to the Productivity Commission that the airport sector needs to amend its ways with regard to setting prices for services.

“The ACCC is concerned that some airports may have used their market power to achieve monopoly profits in services provided to airlines and in car parking,” chairman Rod Sims said in a statement.

“The ACCC sees the use of market power contributing to higher prices or lower quality services. This not only directly affects airlines and passengers that use the airports, but can have flow-on effects in related markets such as tourism.”

Fairfax to sell radio assets

Media giant Fairfax will sell its regional radio assets to Grant Broadcasters, the company has announced, months after the company said it was considering such a move.

In a statement, Fairfax said KPMG Corporate Finance will continue to help with the sales process.

“Any decision to sell the metropolitan radio assets will be subject to achieving an acceptable price and consideration of all options to maximise value.”