Australian job ads dip 0.5% in April, still strong overall

div classBodysc17zpet90 cdBBJodivpSYDNEY Reuters – Australian job advertisements dipped in April from multiyear highs, but still point to continued strong demand for labour that will likely soon drive unemployment to its lowest since the early 1970s.p

pMondays figures from Australia and New Zealand Banking Group Ltd showed total job ads fell 0.5 in April from March. Ads were still up 26.3 on a year earlier at 242,536 and more than 57 higher than February 2020, before the pandemic first struck.pdivdivdiv classBodysc17zpet90 cdBBJodiv

p“We expect strong labour demand to lead to solid employment gains in the coming months,” said David Plank, ANZs head of Australian economics. “We see the unemployment rate dropping well below 4 in the second half of 2022, which should reinforce the momentum toward higher wages growth.”p

pThe jobless rate has surprised by falling sharply over the past year to reach 4.0 and a further drop is expected in April.p

pWith the economy almost at full employment and inflation running hot, the Reserve Bank of Australia RBA is expected to hike interest rates from record lows of 0.1 at either its May of June policy meetings.p

pThe banks board meets on Tuesday and speculation is high it will lift rates to 0.25 in the start of a tightening cycle that investors wager could see rates at 2.5 by the end of the year.