Australia’s job ads dropped in May for second consecutive month

According to data from ANZ Banking Group and job search website Indeed, job vacancies advertised in Australia decreased for the second month in May. This could suggest a gradual cooling of the country's labor market. Nevertheless, the number of job ads still significantly exceeds that seen before the COVID-19 pandemic.

In May, job offers in Australia fell by 1.2%, following a 0.3% decline in April. Compared to last year, the figure decreased by 5.7%, yet remained 13.6% higher than pre-pandemic levels.

ANZ analyst Aaron Luk says the country's labor market remains tight, with steady growth in employment and low unemployment. Last month, the Reserve Bank of Australia (RBA) cut interest rates to a two-year low as the slowdown in inflation gave the opportunity to counter growing risks in global trade. The central bank also signaled its readiness to ease policy further in the coming months, noting the stability of the labor market.

The RBA predicts the unemployment rate to go up a bit from the current 4.1% to 4.3% by the end of 2025.