Rise in job ads in Australian media seen as sign of economic revival

Job advertisements in Australia have for the first time in 16 months registered an increase which some analysts believe is a sign of a revival of the economy. Job advertisements in newspapers rose by 5.5 per cent and internet job ads rose 4 per cent even as employment minister Julia Gillard predicted a worsening of the employment scenario which would be reflected in the figures to be released later this week.

Gillard said that though positions vacant advertisements have shown an increase, she expected the unemployment rate to rise from the current 5.8 per cent. She added that business investment remained weak in Australia and with export income down, Australia had to engage in economic stimulus which is timely and targeted and that was what the government was doing.

Prime minister Kevin Rudd has seized on the job advertisements growth as a vindication of the government's stimulus package claiming that job losses would have been much higher without the package. He added that if the strategy advocated by those opposed to the measures been implemented Australian economy would have been in the depths of recession and with unemployment 'going through the roof'.

According to analysts the results seem to suggest that hiring was picking up from the depressed levels.

He however, they caution that a recovery in the labour marked remained some way off and unemployment would peak at 6.75 per cent early next year.

They say there is no need for the Reserve Bank of Australia to lift interest rates towards a 'neutral' rate of 5 per cent.