Job ads rise 6% during December: Economy Roundup

The number of job advertisements published in newspapers and on the internet has climbed 6% during December in a second consecutive rise, according to the latest ANZ survey.

The total number of job ads rose to a weekly average of 149,063 ads – the biggest increase since May 2007. The number of newspaper ads rose 11.6%, with ads on the internet growing 5.6%.

In December, newspaper job ads were 9.8% lower than one year ago, compared to 21.1% lower in November. The biggest increase was in the Northern Territory with a 62% rise, followed by New South Wales with a 13.9% increase.

The number of internet job ads grew by 5.6% to an average of 138.432 per week, but still remained 24% lower than 12 months earlier. ANZ acting chief economist Warren Hogan said the jobs advertisement market has now passed its low point.

“This is already translating into employment growth and helping to keep the unemployment rate relatively stable, despite accelerating population and labour force growth,” he said in a statement.

“In the near-term, the forward indicators appear positive for some solid employment growth in December and over the summer months, although probably at a slower pace than seen in the past three months.”

Meanwhile, the Government may be considering overhauling the capital gains tax concessions system in order to simplify business tax, reports in the Australian Financial Review state.

The reports come as the Government is currently looking over the Henry Review report, which is believed to recommend scrapping capital gains tax discounts for assets held for over 12 months.

The report itself will focus on developing a more simplified tax system, including the possible elimination of simple tax returns.

Shares higher after negative Wall Street lead

The Australian sharemarket has opened slightly higher today despite negative leads from the US, where worse-than-expected job data has put a dampener on the hopes for a speedy recovery.

The benchmark S&P/ASX200 index was up 31 points or 0.63% to 4943.3 at 12.05 AEST, while the Australian dollar also gained ground from US91c to US92c.

Commonwealth Bank shares were up 0.7% to $56.58, while ANZ grew by 0.8% to $22.43. Westpac rose 0.6% to $25.29, as NAB also gained 0.9% to $27.14.

CBH Resources has now received a $148 million takeover offer from zinc metal producer Nyrstar, with the offer put forward at 13.5cents per share.

“Nyrstar NV presented the company with a conditional, confidential and incomplete proposal which could lead to a change of control transaction,” CBH said in a statement today. However, CBH shares have fallen 3.44% to 14 cents this morning after this news was announced.

Also in the mining sector, Santos is apparently in talks discussing the possibility of selling its equity stake in the Gladstone liquefied natural gas export project.

The company, the nation’s third largest oil and gas manufacturer, told Reuters today it is now speaking with a number of Asian buyers about a potential sales deal.

Business leaders after foreign tax clarification

According to reports in the Sydney Morning Herald, the Australia Japan Business Cooperation Committee has sent a letter to Federal Treasurer Wayne Swan in order to resolve uncertainties created by draft tax rulings which could cause foreign investors to delay support for projects.

The letter comes after the Australian Taxation Office attempted to charge equity firm TPG a $452 million fee for unpaid tax after floating department store Myer on the ASX.

As reported in the Australian Financial Review, Qantas still intends to increase its stake in Jetstar Pacific, despite an ongoing investigation in Vietnam regarding two of the company’s employees.

A source has said the company still intends to lift its stake despite the setback. It has the option to increase its stake from 27% to 30% by mid-year.

Meanwhile, Westpac has sold its 24.55% stake in North Queensland Airports to Auckland International Airport for $132.8 million.

“Since indicating in March 2009 that we would pursue opportunistic but carefully selected step-outs, we’ve looked at a range of opportunities to drive synergies and volume for our core business at Auckland,” Auckland Airport chief executive Simon Moutter said.

“New Zealand has underperformed against Australia in gaining a share of Asian tourism, so we have decided to take a position in the Australian market in an effort to get better connected and lift our market share.”