Jobs figures prove retail sector is very much alive
Retail, which employs more than a 10th of Australians with jobs, added just over 34,000 jobs in the three months to May, according to data from the Australian Bureau of Statistics.
This has coincided with a 3.1 per cent rise in retail turnover in April, seasonally adjusted, compared with a year earlier.
Listed retailers have enjoyed strong performances on the stockmarket this financial year. JB Hi-Fi has surged 76.9 per cent, while Breville has jumped 67.4 per cent.
Supermarket giants Wesfarmers and Woolworths also had high returns, up 27.8 per cent and 20.6 per cent respectively.
A growth in consumption items sales from small businesses and non-listed companies may provide further insight into the jump in retail jobs, said Citi economist Josh Williamson.
"In real terms, sales in the year to March were stronger for durable items like vehicles (up 17 per cent), furnishings and house equipment (up 4.1 per cent) and service items such as health (7.1 per cent), education (up 2.8 per cent), insurance and finance (up 3.4 per cent), communications (up 2.6 per cent) and recreation and culture (up 0.8 per cent)," Mr Williamson said.
Healthcare was the other sector that performed strongly, adding 43,000 jobs in the year to May.
Overall, the Australian economy added 127,000 jobs over the period, an increase of 1.1 per cent.
In yet another sign the mining boom is nearing its end, the sector shed almost 16,000 jobs in the year to May, according to the ABS.
"Consistent with the more advanced stage of the mining investment cycle in WA than in Queensland, mining employment in WA fell noticeably over the past year but has held up in Queensland," ANZ economist Justin Fabo said.
Investors can take some comfort in the falling Australian dollar as companies heavily exposed to overseas markets and prices, such as the big miners, enjoy a rise in commodity prices.
AMP Capital chief economist Shane Oliver said the Aussie dollar's fall to US92¢ represented a 10 per cent drop from last year's average cross rates, but this could translate as a 3 per cent profit increase for some local companies.
"It won't surprise me if we see some earnings upgrades for companies with overseas exposure," Dr Oliver said.
Meanwhile, the Australian SPI Futures market is pointing to a sluggish start to the week, down 33 points, or 0.7 per cent.
Australian shares finished lower last week, down 1.1 per cent, after US Federal Reserve chairman Ben Bernanke outlined the central bank's plan to end quantitative easing, which has been propping up financial markets and the Australian dollar. With AAP
Frequently Asked Questions about this Article…
Recent ABS labour force data show retail is far from dying — the sector added 47,000 jobs in the year to May and employs more than a tenth of Australians with jobs. In the three months to May alone retail added just over 34,000 positions, signalling solid employment momentum in the retail sector.
Retail turnover was up 3.1% in April year‑on‑year (seasonally adjusted). Rising retail turnover is a key indicator of consumer demand and can support earnings for retailers and related businesses, which is useful for investors watching retail revenue and profitability trends.
Several listed retailers have posted strong returns: JB Hi‑Fi surged 76.9% and Breville jumped 67.4% this financial year, while supermarket giants Wesfarmers and Woolworths returned about 27.8% and 20.6% respectively — useful reference points for investors tracking retail stock performance.
Yes. Citi economist Josh Williamson noted growth in consumption items sales from small businesses and non‑listed firms may help explain the retail jobs jump. He highlighted stronger real sales for durable goods (vehicles up 17%), furnishings (up 4.1%) and several services categories, which can support hiring outside big listed chains.
Healthcare was a standout, adding 43,000 jobs in the year to May. Overall the Australian economy added 127,000 jobs (a 1.1% increase). By contrast the mining sector shed almost 16,000 jobs over the same period, reflecting a change in the mining investment cycle.
AMP Capital’s Shane Oliver noted the Aussie dollar fell to about US$0.92 — roughly a 10% drop from last year’s average — which could translate into around a 3% profit boost for some local companies with overseas exposure. That currency boost can support earnings upgrades for exporters and multinational‑exposed firms.
The Australian SPI futures were pointing to a sluggish start, down 33 points (about 0.7%), and Australian shares finished the prior week down 1.1% after US Fed chair Ben Bernanke outlined plans to end quantitative easing. Investors should watch how global monetary policy shifts and local economic data interact with market sentiment.
Yes. ANZ economist Justin Fabo said mining employment fell noticeably in Western Australia while holding up in Queensland. Regional differences in mining activity can affect local labour markets and the performance of mining companies with concentrated operations.
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