14 Jan 2013

Australian economy continues to weaken

10:15 pm on 14 January 2013

Competition for jobs in Australia has become a lot tougher, with new figures showing that the economy is weakening.

The ANZ Job Advertisement series shows the number of positions advertised fell by 3.8% in December last year.

It was the tenth straight month of declines and means job advertisements were down 16% in last year compared with 2011, the ABC reports.

Justin Fabo, ANZ's head of Australian Economics, Corporate and Commercial, says unemployment is set to climb.

"Our forecast has got the unemployment rate heading to around 5.75% sometime later this year."

A separate report on inflation by TD Securities and the Melbourne Institute show apart from a seasonal rise in petrol, holiday accommodation and travel, prices remained subdued in December.

Owner-occupied home loans are also on the decline, falling by 0.5% in November.