SYDNEY: Job vacancies in Australia fell sharply in the three months to May, a second quarter of steep declines that could augur poorly for labour demand, government data showed on 27 June.

The Australian Bureau of Statistics reported total job vacancies fell 7.3 per cent to 138,900 in seasonally adjusted terms in the three months to end May. That followed a 10 per cent drop the previous quarter and left vacancies down 19 per cent on the same period of 2012.

The weakness stands somewhat at odds with the official labour report that showed jobs gains of almost 100,000 in the five months to end May.

Vacancies in the private sector fell 7.9 per cent in the quarter to 127,700, to be down 18.5 per cent on the year.

Job vacancies in the public sector stayed at a low 11,100 having previously declined for six quarters in a row. Vacancies were down almost 28 per cent on a year earlier as federal and state governments pushed through spending cuts as part of tough fiscal plans.

Analysts value the vacancies series as it has proved a reliable leading indicator of labour demand and turning points in employment.

(Reuters)