Job ads jumped as Omicron wave receded

The ANZ job advertisement series jumped 8.4 per cent in February to be 31.5 per cent higher than a year earlier.

"This supports our view that labour demand will continue to rise and competition for workers intensify," ANZ senior economist Catherine Birch said.

ANZ is now forecasting the unemployment rate falling to the "low threes" by late 2022.

Reserve Bank of Australia governor Philip Lowe confirmed his commitment to driving the economy to full employment by keeping interest rates low for as long as possible.

The RBA, and Treasury, expect the unemployment rate will fall below four per cent later this year and stay there, something that hasn't been achieved in some 50 years. It was 4.2 per cent in January.

Meanwhile, Australia's service sector businesses grew strongly in February, building on the gains seen over the December-January period.

The Australian Industry Group performance of services index rose by 3.8 points in February to 60, to stand well above the 50-point mark that separates expansion from contraction.

Ai Group chief executive Innes Willox said sales, employment and new orders all grew strongly in February.

He said prices of inputs and wages were up in the month, but not as dramatically as in the manufacturing and construction sectors, while selling prices remained at a level that suggests there was a capacity to recover a proportion of cost increases.

Retail trade and hospitality, and health and education sectors proved the strongest performers in the month, while logistics services, personal, and business and property services sectors also improved.

"With solid growth and a tight labour market, staff shortages and difficulties filling positions requiring skilled staff dominate concerns, while supply disruptions are also presenting more than a few headaches," Mr Willox said.

The Australian Institute of Petroleum will also release its weekly report on petrol prices on Monday.

Petrol prices have struck record highs in recent weeks and look set to go even higher as a flow-on from Russia's invasion of Ukraine, which has forced up global oil prices.

This will feed into already raging inflation, which has prompted speculation of a rise in the RBA's cash rate as early as June.

Following last week's monthly RBA board meeting, Dr Lowe kept to the script of remaining patient before lifting the cash rate from a record low 0.1 per cent.

But he did say the Ukrainian invasion is a major source of uncertainty.

Australian Associated Press