There are some positive signs for Australia’s jobs market as new data from the Australian Bureau of Statistics (ABS) reveals a slowdown in COVID-19 job losses.

The ABS has been collecting payroll and wages data in Australia as part of its effort to shed some light on the impact of COVID-19 on people and businesses across the country.

What the numbers say

According to the ABS, total payroll jobs fell by 7.3% between 14 March 2020 and 2 May 2020. In the same period, total wages paid decreased by 5.4% compared to an 8.2% drop in the ABS’ previous report, largely propped up by the JobKeeper payment. 

According to March unemployment data, some 13 million Australians were employed in mid-March. So, this reported 7.3% fall equates to around 950,000 job losses over the 7-week period.

The hardest-hit states were Victoria and New South Wales, where falls in job numbers were around 8.4% and 7.7%, respectively, over the 7-week period. In terms of wages, Western Australian fared the worst with a 7% fall in total wages, while Victoria wasn’t far behind with a 6.7% decrease.

At an industry level, the accommodation and food services industry had lost around a third of payroll jobs by the week ending 11 April. A subsequent increase in jobs saw this reduce to around 27.1% by the week ending 2 May.

Similar improvement has been seen in the arts and recreation services industry, where a previous fall of 27% is now a (still significant) 19% slump.

Tentative signs of improvement

Commenting on this new data, Bjorn Jarvis, Head of Labour Statistics at the ABS, said: “The latest data shows a further slowing in the fall in COVID-19 job losses between mid-April and early May.”

“The week-to-week changes are much smaller than they were early in the COVID-19 period. The decrease in the number of jobs in the week ending 2 May was 1.1 per cent, which was only slightly larger than the 0.9 per cent increase in the week ending 25 April,” Mr Jarvis added.

What does this mean for ASX shares?

Over this 7-week period, the S&P/ASX 200 Index (ASX: XJO) initially fell to a bottom on 23 March before emerging out of its bear market and marching higher (albeit with many bumps along the way):

The ASX 200 has continued to climb in the interim, just yesterday jumping 1.81% to close at 5,560 points, buoyed by COVID-19 vaccine hopes.

As the economy wakes from hibernation, the effects of COVID-19 and the associated restrictions will begin to emerge through data points like the ones mentioned above. Generally speaking, the share market reflects the conditions of local and global economies – or at least perceived conditions and sentiment – for which employment and wages certainly play a part.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is on course to end its winning streak on Wednesday. In late morning trade the benchmark index is down 0.3% to 5,543.3 points.

Four shares that are falling more than most today are listed below. Here’s why they are sinking lower:

The AP Eagers Ltd (ASX: APE) share price is down 3% to $5.44. The catalyst for this decline appears to have been a broker note out of Credit Suisse. According to the note, the broker has downgraded AP Eagers’ shares to a neutral rating and cut the price target on them to $6.45. The broker made the move on valuation grounds after a strong recovery in its share price over the last couple of months. It also expects a sharp decline in profits this year.

The Lendlease Group (ASX: LLC) share price has fallen 3.5% to $11.26. This decline also appears to have been driven by a broker note. Although analysts at Ord Minnett have retained their buy rating on the property company’s shares, they have cut their price target down by a third to $14.00. Ord Minnett believes the next 12 months could be difficult, but the longer term looks positive.

The Pushpay Holdings Ltd (ASX: PPH) share price has dropped almost 2.5% to $6.65. This appears to have been driven by profit taking after the donor management platform provider’s shares rocketed to a record high this week. Investors have been buying Pushpay’s shares following the release of a strong full year result earlier this month.

The ResMed Inc. (ASX: RMD) share price is down 2% to $24.84. This follows a similar pullback in the medical device company’s U.S. listed shares overnight. Investors may be concerned that demand for its ventilators will decline if a COVID-19 vaccine is successfully developed in the coming months.

More reading

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• Will these ASX car dealers bounce back after COVID-19?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Key ASX shares in the wine and dairy sector could be in the firing line as trade tensions look to escalate between Australia and China. A recent article from Bloomberg reports that China is considering targeting more Australian exports, following calls into an independent inquiry into the coronavirus pandemic.

Here are the latest developments on trade tensions and the key stocks that could be impacted.

Escalating trade tensions

According to the article, China is considering enforcing further trade barriers and tariffs on Australian imports, including wine and dairy products. The article states that Chinese officials have listed potential goods from Australia that could be subject to stricter quality checks and tariffs. It is also possible that China could encourage a consumer boycott of Australian products, however a formal stance has not been acknowledged.  

The speculation of further economic retaliation follows China’s action to block meat imports from 4 Australian slaughterhouses and the enforcement of an 80% tariff on Australian barley on Monday. Calls by the Australian Government for an independent inquiry into the coronavirus pandemic are thought to have fuelled economic retaliation from the Chinese government.

Which ASX shares are in the firing line?

A2 Milk Company Ltd (ASX: A2M) is one of the few shares on the ASX that has managed to withstand the turmoil caused by the coronavirus pandemic. Despite the company’s resilience thus far, sanctions and trade restrictions on its products to China could cause major damage.

The infant formula company relies heavily on consumer demand from China to fuel revenue growth. Currently, a2 Milk reports it has a 6.4% share in the lucrative infant formula market in China and the company recently spent NZ$200 million of its marketing budget on ads in China.

Treasury Wine Estates Ltd (ASX:TWE) is another company with heavy exposure to China. Australia is the 5th largest exporter of wine in the world, with China accounting for the majority of the volume. The operations of Treasury Wine reflects the wine industry’s reliance on China, with the company generating more than 40% of its total profits from Asia. The company’s prestigious and luxury brands, such as Penfolds, are highly popular in the Chinese market and offer better profitability margins.

Foolish takeaway

China is Australia’s most important trading partner – Chinese consumers and businesses are a reliable source of demand for many Australian goods and services. As China emerges from the coronavirus pandemic, demand will play an important role in the recovery of Australia’s economy.

More reading

• 3 stellar ASX growth shares to buy right now
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• Are these China-exposed ASX shares in danger in 2020?
• 3 top ASX shares to buy now and hold for 10 years

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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