AUSTRALIAN PULSE POINTS – PART 2
There is little doubt that our working environment is changing. We are seeing fewer full-time jobs; more part-time work and less wage growth. More are also working a second job to help make ends meet.
A generation ago, there were four full-time jobs to one part-time position. Today, that ratio is 2 to 1 and we believe will head to parity sometime in the next decade.
Wages, in recent years, have been struggling to keep up with CPI inflation, and are really falling behind everyday costs. We think this is a new paradigm and not something ‘abnormal’ that will soon return back to the previous trend.
Lots going on here – high underemployment and technological change, to name just two – so in short, we are unlikely to see strong generic wage growth any time soon.
So now, more than ever, local job creation is increasingly important for future property performance. So, too, is local household income. Higher paid work can translate to sustainable increases in property values and weekly rent.
The interplay between job creation and the higher wages is what we call a pulse point.
Our new report outlines where such areas are most likely to occur across Australia over the next five years.
To get a copy of our new Australian Pulse Point report. Go here.
Keen to hear your thoughts.
Until next time,
Not all Missives are posted on our website. Sign up and we’ll deliver every Matusik Missive direct to your inbox. Go here to subscribe. It’s free!