Fantastic jobs report by Indeed. Unemployment is projected to increase in 2024 and the job vacancy rate for many sectors remains high.
The concern that welfare programs like jobseeker could disincentivize employment is a topic of debate in Australia. Some argue that generous welfare benefits might reduce the urgency for job seekers to accept employment, especially if the available jobs are hard yakka mate, in comparison to getting paid to stay at home.
Interestingly, when we look at the numbers, Australia’s generosity becomes evident.
Did you know the median Net Worth in Australia stands at a staggering $1,022,200, with the average household income reaching around $6,883.20 approx per fortnight. The question is, if the median Aussie household are millionaires, when was the last time you felt like one?
I created a table comparing the eligibility rates for JobSeeker with the average Australian Net Worth and Household Income, and I was left astounded.
Keeping things simple, assuming you are a full time professional single primary carer earning approx. $100,000 a year, at a marginal tax rate of 32% after tax, Medicare and super you will be taking home somewhere around $2800 per fortnight.
Now compare that if you were a single primary carer on Jobseeker you will be taking home approximately $2197.
What if you were single with no children? How does $1431 per fortnight sound?
It raises a poignant question about our collective generosity and its long-term sustainability. Are we, in our bid to support, inadvertently hindering the very essence of self-reliance and the dignity of work?
What does all this have to do with real estate and property investing? As my mentor wisely observed, “as goes jobs, so goes real estate.” With the review of 2023 and projections for 2024 laid out before us, the real estate market is poised for some fascinating shifts.
If you’re curious about how these trends might affect your property investment strategies or if you’re looking to navigate these interesting times with informed choices, I’m here to help.
Let’s connect and discuss how we can align your property investing goals with the evolving economic landscape.