🦘 Aussie Economy In Make or Break Situation, ANZ’s Concerning Unemployment Projection, WA Building Boom

G’day everyone!

Here’s what we’ve got in store for you today:

• Aussie Economy In Make or Break Situation

• ANZ’s Concerning Unemployment Projection

• WA Building Boom

Let’s have a look at the market snapshot before jumping into the news:

Deloitte's 'Fork in the Road' Warning to Aussie Economy

Deloitte just dropped a cautionary tale about the Australian economy, and it’s pretty much a "make-or-break" moment according to their latest forecast.

Here’s the lowdown:

1. Interest Rates: We've seen a wave of interest rate hikes that’s already stretching household budgets and business operations to their limits. Deloitte flags that more rate rises could lead to long-term economic dullness.

2. Inflation: Despite the Reserve Bank’s battle against inflation, prices keep creeping up. If we don’t get a handle on this, Deloitte says we’re staring down a nasty spell of stagflation - where rising prices mesh with a sluggish economy. Yikes!

3. Productivity: Australian productivity growth has been chilling in the slow lane recently, and Deloitte stresses this needs a serious kick-start to keep us in the global game.

4. Skills Shortages: There's a glaring gap in skilled labor across various sectors. Deloitte highlights that fixing this is key to keeping the economic wheels turning smoothly.

In summary, Deloitte warns that Australia is at a critical juncture.

The economic choices we make now could either steer us back to calm waters or into a storm of prolonged stagnation.

It’s a tall order, but addressing these hotspots can lock in a brighter, more prosperous future for us all.

So, let’s see if we can navigate this economic roundabout without taking the wrong turn!

Brace Yourself: Unemployment Rate Could Skyrocket Over 5%

Economists are raising red flags over a potential surge in unemployment rates, warning that the labor market might take a nosedive.

In short, ANZ is predicting a sharp deterioration, with recruiters now flooded with hundreds of applications for individual positions.

What's next? The Reserve Bank of Australia (RBA) is diving into the data on unemployment ahead of its next meeting in August to figure out the best course of action.

For folks like Michael, a Sydney-based account manager in his 40s who lost his job last year, the hunt for new work has been brutal.

Even after hiring a job consultant and shelling out over $1,000 to polish up his resume and cover letter, responses from recruiters have been crickets.

Although he eventually found new work, it came with a massive pay cut.

This brewing storm in the job market suggests that unemployment rates, already inching up, might shoot past the 5% mark in the near future.

With the RBA gearing up for some crucial decisions, the focus is now on how to stabilize the labor market without sending it into a tailspin.

As businesses brace and job seekers hustle like never before, the coming months will be crucial in determining just how bumpy the road ahead will be.

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WA's Building Boom: A 60% Surge on the Horizon!

Western Australia (WA) is gearing up for a construction craze, with building starts predicted to skyrocket nearly 60% by 2029.

This sunny forecast comes courtesy of Oxford Economics Australia, signaling a golden era ahead for builders and anyone with a hardhat.

However, there's a bit of a plot twist.

While the surge in building activity is set to scale new heights, WA is still expected to face a major housing crunch.

Projections point to a shortage of about 20,000 homes in just five years. So what’s causing this gap?

A booming population and soaring demand outstripping the pace of construction.

This means that despite the growth spurt in building starts, the supply might not keep up with the insatiable demand for housing in the region.

For those in the real estate game, it’s a mixed bag – plenty of work ahead, but also a pressing need to figure out how to close that housing gap.

Don't pack away those blueprints just yet, WA; it's going to be a busy, nail-biting climb to 2029.

Is Social Media the Ultimate Frenemy? Economists Say It Could Be True!

Economists are puzzled by social media's real value, given how central it’s become in our lives without denting our wallets.

A 2019 study pegged Facebook's value for U.S. consumers at $40-$50/month. But here comes a shocker: new research suggests social media might actually have negative worth for users!

Leonardo Bursztyn from the University of Chicago, at the Economic Society of Australia's conference, revealed that many users might be better off without social media.

US students surveyed were willing to pay $28 to be free of TikTok and $10 for Instagram, contradicting previous theories that usage equates to value.

The kicker? Most TikTok users (64%) and nearly half of Instagram users (48%) would even pay to ditch these apps if everyone else did too.

This is akin to hating something yet feeling compelled to use it - much like an addictive habit.

Interestingly, only 4% of digital map users wished maps didn’t exist, while 57% of Instagram users felt that way about the app.

Fear of Missing Out (FOMO), entertainment, and sheer addiction keep people hooked.

These quirky findings could inform the Australian Senate's inquiry into social media's impact.

Looks like it might be okay to crack down on our digital distractions since a lot of us would silently cheer for it!

You Made It!

If you’ve read all the way up to here, we just wanted to let you know that you’re an absolute legend!

Time to go to work and show off how clued up you are about what’s going on in the business world 💪

Keep an eye out for tomorrow's newsletter. Until then, we’d love to get your feedback below!