🦘 Concerning Student Debt Statistics, Canada’s Warning to Australia, Aussies Increasingly Turn To Side Hustles

G’day everyone!

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

• Concerning Student Debt Statistics

• Canada’s Warning to Australia

• Aussies Increasingly Turn To Side Hustles

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

Australia's Student Debt Dilemma: A $78 Billion Balloon

Australia's student debt is sky-high, clocking in at over $78 billion, affecting almost 3 million Aussies.

As if carrying an average loan of $26,500 wasn't heavy enough, these debts are about to get heavier with an annual inflation indexation.

Predictions suggest a 3.35% bump, potentially adding around $900 to the average debt. 

This inflation adjustment mechanism has seen debt soar from $12.4 billion in 2005 to its current mountainous figure.

The escalation reflects not just population growth but also changes in higher education policies, including fee hikes for some degrees under Scott Morrison’s government.

With debts most commonly between $20,000 and $60,000, and a few unlucky souls owing over $400,000, it's a growing concern.

The increasing timeframe to pay off these loans – now nearly a decade – hints at a deeper issue.

As voices call for a fairer calculation method, pegging increases to the lower of inflation or wage growth, it's clear something's got to give.

Australia's student loans, once seen as a backbone of the economy, may now be more of a shackle for many.

Canada’s Warning Bell: The Perils of Hyper-Immigration

Canada is waving a red flag at Australia, showcasing the dire consequences of hyper-immigration policies. 

With a staggering 1.2 million people added last year, Canada’s infrastructure, from housing to healthcare, is bursting at the seams.

This rapid population growth has outpaced housing construction, leading to a historic low in rental vacancies and a sky-high surge in rental inflation. 

The repercussions are far-reaching, stunting productivity as investments fail to keep up with the burgeoning population.

Warnings from Canada's financial institutions highlight a "population trap," with the country’s capital stock unable to support the swell in residents, deteriorating the standard of living.

With GDP per capita dipping, retail sales declining on a per-person basis, and business insolvencies on the rise, Canada's economic outlook is grim.

As Australia teeters on the brink of following this path, it’s a cautionary tale of how unchecked immigration policies can masquerade as growth, only to undercut the nation’s economic foundations and individual prosperity.

Side Hustles: Australians' Creative Cash Injections

As the cost-of-living crisis grips Australians, many are turning to side hustles to bolster their income, with some netting up to an extra $10,000 a month.

Platforms like Creatoroo are empowering everyday Aussies to dive into user-generated content (UGC) marketing, creating videos for brands without needing a massive social media following.

Wollongong's Elecia Parrott, for example, makes around $500 monthly by crafting content from her home, a venture that blends passion with profit. 

The shift towards UGC marketing is seen as an accessible avenue for those seeking financial relief or simply a creative outlet.

With over 2,000 users on Creatoroo, this trend underscores a growing movement towards diversified income streams.

It's a testament to the ingenuity and adaptability of Australians in the face of economic pressures, showcasing how creativity and technology can merge to create new economic opportunities.

Tech Salaries Hit a Speed Bump

In the fast-evolving tech world, it seems salaries have hit a pause, moving backward ever so slightly from an hourly rate of $57.20 to $57.12 in the past year.

This unique scenario sees the tech sector as the only one experiencing a dip in wages, according to Employment Hero's findings from a massive dataset covering over 150,000 SMEs.

Despite a past surge in paychecks during the pandemic, the tech arena now faces a cooling phase, with hiring on the downswing and a sea of candidates flushed from Silicon Valley's cutbacks flooding the market.

While jobs in cybersecurity and AI remain in short supply, the overall demand for tech talent has noticeably slackened.

As the industry adjusts from its pandemic-induced highs, tech workers are bracing for a shift, navigating through a landscape abundant with talent but with persistently high salary expectations, even amidst widespread layoffs.

That’s All!

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, have an awesome day folks!