🦘 Rents Drop In Capital Cities in May, Google Makes Huge AI Prediction for Australia, Aussie Workers Face Low Engagement

G’day everyone!

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

• Rents Drop In Capital Cities in May

• Google Makes Huge AI Prediction for Australia

• Aussie Workers Face Low Engagement

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

Renters Rejoice: Rents Drop in Major Capital Cities!

Great news for renters in Australia's capital cities: May saw a significant drop in advertised rents - the largest percentage decline since 2020.

The national median weekly rent now sits at $624. Here’s a quick rundown:

• Sydney saw the biggest drop with a 1.1% decrease, bringing the average rent to $844 per week.

• Darwin rental prices took a 6.3% nosedive to $566.27, particularly driven by an 11.9% drop in unit rents which now average $479.06.

• Hobart's rents dipped 0.3% to $501.91.

Melbourne and Canberra held steady with no significant changes, though Melbourne’s units saw a slight 0.2% increase.

Meanwhile, renters in Brisbane, Perth, and Adelaide weren't so lucky, experiencing rent hikes:

• Brisbane rents rose by 0.7% to $659.74.

• Perth saw a 0.4% increase to $714.95.

• Adelaide experienced a 2.1% surge to $592.50.

Despite this monthly dip, the year-over-year picture shows rent increases across most capital cities, averaging an 8.9% rise in 2023.

Louis Christopher, Managing Director of SQM Research, cautions that the rental crisis is ongoing, with tight vacancy rates expected to continue into 2024 due to a drop in housing completions and sustained high demand.

So while May has brought relief, the long-term outlook for renters remains challenging.

Google Predicts a $290 Billion AI Boon for Australia by 2030

Is Australia set to strike gold with AI?

Google’s latest report sure thinks so, forecasting a massive $290 billion boost to the economy by 2030, thanks to advances in artificial intelligence.

This optimistic figure hinges on the adoption of over 400 traditional AI applications and 60 generative AI use cases across sectors like healthcare, manufacturing, and retail.

Think smarter tools, streamlined operations, deeper customer insights, and new market exploration – all powered by AI.

Google's report also suggests AI could also guard against $6.7 billion in cybercrime losses and dodge $3.9 billion in climate-related property damage by making disaster responses quicker and smarter.

Australia's government is on this AI train, working on risk-based regulations to foster trust without stifling innovation.

However, not everyone’s cheering.

Critics worry that tech giants like Google have too much influence over AI policy.

They’re pushing for a dedicated regulator and levies on Big Tech to support homegrown “sovereign AI” systems.

In the meantime, Google is doubling down on its commitment to Australia’s digital future via its Digital Future Initiative, investing in infrastructure, research, and partnerships.

Their aim? To keep Aussie businesses of all sizes ahead of the curve and globally competitive.

So, buckle up, Australia. With AI in the driver's seat, the future looks promising—and potentially very profitable!

Aussie Workers Face High Stress and Low Engagement: Survey Sheds Light

A recent Gallup poll reveals that nearly two-thirds of Australian workers are disengaged at work, with men feeling it a tad more than women.

To make matters more tense, nearly half of all employees report experiencing "a lot of stress" on the job.

In the midst of these pressures, three-quarters of Aussie workers believe it's prime time to hunt for a new gig, fueled by ongoing skills shortages.

In fact, 44% are either on the lookout or at least considering a job switch, a figure steady from last year.

According to Claire de Carteret from Gallup APAC, this spells trouble: “Australian workplaces are facing a retention, productivity, and mental health crisis.”

With almost half of the workforce ready to jump ship, she presses for immediate action to boost employee engagement and wellbeing.

The numbers are stark:

Only 21% are truly engaged at work, while 12% are actively checked out, translating to a hefty $220 billion drain on the economy.

In terms of stress, Australia sees 48% of workers reporting high stress on recent workdays.

Yet, there's a silver lining: Australia leads globally in thriving employees, up 4% from last year, and has the lowest daily loneliness rates.

Interestingly, despite higher engagement, women are 5% more likely to feel stressed than men.

So, what's the big takeaway?

It’s clear that fostering a positive work culture more than ever is essential. Ready for a workplace reboot, Australia?

Execs Get Raises While Aussies Battle Inflation

A new report from the Governance Institute of Australia revealed that top brass at ASX-listed companies enjoyed hefty pay bumps last year, with execs seeing a 14% rise and managing directors notching up 11%.

The average CEO pay for ASX 200 firms jumped to $1.37 million in 2023/24 from $1.14 million the prior year, while MDs' salaries climbed from $1.58 million to $1.88 million.

On the flip side, general staff at the same companies only saw a modest 5% increase.

Governance Institute chief, Megan Motto, highlighted the growing gap between execs and regular workers, suggesting it's a tough pill to swallow against the current cost-of-living squeeze.

She indicated that shareholders might need to voice their concerns if they see reputation risks brewing from this disparity.

Interestingly, around half of the CEOs and MDs snagged performance bonuses too, with potential bonuses clocking in at 93% for CEOs and 89% for MDs.

These hikes follow a solid performance on the Aussie stock market, rewarding execs for impressive shareholder returns.

But it's not all rosy for everyone: the Fair Work Commission just increased the minimum wage by 3.75%, bumping the lowest-paid workers to a $24.10 hourly rate starting July.

As executive remuneration continues to soar, Motto anticipates shareholders will keep a close eye on these trends and demand more justification for such substantial payouts.

You Made It!

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

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