🦘 The Biggest Pay Rises Across Australia, Harvey Norman Bets Big on AI, Aussies Work Harder But Productivity Takes A Dip

G’day everyone!

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

• The Biggest Pay Rises Across Australia

• Harvey Norman Bets Big on AI

• Aussies Work Harder But Productivity Takes A Dip

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

Cashing In On Career Moves: Australia's Salary Surge Scene

Dreaming of a juicier paycheck? It's time to jump ship!

SEEK's latest dish on dough reveals that folks switching gigs bagged salary bumps 1.6 times fatter than the stay-putters.

On the Aussie job front, advertised salaries are up by a respectable 4.5% year-on-year.

Leading the pay parade, community services and development roles flaunted an 8.9% salary swell, with a nod to a mid-year pay hike for aged care workers stirring the pot.

But not all sectors are swimming in salary surges.

Techies, brace yourselves - IT's salary growth is more snail-paced at 1.9%.

Peek into the past year, and you'll spot community services dominating the top 20 roles with the heftiest salary hikes, alongside manufacturing, transport, logistics, retail, consumer products, and healthcare gigs.

Top of the charts?

Fitter technicians and aircraft maintenance engineers, with salaries soaring up to 28%.

SEEK's number cruncher, Matt Cowgill, spills the beans: while salary growth's taking a chill pill in line with the job market's cool-down, it's still robust.

And here's a ray of hope - advertised salaries are finally outpacing inflation, flipping the script on the real wage woe.

AI Hype: Harvey Norman's Bet on a Tech Revolution

Gerry Harvey, the face of Harvey Norman, is crossing his fingers for an AI windfall, hoping it'll be the superhero to swoop in and rescue the retailer from its sales slump. 

With profits and foot traffic taking a nosedive in the latter half of 2024, Harvey's putting all his chips on AI to kickstart a tech frenzy and get shoppers flooding back in.

It's no secret that consumer spending has hit a rough patch, thanks to the cost-of-living crunch, leading to a less-than-stellar performance for Harvey Norman.

But Harvey is optimistic, hinting at a game-changing wave of AI-infused products that could redefine the tech landscape and, more importantly, Harvey Norman's cash registers.

Despite a 30% plummet in net profits and a 31.8% dip in operating earnings, Harvey's not ready to throw in the towel. 

Instead, he's looking forward to a potential tech boom, courtesy of AI, which could not only revolutionize product offerings but also breathe new life into the retail sector.

As the anticipation builds, Harvey's vision for a tech-driven revival hinges on the promise of AI.

If the tech lives up to the hype, Harvey Norman might just be on the brink of a major comeback, marking an exciting chapter in the retailer's history and potentially in our tech-savvy lives.

Aussies Work More, Not Smarter: Productivity Takes a Hit

Aussies are clocking in extra hours in a bid to fatten up their paychecks, but it's not doing much for the country's productivity.

According to a fresh report from the Productivity Commission, even as Australians put in a record-breaking 6.7% more hours in the 2022-23 fiscal year, economic output didn’t keep pace, leading to a 3.7% drop in productivity.

This trend spells trouble for future income growth since working smarter, not harder, is the key to sustainable economic progress.

The report points out that reliance on additional hours for income growth isn’t viable long-term, especially as the labor force participation rate hits a peak.

Moreover, a failure to boost productivity could further fuel inflation, creating a tricky situation where wages increase without corresponding productivity gains, potentially leading to a wage-price spiral.

However, there's a glimmer of hope as the commission notes a halt in the productivity decline in the first quarter of the 2023-24 financial year, attributing it to a decrease in hours worked.

Despite a slight disconnection between wages and productivity, the link remains largely intact, emphasizing the importance of productivity improvements for real wage growth.

Airtasker’s Strategy Shift Boosts Earnings

Airtasker’s strategic decision to cut 45 jobs has paid off, leading to a significant improvement in earnings. 

This move, part of a broader operational restructure last April, helped the online services marketplace save $5.6 million in employee benefits, allowing a greater focus on sales and marketing.

The result?

A slight revenue increase to $23.3 million and a flip from a $5.1 million loss to a $1.7 million group EBITDA. 

This turnaround is especially pronounced in Australia, where Airtasker’s EBITDA jumped from a $2 million loss to a $7 million gain. 

CEO Tim Fung attributes this success to the company’s emphasis on enhancing the core Airtasker product experience, leading to improved marketplace reliability and reduced cancellations.

Fung also highlights the positive impact of Airtasker's partnership with Channel 4 in the UK, which has already resulted in a 30% growth in posted tasks.

Looking ahead, Airtasker is set on driving revenue growth and operational efficiency, eyeing a bright 2024 with further expansions and a focus on its strategic marketing efforts.

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!