- Pay rise tops Australians’ work-life balance wish list as cost-of-living pressures linger.
- Australians continue to embrace Artificial Intelligence with more than half now using it.
- Property market sentiment weakens slightly as more see house price pressures easing.
Australians would rather have a pay rise than a four-day week or more flexible work-from-home conditions as they continue to battle cost-of-living pressures, expect inflation to remain high, and fear the nation faces recession.
The October 2024, Dye & Durham Australian Market Pulse1 survey of 1606 Australians’ attitudes to the economy, the property market and technology, conducted by leading pollster Resolve Strategic, finds Australians overwhelmingly feel safe in their jobs and are embracing Artificial Intelligence with more than half of respondents having used AI at work or at home.
The survey finds signs of a change in sentiment in the property market with slight increases in the number of respondents expecting house prices and rental costs to decline.
Cost-of-living crunch loosens its grip
When asked to identify the number one change that could improve their work-life balance, 41% of respondents said they wanted a pay rise.
This was more than twice those who nominated the ability to work a four-day week (17%) and those who wanted more flexible working conditions such as working from home (11%).
Middle-income earners (45%) were the strongest advocates for a pay rise. The ability to work a four-day week (21%) was most popular among high income earners but even then, 40% of the demographic nominated a pay rise as the change that could most improve their work-life balance.
Despite economic uncertainty, 64% of employed people said they felt secure in their jobs, down from 69% in the June survey, while only 11% said they felt insecure, which was unchanged from June. The number of respondents who were unsure about their job security rose to 25% in October from 20% in June.
Dye & Durham Australia Managing Director Dennis Barnhart said the preference of a pay rise over a four-day week or working from home flexibility suggested cost of living pressures remained paramount.
However, he said the survey showed increased optimism among respondents about their personal finances and this suggested consumer sentiment may be about to improve.
“The findings suggest that the personal financial situations of Australians have been improving since last December 2023, according to the Pulse survey, which indicates that financial pressures could be lifting slightly,’’ Mr Barnhart said.
“Australians, particularly those on better incomes and in paid employment, are becoming more optimistic about their future finances which could signal the start of a change in consumer sentiment,’’ Mr Barnhart said.
Thirty per cent of respondents believed their finances would improve over the next 12 months compared with only 24% in the June Pulse survey.
Higher income earners (40%), university educated (38%) and those with jobs (36%) were the most optimistic that their financial situations would improve over the next 12 months. However, retirees (12%), lower income earners (18%) were the most pessimistic.
The October Pulse survey continues a year-long trend where Australians’ financial situations have been gradually improving with 23% of respondents reporting their finances were better than they were a year ago, compared with 21% in the June survey and 17% in the September 2023 survey.
A clear majority (53%) believe interest rates will stay the same, up from 43% in June, while 13% believe interest rates will fall and 35% believe interest rates will increase.
Australians remain cautious about inflation and the prospects of recession. Almost half (46%) believe inflation will be higher than last year, while 33% believe it will be the same and only 21% believe it will fall.
The proportion of respondents (57%) that believe Australia is in recession or faces a recession within a year has reached its highest level since the Pulse survey began in September last year.
The figures suggest that the per capita recession, where income per head of population is falling, feels like a technical recession which is defined as two consecutive quarters of negative growth.
Property market sentiment shows signs of cooling
While the number of people considering buying a home (19%) continues to outnumber the number considering selling (10%), creating a continuing supply shortage, there is evidence of a potential change in market sentiment.
The proportion of people expecting property prices would fall rose to 9% the latest survey from 5% in June, while the number of people believing prices would rise fell to 71% in October from 73% in June. The number who believe prices would stay the same declined to 20% from 22%.
Rental price rise expectations also eased slightly with 73% of respondents believing rents would continue to rise, down from 77% in June and 5% believing rents would fall, up from 2% in June.
The number of renters considering buying a house in the future also rose to 38% in October from 33% in June, while the number who had given up fell to 44% from 48% in June suggesting recent house price data had reignited some respondents hopes of entering the property market.
Respondents were divided on whether negative gearing should be stopped with 39% supporting its removal, 33% saying they did not care and 28% opposing changes to negative gearing.
More than half of Australians have now tried AI
Australians are continuing to embrace Artificial Intelligence with 56% of respondents in the October survey having now tried it compared with just 36% in September last year.
Half of respondents now say they have used AI for personal reasons, compared to 31% in September last year.
Those who have used AI for professional reasons rose to 43% in the latest survey compared with 25% in September last year.
More than one quarter (28%) of respondents report AI has already become a regular tool at their workplaces, while 9% expect this to happen in the next year. A further 35% expect AI will become a regular tool in the workplace within five years.
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