The Top 5 Trends for 2017

Wednesday, January 11, 2017

Rise of Local

As our cities grow, Australians are adopting approaches we see in other mega cities where a local rather than a citywide identity emerges. Australia’s capitals are becoming cities of villages or regions where residents live, work and interact in a part of their city rather than the traditional commuter approach of suburb living but CBD working. The year ahead will see the rise of the walkable community, the ongoing gathering at the local shopping strip and the growth in local entertainment precincts rather than the city-centre destinations that used to dominate. As unit living increases along with population growth, Australians are looking to meet the timeless human needs of relational health and community connection in their geographical context. From knowing the local barista to supporting the local grocer, increased events in local parks, increased patronage at local clubs and venues and growth in volunteering to support community groups, 2017 will see the rise of local.

Growth of Lifestyle Cities

Last year Sydney hit the population milestone of 5 million and Melbourne is not only growing faster but it is seeing house price increases exceed that of Sydney. The size and associated costs of living in Australia’s global cities is bringing to the fore the benefits of Australia’s lifestyle cities. These are the regional cities that have the employment, shopping and housing options of the big cities but populations not in the millions but the more sustainable hundred thousand or so. In NSW, cities like Newcastle and Wollongong have reinvented themselves from the industrial cities of the 20th Century to be innovation hubs, university towns, and small business friendly 21st Century lifestyle cities. With property prices a third less than Sydney, it is little surprise that these cities are growing at twice the national population growth rate and are seeing recent house price growth exceed that of Sydney. Beyond these cities, regional centres like Wagga Wagga, Bathurst and Albury Wodonga are also growing faster than the national average. In Victoria the lifestyle cities include Geelong, Bendigo and Ballarat and are the state’s fastest growing regions while in Queensland the lifestyle cities include the very fast growing Gold Coast and the Sunshine Coast as well as the inland city of Toowoomba and in the West the cities of Bunbury and Busselton make the list.

DIY Everything

Australia has always had a strong can-do attitude and a weekend DIY project in a property-obsessed nation is part of the suburban life. However with tips and tutorials just a few clicks away, and a how-to YouTube video on everything, Australians are extending the DIY approach beyond just handyman skills. From DIY legal processes like property conveyancing, to arranging complex holidays once the domain of travel agents, to the increased consulting of “Dr Google”, Australians are doing their own research and planning in an effort to save money and solve their own problems. In an era where there is an app for everything from instrument tuning to wedding invitation designing, Australians feel more empowered through technology, more informed through online resources and more motivated to save money and so 2017 will see the ongoing rise of DIY everything.

The Gig-Economy

In the span of a generation, the proportion of Australians working on a part-time or casual basis has tripled from 1 in 10 to more than 3 in 10 today. However in the last year or so, online services like Uber, Airtasker, Freelancer and Deliveroo have ushered in the “gig-economy” and more of this generation will end up being freelancers, contractors or contingent workers than ever before. Recent research shows that a third of the national workforce currently participates in contingent work, and more than 3 in 4 employers believe that it will be the norm for people to pick up extra work through job related websites or apps. Technology and new employment options have made it possible, businesses looking to manage their staff costs and liabilities are driving it and Generations Y and Z who value variety, flexibility and opportunity over job security will make the gig economy mainstream in 2017.

Post rationalism

Last year the electorates of the UK and the US showed the political class not to take their votes for granted and that bombarding people with information and expert opinion will not in itself change minds. 2017 will see the continued rise of the post rational era where it is the heart- not just the head that influences customers, staff members and voters. The 2016 Word of the Year was “post-truth” showing that the power to influence is not in the data and statistics but in the story and social validation. Note that this is not an era of “irrationalism” in that society has more knowledge available and Australians are increasingly more formally educated- rather, it is an era where the rationale alone does not alone decide the matter. Those who can communicate with an emotional, visual and relational connection will do better than those who just have a rational connection.

Watch Mark's full interview on The Daily Edition here

Eliane Miles speaks on NEETs in Australia

Monday, September 19, 2016

Analysis by Eliane Miles on new research released this week from the OECD highlights the challenge for young people entering their working years, particularly considering their transition from education.

While unemployment in Australia at just 5.6% is one of the lowest in the OECD, the number of Australian young people not in education, employment, or training (NEETs) has increased by 100,000 since the time prior to the Global Financial Crisis (2008), rising from 10.5% to 11.8% of all those aged 16 to 24 – comprising a total of 580,000 young people today.

The challenges affecting youth unemployment most often lie in a young person’s transition periods. It is normal for young people to spend some time out of education and work – in fact, 2 in 3 young people aged 16 to 24 will spend up to 3 months out of education and work – but the challenge becomes when this period of time becomes greater and the ‘relevance clock’ begins to tick. When 3 months eventuates into a year, or longer, this can lead to cycles of unemployment. Today, 1 in 5 young people aged 16 to 24 spend 12 months or more out of employment, education, or training, and it is these young people that will face the most significant challenges as they try to enter or re-enter the workforce.

The demographic realities play a significant risk factor in young people falling into a cycle of unemployment. 60% of NEETS are women, and while just 3% of young people are indigenous, this percentage rises to 10% among NEETs. There is also a strong correlation between low educational attainment and struggles in entering the workforce - 37% of students who leave school in Year 10 end up not being in education, employment, or training, compared with just 11% of those with a tertiary qualification.

Watch Eliane Miles on 7 News below:




240,000 young people looking for work

Young people out of work are often stereotyped as “slackers” but in fact 41% of NEETs (238,000) are actively looking for work but unable to find a job. Helping these young people find work needs to become a national priority and a focus needs to be given to their education to employment transition. Studies tell us that the key transition in a young person’s life is from learning to earning – from study to employment. If young people are not job ready, they should be directed to a course or traineeship that will help them get job-ready. Greater collaboration between actors (schools, VET providers, tertiary providers, employment services, childcare providers, and employers) is needed, along with a broader focus on not just higher education but vocational learning.

The remaining 59% who are inactive NEETS

Questions are then most often asked about inactive NEETs – the 40% of NEETs who say they would not like a job, and the 19% who would like a job but aren’t currently looking. What is it that has discouraged them or dissuaded them from entering the workforce?

Educationally, we are seeing a significant push towards tertiary educational attainment. A generation ago in 1986, more than half of all students left school in Year 10 with most going on to start work/vocational training. Today, 9 in 10 young people go on to complete Year 12, and the majority of these enter higher education. Nationally, however, 1 in 5 university students drop out in their first year of university, clearly not being ready for the task at hand or convinced of the choice they have made.

And while we are seeing an increase in university qualifications (our predictions estimate that 1 in 2 Gen Z will have a university qualification compared to 1 in 3 Gen Ys and 1 in 4 Gen Xs), we must keep in mind that everything is not just about higher education or STEM skills. It’s about developing a broad skills base that will continue to sustain Australia’s growing economic and demographic footprint.

Challenges in the skills sector

While the VET sector has seen a 50% increase in students placed in apprenticeships since the early 2000s, the sector is also subject to significant inefficiencies. Traineeship and apprenticeship completion rates are low, qualifications are hard to navigate, some federal funding for programs has been withdrawn, and employment service providers geographically only target 60% of NEETs, leaving 200,000 youth un-serviced by employment services.

The benefits of work are more than just economic

In conversations with young people, it serves us to be reminded that jobs do more good for all of us than just money. They provide a young person with a sense of independence, self-esteem, and social connection, as well as the ability to learn and stay future-proofed. The longer that young people stay out of employment, the more they are to lose connection and become social disenfranchised, leading to greater problems.

The challenge of entry will only accelerate

As we look ahead to the next 10-15 years of Australia’s job market, we estimate that 5.1 million of Australia’s jobs will become digitally disrupted. Today’s savvy school leaver is training themselves for jobs that don’t yet exist. The reality is that new jobs which will be created are more complex than the jobs they replace. If a young person is locked out of the workforce today, it is likely that they will face an even more difficult re-entry in years ahead as the skills required to fulfilk workforce demands increase.

The challenge of financial independence will also accelerate

Commonwealth funding will increasingly become tighter. The economy has natural limits, and supporting an ageing population base and those with disabilities is naturally a more pressing national priority than supporting those who can work but are choosing not to. It’s just a matter of time before government benefits to NEETs will dry up.

Having said that, it’s also important to remember that 25% of inactive NEETs and 41% of NEETs looking for work in fact have not received any government benefits to support them. For these young people, support has largely fallen back to the informal economy, with support provided by family members and friends.

The earnings challenge for today’s emerging generation

It is in fact more financially difficult to get ahead early in life than it once was. In the 1970s, for example, when many Baby Boomers graduated from university, the average graduate starting salary was equal to the average full time adult wage, while today the average graduate starting salary of $54,000 is $26,000 less than average full time annual earnings. Student debt is also higher than ever, with more than 1 in 3 (34%) registered debt agreements belonging to 25-34 year-olds, and the average university debt estimated to be around $28,000. Today’s young generations are actually beginning their earning years in more debt than we’ve seen before. Not to mention the multi-fold increase in the cost of housing – a generation ago the average Sydney house price was 5 times annual average earnings while today the average house price is 13 times the average annual full time earnings of $80,000.

Keeping it in perspective

If young people can continue to accelerate their learning, they’ll have greater chances of success. Just 11% of bachelor-degree educated young people are still looking for full time work within 4 months of completing their course, and the strength of Australia’s economy is creating positive opportunities for innovation and entrepreneurship for young people to place their stamp on Australia's future.

ABOUT ELIANE MILES

Eliane Miles is a social researcher, trends analyst and Director of Research at the internationally recognised McCrindle. As a data analyst she understands the power of big data to inform strategic direction. Managing research across multiple sectors and locations, she is well positioned to understand the mega trends transforming the workplace, household and consumer landscapes. Her expertise is in telling the story embedded in the data and communicating the insights in visual and practical ways.

From the key demographic transformations such as population growth and the ageing workforce to social trends such as changing household structures and emerging lifestyle expectations, from generational change to the impact of technology, Eliane delivers research based presentations dealing with the big global and national trends.

With academic qualifications in community engagement and postgraduate studies in international development and global health, Eliane brings robust, research-based content to her engaging presentations and consulting. As a social researcher, she has been interviewed on these topics on prominent television programs such as National Nine News and Today, as well as on radio and in online media.

To have Eliane Miles present to your organisation on Generation Z, the state of today’s education sector, or the future world of work, contact McCrindle at info@mccrindle.com.au or call 02 8824 3422

DOWNLOAD ELIANE'S SPEAKERS PACK HERE






Sources:

OECD, Investing in Youth: Australia 2016

Graduate Careers Australia

McCrindle

Dare to Dream Research [Case Study]

Monday, August 22, 2016

McCrindle has been delighted to partner with the Financial Planning Association of Australia (FPA) in conducting new research into Australia’s financial hopes and fears for the future. The research, released in time for Financial Planning Week 2016, shows that one in two of us dream more about our future now than we did five years ago.

Daring to dream again

Australians are a resilient and indefatigable, even when faced with difficult economic times. A buoyant 82% of us are full of self-belief in our ability to achieve our goals, which include full financial independence (59%) and more free time to spend with those we love (43%).

We are also hard-working, creative, innovative, and entrepreneurial. Nearly half of us (45%) daydream about the future every few weeks or more, thinking ahead and planning towards our financial dreams.

Yet many Australians have made few concrete steps to turn financial dreams into reality. 63% of Australians report having made “no plans” or “very loose plans” for how to practically achieve the future they dream about so optimistically, and one in four (25%) never seek advice from others when making financial decisions.

The research also shows most of us have financial regrets – namely that we have not saved (47%) and not invested (27%) as much as we thought we should have. Only 35% of women aged 20-51 are happy with what they’ve achieved in life so far.

Life goals linked strongly to financial goals

Australians are most likely to indicate their biggest life goal is a financial goal (34%). Personal (31%) and relational (25%) goals follow closely behind. There is a seeming disparity, however, between vocational and financial goals with only 10% of Australians suggesting their biggest life goal is a career related goal.

Australia’s Four Dreaming Personalities: Risk versus perspective

Four distinct dreamer personalities types emerged from the research. Some working-age Australians prefer investing in long-term goals, while others spend their money as soon as they earn it.

Risk taking varies, with some willing to take significant financial risks, while others prefer to play it safe, only taking calculated risks, or none at all.

Many dream about the future and consider the steps they can take to make it a reality, while others deal with the reality before them and instead live in the present.

Click here to download the infographic, and visit fpa.com.au/dreamerprofiles to take a free online quiz to determine your own financial dreamer personality.

About McCrindle

At McCrindle we are engaged by some of the leading brands and most effective organisations across Australia and internationally to help them understand the ever-changing external environment in which they operate and to assist them in identifying and responding to the key trends.

Our expertise is analysing findings and effectively communicating insights and strategies. Our skills are in designing and deploying world class social and market research. Our purpose is advising organisations to respond strategically to the trends and so remain ever-relevant in changing times. As social researchers we help organisations, brands and communities know the times.

Contact us to find out more about our research services.

Does Generation Y have it easier than the Baby Boomers?

Thursday, April 14, 2016

Generation Y are today’s 22 – 36 year olds, and make up 22% of the Australian population (5.22 million). They also make up the largest cohort in the workforce (34%). Gen Y’s are comprised of today’s parents, senior leaders, influencers, and increasingly wealth accumulators. With 1 in 3 being university educated (compared to 1 in 5 Baby Boomers), they have grown up in shifting times and are digital in nature, global in outlook and are living in accelerated demographic times.

Our Research Director, Eliane Miles, chats to Tony Delroy from ABC Nightlife about the future of Generation Y and whether we need to stop giving Gen Y a hard time.

Eliane, can you compare the wealth of the baby boomers at 25, to Gen Y at the same age – what story do the figures tell?

Well earnings have certainly increased, with average annual full-time salary in 1984 at $19,000 compared to $80,000 today. However houses were also cheaper, with the average price of a residential property costing just $64,000 compared to more than 10 times that across the nation today. In 1975, the median house price was just 5 times the average full-time earnings, but in 1996 this increased to 6 times and today it currently sits at 13 times! Property was cheap, and while it was more difficult to borrow, Baby Boomers were raised with a saving mindset so made the most of their hard work.

There has been a stereotype of Generation Y being demanding in the workplace, not being prepared to put in the hard yards at the bottom of the rung, of not holding loyalty towards employers – to what extent do you think any of those stereotypes ring true?

These stereotypes are the same stereotypes that were made 15 years ago towards Gen X. That somehow the economic mishaps of Gen Y are their own moral failure (lazy, expect too much, spend too much time on social endeavours). Yet there’s a lot of other factors at play and it’s not entirely bad. They’re not locking into a job the same way as their parents (average tenure is 2 years and 8 months for Gen Y compared to 6 years and 8 months for Baby Boomers) but it’s not all bad. Enduring education longer, staying at home longer, the reality of formal education and global connectedness means they’re more equipped and resourced to collaborate in the 21st century, more able to engage in a diverse workforce and lead in collaborative ways.

The fact that Gen Y’s value work-life balance is a good thing, they are less likely to get burned out, more relatable to life, not just saving their leave for one day in retirement but bringing life. Older generations bring experience and structured thinking, younger generations bring innovation, 21st century education, and greater cultural diversity to the working world.

Eliane, do you think there are certain expectations that Gen Y grew up with that they’re suddenly wondering if they’re actually going to happen?

Yes certainly. Gen Y’s saw the miracle wealth accumulation that their Baby Boomer parents had, and expect to start their economic lives in the same way their parents are ending theirs. Now, there’s a realisation that all of the factors that set up the Baby Boomer generation probably won’t be on-side for Gen Y. They’ve dreamt of having it all – the house, the car, the annual overseas trips, the dining out … but the reality of what they’ve been handed is that one or perhaps more of those things need to go.

How was the economic environment different for young baby boomers compared to young Generation Y’s?

Baby Boomers were handed a series of fortunate events. Rather than looking at income in the mid-20s let’s compare the two environments in which they became wealth accumulators.

Firstly, the path begins with their birth (1946-1964), a period of time or remarkable economic development after WW2 (post-war rations, high rate of savings). Beliefs about what the government should provide (health care, education, unemployment, and tax benefits) have reflected the priorities of this generation and the environment that they were raised in.

Then they benefited from the good economic times in the late 1990s and early 2000s, as they were already in the property market. Baby Boomers had a 27 year period of uninterrupted economic boom (from the recession in the early 1990s to 2008) which is likely to be unprecedented and never again seen among Australians of any generation.

Now the tables have turned.

Gen Y didn’t get access to free education, cheap rent while saving or union-protected and secure jobs. Young people today have little prospect of owning a home, so consumer spending improves their quality of life. Baby Boomers have a larger share of the pie while Gen Y, nor any other generation following the Baby Boomers for that matter, will reach a similar landmark. They benefited from advantageous tax systems and modest taxes. Their generation thrived in a unique, economic miracle.

But it’s not all bad news for Gen Y.

Australia is one of the few wealthy countries which has seen disposable income growth be higher for those aged 25-29 than those aged 65-69, with 27% growth compared with 14% growth between 1985 and 2010.

When it comes to homeownership amongst Gen Y members, how do they compare to the generations before them at a similar age?

In 1981, 61% of those aged 25-34 owned their own home and in 2011, this figure had dropped to 47% of those in the same age bracket. Across the board (not just in the younger years) we’ve seen a decline in home ownership. 20 years ago, 42% of Australians owned their home outright, which has decreased to less than 30% today. Furthermore, just 26% were renting, which has grown to almost a third today (31%).

So why this decline? This can be attributed to the emergence of single-person and single-parent households, the growing gap between house prices and average weekly earnings and tax concessions to owner occupiers. With government policies being geared towards home ownership, this means that Gen Y’s who start their earning lives later risk spending more of their income on housing costs when they retire.

Let’s set the crystal ball 50 years into the future – Eliane what do you see for Gen Y in 2066?

Demographically, Australia’s population will certainly have grown – Australia will have over 40 million people, Sydney over 8.4 million and Melbourne 8.5 million, having overtaken Sydney as Australia’s largest city by 2056. Migration will continue to drive growth, and with increasing cultural diversity and greater influence from Asia, the population growth will continue to drive house prices upwards.

Australia’s population will also be ageing. 58% of the population will be in their 50s or older in 2066, one quarter will be over 65 and 1 in 6 will be over 75. In a nutshell, there will be more people aged over 60 than under 20.

And lastly, we will have changed a lot in that time as well. In 2066 Gen Y’s will be aged 72 to 86, and Gen Z’s (those now aged 7-21), of whom there are already 4.43 million in Australia (comprising 18% of the population), will be nearing their retirement years (57 to 71). So by 2066 we’ll have seen 3 more generations emerge after Gen Alpha and we can be sure that these individuals will be shaped in completely different times.

ABOUT ELIANE MILES

Eliane Miles is a social researcher, trends analyst and Director of Research at the internationally recognised McCrindle. As a data analyst she understands the power of big data to inform strategic direction. Managing research across multiple sectors and locations, she is well positioned to understand the mega trends transforming the workplace, household and consumer landscapes. Her expertise is in telling the story embedded in the data and communicating the insights in visual and practical ways.

From the key demographic transformations such as population growth and the ageing workforce to social trends such as changing household structures and emerging lifestyle expectations, from generational change to the impact of technology, Eliane delivers research based presentations dealing with the big global and national trends.

With academic qualifications in community engagement and postgraduate studies in international development and global health, Eliane brings robust, research-based content to her engaging presentations and consulting. As a social researcher, she has been interviewed on these topics on prominent television programs such as National Nine News and Today, as well as on radio and in online media.

DOWNLOAD ELIANE'S SPEAKERS PACK HERE

To have Eliane present at your next event, please feel free to get in touch via email to ashley@mccrindle.com.au or call through to 02 8824 3422

Australia at 12 vs 24 million

Thursday, January 28, 2016

Australia’s population will soar to 24 million this year, but what exactly did the country look like when the population was half that? The year was 1968 – John Gorton was Prime Minister, our soldiers were still in Vietnam and it was the year that Kylie Minogue and Hugh Jackman were born.

But since then Australia’s population has sky rocketed. The population has doubled since 1968. We had just hit 12 million back then, and next month we will hit 24 million people nationally. In fact 1 in 3 Aussies have seen the population double in their lifetime.

The rate of marriages has dropped by over 40% since then, and in 1968 the average woman had 2.34 babies, compared to today’s 1.8.

Weekly earnings have also increased over the last 48 years. If we go back to 1968, the average hourly rate was $1.22, and that meant that the weekly wage was about $48.00 per week. Comparatively, today’s average earnings – if you put it in annual terms – is about $88,000 per year.

While wages have risen so too has the cost of living, and owning your own home is now 5 times more expensive than it was 48 years ago. Back in 1968 the average Sydney home would set you back $18,000, compared to the average Sydney median house price of $1 million today.

But the good news is that milk, butter and potatoes all cost less today. A litre of milk back then was 19 cents, in today’s dollars that’s actually $2.00, which is more expensive than a litre of milk today which is about $1.25.



ABOUT MARK MCCRINDLE

Mark McCrindle is a social researcher with an international following. He is recognised as a leader in tracking emerging issues and researching social trends. As an award winning social researcher and an engaging public speaker, Mark has appeared across many television networks and other media. He is a best-selling author, an influential thought leader, TEDx speaker and Principal of McCrindle Research. His advisory, communications and research company, McCrindle, count among its clients more than 100 of Australia’s largest companies and leading international brands.

DOWNLOAD MARK'S SPEAKING PACK HERE

Sydney: One City, 300 Cultures

Friday, January 15, 2016

Sydney, a city which will soon reach 5 million people, is Australia’s most culturally diverse capital with over 2 in 5 Sydneysiders born overseas. Over half of all Sydney’s population have both parents being born overseas and over 40% speak a language other than English.

According the Australian Bureau of Statistics Census data, Sydney is comprised of people from over 220 countries and significant sub-regions, with over 240 different languages spoken and residents identifying with almost 300 different ancestries.

So which areas of Sydney are the most diverse, and what suburbs have the strongest connections to various cultures?

VISUALISING DATA WITH TABLEAU

Explore Sydney in all its cultural diversity below, where you are able to select any country, language and ancestry and see where people with those characteristics choose to call home within Sydney, or simply click on your area on our McCrindle Tableau map to reveal your area’s profile!

 

An event recap of the Urban Living Index launch

Monday, December 14, 2015

It was a privilege for two of our team, Mark McCrindle and Annie Phillips to attend and present at Urban Taskforce’s launch of the Urban Living Index on Thursday 10th December.

The event was an opportunity to showcase the Urban Living Index and how it can be best utilised as Sydney continues to grow and increase in densification.

The Urban Living Index

Earlier this year we had the opportunity to develop The Urban Living Index, which is going to be used as an ongoing measure for the liveability of suburbs in Sydney. This instrument considers the affordability, community, employability, amenity and accessibility of an area to determine how liveable it is. The challenge for Sydney’s future is to ensure that it responds to population growth yet maintains its world-beating lifestyle and that its liveability rises to match its increasing density. While a city can always improve, the results of the Index show that the city planning and unit development are creating thriving urban communities, as evidenced by the results that show superior liveability in high density Sydney suburbs.


To read the full report, visit the Urban Living Index website here.





Sydney’s most liveable suburbs

Crows Nest-Waverton
Surry Hills
Pyrmont-Ultimo
Marrickville
Potts Point – Woolloomooloo

In the media




Sydney Morning Herald - Measuring urban living across Sydney








Data Visualisation Case Study

Monday, December 07, 2015

Gateway uncovers the state of Australians’ financial literacy, with only 39% of mortgage holders definitely understanding the concept of a ‘split’ home loan.

It was excellent to work with Gateway Credit Union, one of Australia’s leading Credit Unions committed to educating consumers on financial literacy. Our joint study has revealed some interesting figures around the financial literacy of Australians.

Despite the majority of mortgages spanning a 30 year period, the research highlights that your everyday mortgage holder does not truly understand a number of the features and loan facilities that are available to them.

“When buying a home, Australians get into the biggest debt of their life to make the biggest purchase of their life. This research shows more than a third of mortgage holders do not understand basic mortgage terms such as split home loans, redraw facilities and offset accounts. While every mortgage advertisement will display a comparison rate, only 1 in 3 mortgage holders know what this is. It is encouraging to see that the understanding of the new generation of home buyers, Generation Y, was greater than that of the older generation, highlighting an increase in financial literacy amongst the emerging generation.” Mark McCrindle.

The study revealed that the financial terms least understood by mortgage holders are a ‘split’ home loan and the difference between ‘interest rate’ and ‘comparison rate’. Only 39% of those surveyed confirmed that they definitely understood what a ‘split’ home loan was. Similarly, only 35% of mortgage holders definitely understand the difference between ‘interest rate’ and a ‘comparison rate’.

This infographic focuses on the most commonly misunderstood banking terms, and also provides consumers with easy to understand explanations of each of these features.


This research in the media

The Adviser

Mark McCrindle and The Changing Face of Sydney

Thursday, August 20, 2015


Sydney, the place many of us call home, is Australia’s economic powerhouse. We are adding almost 90,000 people to our city every single year, and the 5 fastest growing areas in New South Wales are all located in Sydney. Back 50 years ago Sydney had just hit 2 million people, we are going to finish next year at 5 million people.

Sydney is a fascinating and complex landscape where old ways and old attitudes are disappearing. We used to have a cringe factor of, “this part of the city is better than that part of the city” and people would perhaps be embarrassed if they weren’t closer to where the action was. That’s all changed. People in Greater Western Sydney embrace that as their moniker, proud of being a Westie.

And when it comes to work the CBD is no longer the cities undisputed top dog. Sydney is undergoing an opportunity revolution, with entrepreneurial hotspots sprouting up just about everywhere. You’ve got the media and communications hubs around Surry Hills and Ultimo, and high-tech emerging in areas of Parramatta and even in Penrith. It’s not all just happening in the CBD alone.

NSW also has the highest migration of any Australian state, and Sydney – a global city, receives most of this growth. In this city of diversity, the city’s newest citizens form new tribes in its oldest suburbs.

Sydney has many faces, but what binds us, the one thing we all have in common is this often complex, always beautiful, ever-changing city.

The Changing Face of Sydney; Urban Sprawl Goes Vertical

The Changing Face of Sydney; A closer look at Parramatta

The Changing Face of Sydney; Is the Sutherland Shire the new boom town?

The Changing Face of Sydney; The Changing Face of Liverpool

The Changing Face of Sydney; The big Development Flying Under the Rader

Q AND A WITH MARK MCCRINDLE


Q: Just wondering how many have first language of English?

A: Sydney is one of the most culturally diverse places in Australia. Almost two in three households have at least one parent born overseas, and China may soon overtake England as the country Sydneysiders born overseas were most likely born in.


Q: My children – aged 11 and eight – and I just watched the Changing Face of Sydney. They would like to know how our suburb, Loftus, has changed over the years. Or anything exciting you can tell them about our great suburb.

A: Well it is a fascinating suburb – home to far more families with kids than the state and national average. Averaging two children per household (well above the average) and with more stay-at-home parents than average. Earning more, volunteering more, and with a higher proportion of children than most Sydney suburbs – sounds like a nice, family-friendly place to live.


Q: What does the future of Blacktown look like as a part of the changing face of the western suburbs?

A: Blacktown has consistently been the fastest growing areas in the whole of NSW over the last decade. The Blacktown City area is home to more than 300,000 people, which means it is home to more people than the whole of the Northern Territory!


Q: We have just moved to Mosman from Adelaide, what can you tell me about Mosman, its demographic and its history?

A: Mosman is home to far more females than males - average age is 40, well above Sydney’s 36 and the residents’ earn more and work longer than the NSW average. Three in five of those in the labour force in Mosman work more than 40 hours per week. It is also home to twice the proportion of professionals and managers than the state average.


Q: What are your views on Sydney property growth in the short term? Is this boom likely to continue? NSW future infrastructure projects are encouraged by this strong stamp. What would be the result if the interest rates increase?

A: Yes Sydney’s property prices are no bubble. They are underpinned by more demand (population growth) than supply (new home builds). Not only is Sydney growing around 85,000 people per year, but households are getting smaller so the housing demand is even outstripping population growth. However, Sydney prices will no doubt plateau at some point, as they have before.


Q: Which suburbs have big potential for growth? Where will be more infrastructure developments?

A: Greater Western Sydney is where the population growth is and where there will be a lot of new infrastructure over the decades ahead. Plus prices are beginning from a lower base than the east. And keep in mind that by 2032 Western Sydney will be larger than the rest of Sydney (2.9m compared to 2.7m).


Q: My partner and I are planning to buy a house. What is the quietest place in Sydney?

A: The quiet suburbs on the urban fringes – Shanes Park, Cranebrook, Marsden Park, Badgery’s Creek – are acreage at the moment but will be development central in a few years. So the quiet may just be temporary.


Q: Where is the best place to invest, which suburb?

A: Really depends on budget and also having a long-term view. Suburbs change: Redfern, Balmain, Newtown, Campberdown were once not considered desirable suburbs and are now very expensive. So it is good to look at population growth trends and emerging infrastructure. A suburb not “hot” at the moment if it is in Sydney will be a winner long term.


Q: What are the reasons for different ethnicities to settle in the respective suburbs? (Chinese in Hurstville and Chatswood, British in Manly, etc.)

A: Often it is where they have connection/family and so various suburbs end up with strong ethnicities. For example, traditionally Greeks settled in Kogarah, many from Vietnam called Cabramatta home and more recently a strong connection of those from India to Harris Park.


Q: What proportion of the Hills district is evangelical and also now the Shire?

A: The ABS census data shows religion by denomination and it shows that for example the Hills have less than 19 per cent while the Shire has more than 25 per cent Anglicans.

The cost of work: What we pay to work

Monday, August 17, 2015

The unemployment rate is rising, but so are the costs of work. And while living costs and house prices have been rising faster than wages, the costs associated with work are also on the way up. From toll roads to public transport costs, a simple cup of coffee to updating work clothes. From childcare costs to tax increases, Australians are paying to work.

A recent 2015 McCrindle Research study of over 540 working Australians reveals that income doesn’t just generate wealth, it also consumes it. Australians are forking out more than ever on transport costs, clothing and food while they are working, significantly reducing their take-home pay. Incurring travel costs associated with work, work-related education expenses, child-care costs, and income tax all further reduce a full-time worker’s take-home pay to less than two thirds of their gross salary.

THE LIFESTYLE COSTS OF WORK

95% of working Australians spend their own money on food and beverages during work times, with almost 3 in 4 Australians (74%) purchasing lunch, morning tea, or coffees when at work or when travelling to/from work at least once per week. More than one fifth of Australians (22%) spend their own money on consumable food items every single day while they are at work.

YOUNGER MALES BUY LUNCH MOST

Males tend to eat out more often, with 27% of male employees purchasing food or beverages at least once per day (compared with 16% of females). The frequency at which employees purchase consumables while at work decreases with age. While 78% of Generation Ys and 77% Generation Xs spend their own money on food and beverages at least once per week, this reduces to 60% for the Baby Boomer Generation.

ALMOST $900 ON LUNCHES PER YEAR

The average Australian employee spends $18.52 on lunches, snacks, and beverages during their workday every week. This takes into consideration the 6% of Australians who don’t spend money on food while they are at work, and ranges to include those who go out more than once a day, some of whom spend over $100 on food and beverages while at work each week. Over a 48-week work year, this average weekly spend accumulates to $889 per year.

THE COST OF FASHION

In an effort to keep up with the latest styles and fashions or simply to avoid wearing the same thing every day, employees spend hundreds of dollars on clothing per year. Australians report spending an average of $320 each year of their own money on clothes they require directly for work. This includes employees across all industries and factors into account those who spend very little, having uniforms supplied, as well as those who purchase corporate apparel.

GETTING TO WORK: THE RISING COST OF CARS

After childcare and tax costs, transport is the greatest expense when it comes to work, with the average Australian spending $99.88 each week on work-related petrol costs, tolls, and/or public transport tickets. While public transport cost increases have been modest, the big challenge for workers has been the rising cost of petrol, tolls and car ownership, and this is particularly relevant for the 2 in 3 Australians (65.5%) who travel to work by private vehicle. The average full time worker spends almost $4,800 per year just on getting to and from work.

UPSKILLING, RETRAINING AND KNOWLEDGE-GAINING

30% of working Australians spent their own money last year on education and training directly associated with their line of work, averaging to $1,936. Overall (accounting for the 70% who didn’t spend any of their own money on employment-related learning), the average Australian worker spends $588.60 per annum of their own money on training, and much of this, where it is retraining for a new career or role, is not tax deductable.

THE CHILDCARE COST CHALLENGE

The Productivity Commission Study into childcare shows the median childcare costs are $7.40 per hour ($74 for a 10 hour day). For those requiring full time childcare for 50 hours per week, this would cost them $370 per week which equates to 22% of the average full time weekly earnings.

A TAXING PROBLEM

The current average full time weekly earnings is $1539.40 per week ($80,049 per annum) which brings this average wage into the third tax bracket (a tax rate of 37 cents per dollar). Based on the 2015-2016 tax schedule this average annual earnings package would attract a tax bill of $16,768.

FOR MANY, IT IS MORE THAN HALF

The average full-time Australian worker who earns $80,049 per annum (current full time adult weekly earnings) is spending $889 of that on lunches, $320 on wardrobe changes, $4,794 on transport costs, $587 on education, $17,760 on child-care (based on 70 hours at average costs) and $16,768 on tax (not including tax deductions). These total work costs add up to $41,118, which is 51% of the average annual gross.

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