Aussies more unhappy now than during COVID-19 lockdowns
Updated . First published at
Australians are less satisfied with life now than during extended COVID-19 lockdowns in 2020, a new study has revealed.
Growing financial pressures, exacerbated by rising inflation and interest rates, mean Aussies are becoming increasingly unhappy as they struggle with the cost of living, a study from consulting firm KPMG, using ABS data, said.
People are more unhappy now than they were in the middle of COVID-19 lockdowns. Louise Kennerley
On a scale of one to 10, overall life satisfaction has dropped to 7.1, down from 7.2 in 2020 when large parts of the country were under lockdown restrictions, and down from 7.6 in 2014.
Younger Aussies are feeling the economic impacts more, with satisfaction in people aged 24-25 falling to 6.8, almost one whole point since 2014.
KPMG Urban Economist Terry Rawnsley claimed younger Australians were feeling more despondent as the chance of owning their own home decreases.
“[This] reflects the reality of Australia’s housing market,” he said.
“This is a group facing high rents or large mortgages at the same time as real incomes have gone backwards.”
He also said satisfaction levels had fallen to below seven for people aged 45-54; calling this generation the ‘sandwich generation’, he said they were feeling the pinch of having to look after both their children and ageing parents.
Most generations have recorded declines in happiness, and it may not change anytime soon; two rate rises have already been recorded this year, and more could be on the way.
The data from the ABS found over one in five Australians were unable to raise $2000 in a week, and that a quarter of all Aussies had at least one cash flow problem in the last year.
“Unlike the pandemic lockdowns this isn’t a temporary disruption, it’s sustained pressure on living standards,” Rawnsley said.
“These factors have left many average Australians in a precarious financial position for the better part of five years and is undoubtedly affecting how they feel about their lives.”
Taxation reforms proposed by Treasurer Jim Chalmers will take time to make an impact. Hilary Wardhaugh
Rawnsley claimed real wages had declined by 4.1 per cent between 2019 and 2025, while household wealth has not grown, instead remaining locked at around $700,000 in the last six years.
Actions are being taken to address these issues, with the Fair Work Commission last week raising the minimum wage by 4.75 per cent, the second rise in as many years.
Massive overhauls to negative gearing and capital gains tax introduced in this year’s budget are theoretically designed to make it easier for younger people to enter the housing market, though it will take some time for these changes to bear fruit.
The study wasn’t all negative, with the youngest generation of Aussies - aged 15-24 - experiencing a small increase in life satisfaction, rising from 6.9 in 2020 to 7.2 in 2025.
“There would understandably be a boost in satisfaction for younger Australians who experienced a key stage of life like school, university or entering the workforce, in lockdown,” Rawnsley added.
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