Financial stress levels worsen

John Kavanagh

The number of people experiencing financial stress is increasing, especially among the self-employed, despite the strong economic rebound.

This is the key funding of the latest Melbourne Institute survey of the impact of COVID-19 in Australia.

The proportion of survey participants reporting financial stress (having difficulty paying for essential goods and services) has increased from around 20 per cent towards the end of last year to 31 per cent now.

The level of financial stress has returned to where it was in April last year.

The survey also found there was increase in the level of mental stress, with 24 per cent reporting that they feel depressed and anxious most of the time – a record high for the survey.

The Melbourne Institute said job insecurity was the most likely cause of financial and mental stress. About half the self-employed are financially and mentally stressed, while those employed on a continuing basis have the lowest stress rates of any group.

The author of the report, Guay Lim, said the results suggest that the economic recovery is not being felt equally across Australian society.

Lim said: “This is an opportunity for policy makers to address the persistent issues of job insecurity and underemployment, particularly among low and middle income earners.”