It’s a trend we know all too well that’s backed up by research over and over again: young people (especially Gen Z) are lonelier and have worse mental health than ever. The latest release of the Household, Income and Labour Dynamics in Australia (HILDA) report has sparked the most recent round of discussion, finding that almost half (42.3%) of people aged 15-24 were psychologically distressed in 2021 – up from 18.4% in 2011. But frustratingly, the finger is still being pointed at phones as a primary cause of this.
Co-author Dr Ferdi Botha, said, “Loneliness increased in the first two years of the COVID-19 pandemic, but for young people, there is a longer-term trend increase apparent. It may be that this is partly connected to growth in smartphones and social media use.”
Frankly, we’re tired of the discussion around the undeniable youth mental health crisis ignoring the economy. The financial environment we’re living in has a significant impact on our mental health and wellbeing – it’s time we really talk about that.
We can’t afford to get ahead
Blaming things on the cost of living crisis has become pretty stock standard these days, but the link between mental health and the economy is not just a hypothesis; it’s very real. Since Gen Zs were born in the late nineties, the gap between productivity and wages hasn’t stopped widening. According to the Australian Institute: “Since March 2012, productivity across the economy has increased 11%, in that same time real wages per hour have fallen 0.2%.” This means that while the companies are making more than ever, the money going to workers has gone backwards. It’s hardly surprising that this economic disparity has had a tangible impact on the mental well-being of people, especially the younger generation, as we face the daunting challenge of navigating a world where financial stability feels increasingly elusive.
Beyond Blue actually analysed HILDA’s data in 2022, and found that “people experiencing financial challenges are twice as likely to be experiencing mental health challenges as those who are not experiencing financial challenges. Similarly, people experiencing mental health challenges are twice as likely as those who are not to also be experiencing financial challenges.” They found that the main financial factors that worsen one’s mental health included major worsening of finances, unpaid bills, lack of emergency funds, socio-economic disadvantage, material deprivation, poorer perceived financial prosperity.
HILDA also reported this year that “between 2007 and 2021, the percentage of women who were psychologically distressed was higher than men.” For men, psychological distress increased by 51% over this period, and for women distress increased by 63%. Of course there are many reasons why this could be the case including balancing domestic and work duties plus emotional labour. The gender pay gap and the added responsibilities of caregiving and domestic work, without the option for affordable childcare all contribute to this heightened stress. It’s also important to note the correlation between domestic violence and poverty. Research from experts at Oxford University and Bristol University found that “women who spent longer periods of their childhoods in deprived neighbourhoods were more likely to experience intimate partner violence.”
But sure, blame it on kids and their phones these days!
We can’t afford to help ourselves
Even if someone wanted to take action to better their mental health despite their financial circumstances, they would run into barriers. Take exercise, for instance. Many of us can’t afford the time to prioritize physical activity because we’re stretched thin by work and financial obligations. Let’s say instead you want to avoid isolation by hanging out with a friend. The rising cost of living has essentially made socializing a luxury. Hanging out with friends, once a simple pleasure, has become an expensive endeavor. The cost of leisure activities, like going out for a cup of coffee, adds to the financial burden. Even the impact of climate change can’t be ignored, as it limits our options for affordable hangout spots or “third places.”
The average pay per week for someone in their young twenties in Australia is $500-$999. For a single person, groceries are on average $140 per week. Rent is around $580 per week, which means to cover one person’s essentials they need $720 a week. The average clinical psychologist appointment varies between $240 and $265 per session, with a rebate of $136.35 per session. Although the rebate is helpful, $100 per week for therapy simply cannot be a priority or even part of an average twenty-something-year-olds budget in this economic climate.
It’s no wonder we turn to our phones it’s our only escape. However, the digital age, while offering connectivity has also become a source of mental strain. We’re constantly bombarded with news of wars, natural disasters, and human suffering. Although it’s important that we consume this information, it can be hard to do this sustainably. The constant exposure to distressing news takes a toll on our mental well-being, leaving us feeling isolated and overwhelmed.
Money really can equal happiness
Other countries are exploring the link between financial stability and wellbeing. Although Iran is the only country that provides full Universal Basic Income (UBI) (South Korea provides partial UBI) there have been many countries that have trialed the concept out in reporting promising results. After a two-year trial wrapped up in 2019, Finland reported that, those who received basic income “described their wellbeing more positively than respondents in the control group. They were more satisfied with their lives and experienced less mental strain, depression, sadness and loneliness. They also had a more positive perception of their cognitive abilities, i.e. memory, learning and ability to concentrate.”
It makes sense— one of the goals of UBi is to reduce, if not eliminate poverty. There is even research linking the stress of poverty with inflammation in the brain. Sure you could take Neurofen for the rest of your life, but imagine what climbing above the poverty line could do for your brain health. UBI means the ability to go out and engage in social activities, that generally cost money. The pandemic has shown how important social connections are for our mental health. We all need love and companionship. If you’re thinking we already have Centrelink, shouldn’t that make us happy, unfortunately the reputation around applying for welfare in this country further isolates people who are already in an unsteady situation. UBI however has the potential to reduce stigma associated with financial assistance as it is for everyone, no one is singled out or left behind. This can foster a more inclusive and supportive societal environment that values the well-being of all its members.
It also gives people the means to focus more on engaging with their communities, rather than just trying to make it till the end of the month. This includes the unpaid labourers of the world – carers, parents, and volunteers. UBI shows these workers that their efforts are valued and appreciated. If we have a baseline of security, we’d be able to shift our focus from just economic growth, which doesn’t benefit everyone, to social and emotional growth. It would allow people to reassess what matters most to them and give them a platform to live more meaningful lives. In fact, research indicates that “having greater purpose in life was significantly associated with lower levels of depression and anxiety.”
The state of our mental health cannot be divorced from the state of the economy. UBI isn’t going to get rid of all mental health issues, but it’s a great start. Governments need to implement policies that prioritize fair wages, affordable healthcare, accessible mental health services, and support for caregivers as they can significantly alleviate the stress and anxiety associated with economic hardship. Although not directly speaking about economics, Dr Ferdi Botha from HILDA did say, “If there aren’t actions taken or policies implemented to intervene, we may see loneliness and psychological distress increasing in the younger generations and this may lead to lower mental and physical wellbeing and other wider societal issues.”
Investments in education, job training programs, and social safety nets can empower individuals to navigate economic challenges and build resilience. By integrating mental health considerations into economic policies, governments can create a more equitable and supportive environment, ultimately fostering healthier and more resilient communities. Maybe one year the HILDA report can give us some good news regarding young people and their mental health. It’s high time we recognize the correlation between economic stability and mental well-being and work towards solutions that address both aspects. Only then can we hope to create a society where mental health is valued and nurtured.
Smart people read more:
Maybe Our Phones Aren’t the Problem, Argues a New Book – TIME Magazine
Paying A Heavy Price: The Mental Health Toll Of The Rental Crisis in Australia – Refinery29
How Do We Move Beyond Mental Health Awareness To… Real Action?
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