One in every four Aussie workers are under mental distress due to inflation

Jamie MacLennan, Senior Vice President and Managing Director, Asia-Pacific at LifeWorks

While the gov’t revealed workers’ pay will likely go backwards until 2024-25, the cost of living is having an impact on more than Aussies’ wallet, with new research by LifeWorks showing that inflation is also impacting their mental wellbeing, outpacing COVID and even job loss.

LifeWorks’ Mental Health Index shows one in four Australian workers say inflation is the most significant cause of their stress (26%), followed by the continuation of the COVID-19 pandemic (13%) and job loss (10%). The research also reveals more than half of Australian employees (53%) believe stress is the main reason for their declining mental health.

What were the key findings of the report?

  • 34% of Australians have a high mental health risk, 42% have a moderate mental health risk, and 24% have a low mental health risk.
  • Anxiety & isolation have been the most negative mental health sub-scores for 2yrs straight.
  • 30% feel alone often, and this group has a mental health score nearly 20 points below the national average.
  • 25% of workers identify co-worker relationships as having the most positive impact on their work effort.
  • Changes in workplace culture (37%), a perceived change in how employers handle wellbeing (25%), and a change in communication (13%) have also been attributed to a decline in trust between Australians and their employers.