The Report to the Nation warned that “levels of financial and job security are worryingly low.” One in two people reported feeling financially insecure, and only 65 per cent reported feeling confident to meet normal monthly living expenses.
These findings are consistent with our recent comments about the need to support workers who are experiencing cost-of-living pressures.
The link between mental, financial, and physical wellbeing is well documented. A recent Australian study found that COVID-19 – and its disruption to our social world and financial stability – was a primary cause of mental health distress. This was backed up by an earlier study published by the British Psychological Society which found that money worries had a potential impact on worker health due to “increased work-family conflict and stress associated with financial insecurity.”
Dr Jamie Phillips, Sonder’s Medical Director and a practising physician in emergency medicine and remote medicine is acutely aware of the difficult compromises that employees are making to the detriment of their overall health.
“People are having to make difficult health-purchasing decisions and are prioritising their basic human needs, such as paying their rent or mortgage over paying for prescriptions or seeking medical care. Too many Australians are not getting the help they need, and this has been exacerbated by the recent cost-of-living stress on household budgets.”
—Dr Jamie Phillips
Medical Director, Sonder
In addition to the mental health effects of financial insecurity are the physical health implications of workers missing vital medical appointments or not filling their prescriptions due to out-of-pocket costs.
Dr Phillips cautions that financial insecurity has broad implications for individuals, their families, their employers, their communities, and the wider society.
“Left untreated, problems escalate, which means higher treatment costs for individuals, plus increased absenteeism and lost productivity at work.”
—Dr Jamie Phillips
Medical Director, Sonder