Employment has become a major stressor for Australians, a new study reveals
According to recent research conducted by National Australia Bank, people are increasingly concerned about job security over the next 12 months.
The NAB Consumer Stress Index report indicates that job security has become a major stressor for individuals, with concerns rising sharply in the December quarter of 2023, according to a report by The Australian.
This trend is in contrast to cost-of-living stress, which has levelled off but remains a significant source of consumer stress.
Rising job security stress
Job security stress has been steadily increasing among consumers since the September quarter of 2022, as economic conditions have become more challenging, The Australian reported. In the December quarter of 2023, job security stress reached 48.2 points, which is almost 14% higher than the previous year.
Additionally, consumer concern over the impact of government policies on their future spending and savings plans has noticeably increased. Over one in five consumers now report "very high" levels of stress arising from government policies, according to the NAB survey.
Consumer stress index and job outlook
The NAB Consumer Stress Index rose to 59.9 points in the December quarter of 2023, up from 56 points in the previous December quarter, The Australian reported.
Read next: CBA data shows December spending down 3.9%
NAB expects consumer concern around jobs to continue rising this year as unemployment rates increase and the economy slows down. NAB forecasts the jobless rate to reach 4.5% by the end of 2024, up from 3.9% in the previous month.
Savings strategies and spending cutbacks
In response to financial stress, consumers across all income levels are looking for ways to save money and rein in spending.
NAB's survey revealed that one in two consumers have cut back on non-essential expenses such as eating out, entertainment, and car travel. These cutbacks have resulted in monthly savings of around $300, potentially creating a savings buffer of approximately $3,600 per year if continued, The Australian reported.
Regional and demographic variations
The NAB survey also highlighted regional and demographic variations in stress levels.
Overall stress was highest in South Australia and Victoria, with both states reporting a spike in job security stress Additionally, younger Australians, particularly those in the 18 to 29-year-old demographic, expressed the most concern about job security in the next three months.
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