Money worries worsen workforce wellbeing crisis

SONDER

Financial insecurity is leading to poorer employee wellbeing and is exacerbating Australia’s workforce wellbeing crisis, medical experts suggest.

Official statistics have laid bare the economic fragility of Australia’s workers, and lifted the lid on a workforce in serious physical and psychological distress. Inflation has jumped to 6.1 per cent over the year to June – the fastest pace in more than 30 years. Medical experts are warning of a worsening workforce crisis as workers grapple with the soaring cost of living, and poorer overall wellbeing.

 Key Points:  

• The latest census statistics reveal more than 8m Australians have a long-term health condition, with mental health issues surpassing every other chronic illness. Census data also highlights increased cost of living pressures, as Australians face paying bigger mortgages and higher rents. Australia’s inflation rate, or CPI, is currently at a record high.  Meanwhile, official labour statistics show that Australia’s underemployment rate has increased to 6.1 per cent and that people are working fewer hours than usual due to their own illness or injury or sick leave.
• The figures correspond with the findings of a Sonder-commissioned survey of 1,025 employees in Australia working more than 20 hours per week. The sobering survey shows that employees are not feeling physically and/or psychologically safe at work, and that employee concern about mental wellbeing is affecting workplace attendance rates.
  • 42 per cent of employees reported taking time off work in the last 12 months due to concerns about their mental wellbeing, with 26 per cent of respondents reporting taking time off work in the last year due to concerns about the mental wellbeing of their friends or family.
  • Survey respondents who worked part time or casually were more likely to feel uncomfortable talking to their manager about mental wellbeing (43 per cent), compared with 31 per cent of respondents who worked full time.
  • Respondents who were full-time employees were more likely to be aware of wellbeing programs offered in the workplace (74 per cent), compared to 59 per cent of respondents who were part time or casual employees.
• Sonder’s Medical Director and Specialist Physician, Dr Jamie Phillips, said that Australians were making impossible compromises to the detriment of their overall health.
  • “People are having to make difficult health-purchasing decisions and are priortising their basic human needs, such as paying their rent or mortgage, over paying for prescriptions or seeking medical care,” he said.
  • “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. This 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,” he said.
• Dr Phillips added that diverse groups— including women, LGBTQ+ employees, First Nations, people of colour, and working-class families were struggling the most.
  • “We know that people within specific social groups have greater exposure to more challenging work environments, such as physically-demanding jobs, shift work, and precarious and insecure employment,” he said.
• Dr Phillips said that the link between mental, financial, and physical wellbeing is well documented, but modern healthcare tends to view an individual’s health and wellness as a series of individual components.
  • “The latest Government report into Australia’s mental health services states that people living with mental illness are more likely to develop physical illnesses and die earlier. Research suggests that just 14 per cent of this gap in life expectancy can be attributed to suicide, while almost 80 per cent can be attributed to physical health conditions,” he said.
  • “The Government acknowledges that the reasons why people living with mental illness are more likely to develop physical illnesses are complex. But factors include reduced access to and quality of healthcare due to financial barriers, alongside stigma and discrimination among healthcare providers.”
• Dr Phillips said that systemic healthcare issues, including the separation of mental and physical health services, may also lead to physical illness among people with mental illness.
  • “The report also highlighted a lack of capability among both generalist and specialist healthcare staff to deal with complex comorbidities,” he said.
  • “It’s clear that we need to invest in more personalised, holistic, and preventative approaches to care that consider a person’s cognitive, emotional, social, physical, financial and spiritual wellbeing at all times.”