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Monday, July 13, 2020

Australians' wellbeing improves on eased restrictions

The 7th ABS Household Impacts of COVID-19 Survey reported that the wellbeing of Australians had improved following the easing of social distancing restrictions, though the survey period (24-29 June) largely pre-dates the rise in Victorian virus cases and subsequent shutdown of Melbourne. The other main finding was that Australians were taking fewer health-related precautions in June compared with May, but again this could be at risk of reversing if concerns over the virus in Victoria reverberate more broadly.

The 3rd edition of this survey (for the period between April 29 and May 4) quantified the stress-related impacts of the COVID-19 pandemic on Australians. The good news is that this survey reported an easing in these tensions to what might be considered 'normal levels' as per the 2017-18 National Health Survey, though an elevated sense of nervousness does appear to be a unique consequence of this pandemic. 


Source: ABS

In terms of the types of stress that have been encountered by Australians, we see a clear improvement compared with what was reported in Survey 3. The largest improvements came from a reduction in loneliness to 9% in June from 22% in April, while only 8% now reported difficulty in maintaining a healthy lifestyle compared to 19% in April. Recall that Survey 6 identified signs of improvement in household finances (see here) and this was backed up in this latest edition with concerns around mortgage and 'other financial stress' declining from what were already low levels. The rate of mortgage stress fell from 4.2% to 1.4% in June and 'other financial stress' eased from 9.5% to 7.8% over the month. Rental stress ticked up very slightly from around 3% to around 4% but remains low overall. Somewhat surprisingly given the damage that has occurred in the labour market, anxieties around being unable to get a job was also low at around 4%, virtually unchanged over the month.   


Source: ABS

The other main change that the easing of restrictions brought on has been the relaxation in the level of precautions that Australians are taking. This was most evident in the rate of avoidance of social gatherings that fell to 66% in June from 79% in the month prior. More people were now comfortable in accepting home deliveries (27% from 20%) and less likely to avoid public spaces (66% from 79%). Some 92% of Australians still believed they were socially distancing and the practice of disinfecting surfaces has now become commonplace. Overall, the results suggest that while the extent of precautionary behaviour may have reduced, concerns around the virus are still front of mind for many. Clearly, this would be accentuated in Victoria given recent developments, but this could also have spillover impacts in the other states. 

Source: ABS 

Today's survey also shone some light on how the pandemic has changed the way in which Australians are spending their time. This is best conveyed by the increased level of participation in June compared with pre-pandemic times in personal screen time (+44%), time with pets (+35%), cooking and baking (+34%) and online shopping (+33%). These could well be long-term shifts in behaviour with the pandemic not appearing likely to abate any time soon.

Source: ABS

There has also been a shift in terms of people's diets with the survey showing that when compared to pre-pandemic times, consumption of takeaway meals, snack foods and alcohol have all increased markedly, particularly in the 18-64 age bracket. 

 Source: ABS