A new report by the Bankwest Curtin Economics Centre has revealed that young Australians are feeling the squeeze from financial pressures, worsening mental health and declining trust in political institutions, with concerns about the cost of living now topping their list of priorities.
Released today, the Youth in Focus: Navigating Wellbeing in a Changing World report draws on insights from young Australians aged 14 to 25, highlighting their biggest challenges and what they want to see change. While cost of living, education and mental health were identified as key concerns, the report also finds young people are leading the way in tackling social issues, such as calling out discrimination, racism and gender bias.
Professor Astghik Mavisakalyan , report co-author and Principal Research Fellow at the Bankwest Curtin Economics Centre said the findings underscore the urgent need for policies that better support young Australians.
"Young people today face financial stress, rising HECS debts, mental health struggles and uncertainty about their future," Professor Mavisakalyan said.
"Mental health issues among young women have worsened significantly over the past decade, with three in ten experiencing high or very high psychological distress – double the rate of their male counterparts. At the same time, social connectedness is deteriorating, despite the prevalence of social media, which is leaving many young people feeling isolated and unsupported."
The report shows cost of living pressures have skyrocketed to become the most pressing issue for young Australians, with one third citing it as a personal concern and more than half (56 per cent) listing it as one of the biggest challenges facing the country.
Professor Mavisakalyan said the impact of social media on mental health remains a growing concern.
"Our research shows that more than a quarter of young people who frequently use social media experience serious anxiety and stress," Professor Mavisakalyan said.
"The Federal Government's proposed national social media ban is an unprecedented experiment that could help counter negative impacts on young people. However, there is also a real risk of unintended consequences and any restrictions must be carefully evaluated to ensure they don't cause harm, particularly for vulnerable groups."
The report also shines a light on growing frustration with Australia's higher education system, particularly with policies such as the current HECS-HELP structure and the Job-ready Graduates Package which findings suggest are unfairly burdening young Australians.
Report co-author Professor Mike Dockery from the Bankwest Curtin Economics Centre said the HECS system has drifted away from its original intent to provide fair and equitable access to higher education.
"Many graduates today face mounting debt, lower take-home pay and increased financial stress compared to previous generations," Professor Dockery said.
"The Job-Ready Graduates Package, which determines course fees based on predicted workforce demand, is flawed and is creating a generational divide. Our analysis finds no real link between course costs and future employment outcomes, meaning students are being penalised for choosing courses that may actually be vital to Australia's future workforce needs."
Despite a slight decline in climate change ranking as a top priority, the report finds young Australians remain committed to environmental action. Three-quarters still want environmental protection prioritised over economic growth and 86 per cent of 18 to 24-year-olds see climate change as a key voting issue.
However, the report also highlights young Australians' growing disengagement from politics, with just one in eight expressing trust in the political process.
Professor Dockery said young people want real action, not just promises.
"The upcoming Federal election will be a critical moment to re-engage younger voters. If political leaders fail to address their concerns - on cost of living, education, mental health and climate action - they risk further alienating an entire generation," Professor Dockery said.
The Youth in Focus report provides a comprehensive analysis of the priorities and perspectives of young Australians, offering key insights to shape future policy development.
