Young Australians are experiencing a sharp decline in mental health and cognitive performance, even as government support programs reach fewer people, according to new data from the nation's longest-running household survey. The findings reveal a troubling gap between the struggles of younger generations and the improving conditions for older Australians.
The Household, Income and Labour Dynamics in Australia survey, which has tracked more than 17,000 people annually since 2001, released its 2024 data showing self-reported mental health for women across most age groups has declined over the past two decades. The drop's been particularly severe for young women aged 15 to 24. Men show similar patterns, with younger age groups reporting declining mental health across decades, though their levels remain higher overall than women's. Only men aged 65 and over bucked the trend, reporting improved mental health.
Cognitive Performance Drops for Youth
In cognitive tests administered by the survey, average performance declined for Australians aged 15 to 24 in both the backwards digits span test and the symbol digits modalities test. Older Australians performed better on those tests compared with 2012, and those aged 45 and older did better on average on both tests across time. The divergence between generations raises questions about what environmental or social factors might be undermining young people's development during critical years.
The proportion of young people living with their parents has climbed since the turn of the century, with the increase greatest for 18- to 21-year-olds, lifting to 85 per cent. Most of that growth happened up until the mid-2010s and has remained fairly stable since, suggesting structural barriers to independence haven't eased even as the economy has evolved.
Parental Leave Gains Amid Broader Challenges
There's at least one bright spot in the data. Women took more than four months of paid parental leave on average in 2024, while fathers took four weeks. The increases could be due to the federal government extending paid parental leave during this period, demonstrating how public policy can directly improve family outcomes when it's properly funded and expanded.
The percentage of people with a university degree has risen across decades for all ages and genders, but it has risen much faster for women, with the biggest gender gap emerging in the 35-44 age groups. Yet average hourly earnings for workers have risen since 2001, despite a surge and dip around the COVID-19 pandemic due to changes in working hours, but the gender pay gap has persisted, with women earning less on average. Educational gains haven't translated into pay equity.
Economic Insecurity on the Rise
A smaller share of Australians are receiving government income support payments, with about 13 per cent of 18- to 64-year-olds receiving income support, down from 24 per cent in 2001. Australians aged 65 and over rely more on benefits, but that share has also dropped across the survey period. The decline in support comes as other measures show growing need.
The share of Australians over 15 who experienced food insecurity increased in four years, with more people reporting they could not obtain adequate food in the past year because of a lack of money. Housing stress has consistently been higher for single parents with children, but it has also surged for single older men and couples with children in recent years. These indicators suggest the social safety net isn't keeping pace with actual hardship.
The percentage of people above the at-risk threshold for problematic social media use was greatest for teenagers and steadily declined across older ages. Relationship quality increases with age, but not before it drops in the 30s and 40s, and women consistently report lower relationship quality than men across their lifetimes. Even at the lowest point for women, the average rating for relationship quality is about four out of five.
Why This Matters:
The survey reveals a generation of young Australians facing compounding disadvantages—deteriorating mental health, declining cognitive performance, and economic pressures that keep them living with parents well into their twenties. While older Australians report improving wellbeing and government support reaches fewer people overall, food insecurity and housing stress are climbing. The data shows public investment can work, as expanded parental leave demonstrates, but it also exposes where policy has fallen short. Women's educational gains haven't closed the pay gap, and the safety net appears inadequate for families struggling with housing costs and food access. These aren't isolated problems but interconnected challenges that demand comprehensive policy responses addressing mental health services, affordable housing, income support adequacy, and workplace equity. The diverging fortunes between generations suggest Australia's social compact needs urgent attention.