The personal impact of Australia s current economic situation

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1 The personal impact of Australia s current economic situation Results from research carried out by The Salvation Army Australia Southern Territory in April & May 2009

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3 Research Summary The Salvation Army deals with the most marginalised people in our society. In the light of the worsening economic situation, we asked these people about the personal impact of Australia s economic situation on them. We asked people who request emergency financial assistance from us the following questions what they feel about the their financial circumstances, how they feel about the future, and what actions have they been doing different The results say 60% of people visiting community support services believe they are worse off or a lot worse off because of the financial situation; 48% of clients felt depressed about their own situation 53% have cut down on basic necessities; 58% have cut down on luxuries; 41% of clients are pessimistic or very pessimistic about the next 12 months; 22% of clients have experienced new conflict in their family because of the worsening conditions; 17% of clients said they have moved to more affordable housing ; 54% of clients felt stressed about the future; and 48% of clients felt depressed about their own situation. Some Conclusions Our analysis of the research is that people at the bottom of the economy, the people the Salvation Army have regularly contact with are facing the worst of the current economic situation and the negative psychological impact is greater on them. In comparison with members of the public, our clients feel less in control and more pessimistic about the future in light of the current economic situation. Our response to these people must also include more than just money. Survey Details The first survey, was an anonymous survey promoted on-line with access via The Salvation Army Australia Southern Territory (TSAAST) web site - www. salvationarmy.org.au. It had a 181 respondents. The second survey was held by 40 TSAAST Community Support Services across the country. Clients receiving assistance from these services in the survey period were invited to complete the survey. It has 1463 respondents. The survey was done between the 27 April and 4 May The survey design & analysis was carried out with the input of Swinburne University academic, Associate Professor David MacKenzie. The Salvation Army Australia Southern Territory May

4 Survey Question 1 Are people worse off? 60% of the CSS respondents said they were, compared 46% in the public survey; about 30% in both cases felt there had been no impact on them. The poorest people are experiencing the greater impact on their financial circumstances. 53% have cut down on basic necessities 2 The Salvation Army Australia Southern Territory May 2009

5 Survey Question 2 What do people feel about the future? - 41% of CSS respondents felt pessimistic or very pessimistic compared with 38% of public respondents; 30% of both groups did not feel any change; 26% of the CSS were optimistic and 31% of the public survey respondents were optimistic. Whether people feel optimistic or pessimistic is much the same for both groups. 22% of clients have experienced new conflict in their family because of the worsening conditions. The Salvation Army Australia Southern Territory May

6 Survey Question 3 What have people done in response to worsening economic circumstances? The first thing that most people do is cut down on luxuries 58% for CSS compared to 67% for general public. Interestingly poorer people do this somewhat less and maybe are less capable of managing what they have in their circumstances. Significantly, half the CSS respondents reportedly had cut down on basic necessities (53%) compared with the general public (20%). The CSS group feel more stressed (54%) compared to the general public (34%) and more depressed (48%) compared to the general public (19%). Looking through the comments made by the two groups CSS respondents express greater psychological impact bad mood swings, depressed, constantly stressed, bleak or can t cope; the general public respondents said more about their response and seemed more conscious of budgeting and being somewhat more pro-active on their own behalf. Poorer people on benefits are more affected, particularly in how they feel about the impact on them of the financial situation. They also seem less geared up to cope compared to people still working. 4 The Salvation Army Australia Southern Territory May 2009

7 CSS Survey - As a result of the current worsening economic conditions have you...? Other Actions / Comments Public Survey - As a result of the current worsening economic conditions have you...? Other Actions / Comments 54% of clients felt stressed about the future The Salvation Army Australia Southern Territory May

8 Survey Question 4 - Comments CSS Survey 4. Please record your comments (if any) on the impact on you personally, of the current worsening economic conditions? 6 The Salvation Army Australia Southern Territory May 2009

9 Public Survey 4. Please record your comments (if any) on the impact on you personally, of the current worsening economic conditions? The Salvation Army Australia Southern Territory May

10 Survey respondents details Respondent Gender Respondent State of Residence Respondent Employment Situation 8 The Salvation Army Australia Southern Territory May 2009

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12 For more information about this research contact Social Programme Department The Salvation Army Australia Southern Territory, 99 Railway Road, Blackburn VIC The Salvation Army Australia Southern Territory