Australians are increasingly less satisfied with their lives

The Australian Institute of Health and Welfare (AIHW) has released its annual report on Australia’s wellbeing.

It shows Australians’ satisfaction with their lives is declining, and two in five have recently felt loneliness.

The AIHW draws on data from the Australian Bureau of Statistics and various national surveys to track how well Australians are living.

Here’s a breakdown.

Wellbeing

The AIHW cited a poll from ANU which showed around 40% of Australians reported experiencing loneliness at least some of the time in April 2025, up from 35–37% in 2023.

On average, Australians rated their life satisfaction 6.5 out of 10 in 2025, declining from a recent peak of 7.0 in 2021.

Employment

Australia currently has a low unemployment rate, though the latest ABS data shows it is trending upwards.

The AIHW found the overall growth in employment was driven by increasing women’s workforce participation, which has risen from 46% in 1978 to 74.4% in June 2025.

However, employment gains haven’t always translated into financial security. Around one in five people aged 15 and over reported experiencing financial stress in 2023, the highest level since 2012.

Housing

The AIHW said housing is a major issue, calling it “central to the health and wellbeing of individuals and families.”

It found housing is a key concern for young Australians.

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In 1971, 50% of people aged 25–29 owned a home, compared to 36% in 2021.

An estimated 1.26 million low-income households experienced housing stress in 2024/25, meaning they spent more than 30% of their income on housing.

Ageing

The report found Australia’s ageing population is reshaping welfare demands.

The number of people aged 65 and over has grown from 2.1 million in 1994 to 4.7 million in 2024. The group is projected to make up 24% of the population by 2064.

More people are now using in-home care than residential aged care, with 275,000 using home care in 2024, up from 142,000 in June 2020.

Education

The AIHW cited findings that Australian students record higher-than-average scores across science, reading, and maths on international tests.

Over the last decade, the proportion of people with a Year 12 or equivalent qualification has increased, with 79% of people aged 15–74 having finished school.

However, school attendance is slipping. Rates have declined since 2015 for students in Years 1–10, and have not returned to pre-pandemic levels.

First Nations

Between 2011 and 2023, the number of First Nations students enrolled in university increased from 11,800 to 23,300.

Employment has also improved. In 2022/23, 57% of First Nations people aged 15–64 were employed, up from 46% in 2012/13.

Despite these gains, several welfare gaps remain. The report found 41% of First Nations households had experienced food insecurity due to not having enough money for groceries in 2022/23.