High employment offsets cost of living concerns

National Australia Bank

New NAB research shows record low unemployment rates are helping Australian consumers better cope with concerns around the cost of living.

While NAB’s Consumer Stress Index has increased for the second straight quarter to 56.4 pts in Q2 2022, from 55.7 pts in Q1, overall stress remains lower than a year ago (57.8 pts) and is well below the survey average (58.7 pts)*.

NAB Economists attribute the overall reading being below 2021 levels to the high levels of employment being experienced across Australia. The research showed that stress related to job security eased further to a four-year low of 41.4 pts.

NAB Group Executive for Personal Banking, Rachel Slade, acknowledged that there are some individuals who may be feeling the cost-of-living pressures.

“When we look at our customers, as a whole they are in a really good position right now – in fact 70% are ahead on their mortgage payments giving them financial flexibility,” Ms Slade said.

“We also know though that having job security is critical to relieving household stress – the high rate of employment in Australia right now is doing a lot to put people at ease.

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