Australia, once known as the “lucky country,” is facing unprecedented challenges as its citizens grapple with a high cost of living, a choppy labor market, and rising inequality. For nearly three decades, Australia seemed to have a get-out-of-jail card that allowed it to avoid recessions, but the Covid-19 pandemic in 2020 changed that.
Now, four years later, Australia is struggling to shake off the headwinds that have left millions of residents experiencing levels of hardship not seen in many decades. Rising prices for essential goods like bread, soaring inflation, and skyrocketing rents are putting immense pressure on working families.
Robyn Northam, a 28-year-old content creator in Cairns, is one of many Australians feeling the pinch. She once dreamed of becoming a hairdresser, but rising rent and child care costs have made training out of reach. The reality facing many young Australians is that they will be worse off than their parents or grandparents.
Economists have long argued that too much Australian wealth is tied up in the housing market, leading to a shortage of affordable rentals and pushing young people out of cities. The high cost of living, troubling global politics, and rising inequality have contributed to the lowest levels of “life satisfaction” in 22 years.
Despite its wealth and stability, Australia is not living up to its ample potential, according to experts. The country’s wealth is increasingly unevenly distributed, and economic and generational strains are taking a toll on its citizens.
As Australians grapple with these challenges, the notion of the “lucky country” is being reexamined. Even those who own their homes outright, like Tracey Shepherd in Surfers Paradise, Queensland, are feeling the squeeze of the high cost of living. Life in Australia, once seen as a paradise, now feels precarious for many.
