For decades, successive governments have kept unemployment payments in Australia below all accepted measures of adequacy – JobSeeker now sits at just 41% of the minimum wage, and Youth Allowance is even worse at 34%.
The results of this are clear in recent official data on death rates and our latest Raise the Rate survey of people on income support.
Of the 1,560 people that responded to our survey, most of whom receive JobSeeker, about half can’t afford enough fresh vegetables, fruit and meat. Medicine and medical appointments are unaffordable for about three quarters of respondents.
Beyond food and medicine, inadequate income support left nine in 10 respondents socially isolated, with some describing themselves as not living, but merely existing. Others described the deep shame and stigma they felt of living in poverty.
People receiving income support in Australia are likely to eat poorly and lack medical care or social support because they do not have enough money.
Shocking new data from the Australian Institute of Health and Welfare (AIHW) released this month shows that people are also more likely to die.
The mortality rate for people receiving working-age payments was more than nine times that of the broader population in the 11 years to 2022. Three in five people aged 22-64 who died between 2012 and 2022 received an income support payment such as the Disability Support Pension or JobSeeker.
For people receiving a working-age payment, ‘deaths of despair’ were well above that of others in the community. Accidental poisoning deaths, including overdose and alcohol poisoning, occurred at 22 times the rate in the broader population, while deaths from alcoholic liver disease occurred at 21 times the rate. People receiving income support had a suicide rate five times higher than the general population.
Only some of this disparity may be explained by the circumstances that lead people to rely on a payment. People with a terminal illness, for example, may qualify for the Disability Support Pension, and the highest mortality rate was found among people receiving this payment.
However, the death rate for people receiving unemployment payments was four times that of the broader population, with suicide, accidental poisoning and coronary heart disease the three leading causes of death. More than 36,000 people receiving unemployment payments died in the 11 years to 2022.
Furthermore, the mortality rate for people receiving unemployment payments has been steadily increasing since 2012, rising by 47%; a trend not seen among other populations.
What is going on here?
Between 2012 and 2022, the number of people receiving unemployment payments long-term doubled – from 300,000 to 600,000. In other words, a lot more people are having to live on a totally inadequate income support payment for a long time.