Loneliness: The silent epidemic costing Australia billions

Exacerbated by the pandemic, loneliness is resulting in numerous health and financial ramifications for Australians all over the country.

“Although most Australians will experience loneliness in their lifetime, it remains a widely misunderstood, under-recognised, and poorly addressed issue in Australia,” according to Martin Blake, chairman of Groundswell, which, along with KPMG, produced the Connections Matter report aimed at illuminating the extent of the issue across the country.

According to the report, more than one-quarter of Australians are lonely, rising to 37 per cent among young people. These figures are hard to imagine in an interconnected and social-media-dominant global landscape, yet they represent a changing reality, especially since the COVID-19 pandemic began.

Over half (54 per cent) of people are lonelier after the pandemic, placing an increased risk of poor health on this proportion of the population. Lonely people have a 26 per cent increased risk of death, while the impacts of loneliness are akin to smoking cigarettes or having six alcoholic drinks per day.

With over 5 million Australians impacted by it each year, KPMG mental health advisory leader Andrew Dempster explained that “loneliness is a public health issue that many Australians identify with”.

“However,” he added, “it’s a risk of being trivialised because its impacts remain widely unrecognised. There is robust evidence to suggest that loneliness is detrimental to physical and mental health and can have profound socioeconomic impacts”.

This is despite the Connections Matter report putting the annual healthcare cost of loneliness to the Australian economy at $2.7 billion — roughly $1,565 per person per annum. Moreover, mental health issues that can be linked to loneliness, such as depression, cost the economy an estimated $60 billion yearly.

Furthermore, economic modelling conducted by the Australian National Mental Health Commission in 2019 found that the return on investment for every $1 invested into loneliness-addressing programs ranges from $2.14 to $2.81.

Despite its wide-reaching grip, certain demographics experienced loneliness more than others. Between 37 per cent and 50 per cent of young adults aged 18-24 reportedly feel its impacts, while single parents, older people, and people who live alone are also at higher risk.

When pitted against national averages, First Nations people, those who identify as LGBTI, and migrants experience greater levels of loneliness.  

Additionally, Mr Dempster disclosed, “loneliness also has a negative impact in the workplace, affecting both employees and employers”.

Workplace loneliness can be attributed to a range of issues, including reduced job and team performance, decreased productivity and organisational commitment, as well as poorer staff retention and increasing workplace errors.

Research organisation Gallup recently compiled a report highlighting that since the dawn of the pandemic, “there has been an even stronger relationship between having a best friend at work and important outcomes such an employees’ likelihood to recommend their workplace, their intent to leave, and their overall satisfaction with their workplace”.

Similarly, the National Mental Health Commission emphasised the importance of communities in maintaining strong mental wellbeing. Connections2022, a report conducted by the commission prior to World Mental Health Day in October, outlined: “Fundamentally, it is our local communities who are most trusted and have the power to support our social and emotional needs.”

This claim was ratified by the Connections Matter report, which detailed that “both social and built environments have the potential to positively influence loneliness outcomes”.

“As such, place-based approaches that leverage existing infrastructure, built environment, community networks and services are essential to ensure solutions are fit for purpose and meet the needs of communities,” it said.

Additionally, the Connections Matter report recommended three critical actions needed to address Australian loneliness. One such action is collaboration in policy directions across national, state, and local levels to raise awareness of loneliness as a priority and enact targeted action.

Further, the report advised communication to activate stakeholders from “public, private, and not-for-profit organisations to embed loneliness as a priority issue and take targeted action”.

Adding that progress tracking, described as “[building] the evidence base for loneliness and interventions in Australia through dedicated data collection, research, and evolution”, is the final step to addressing loneliness.

Mr Blake concluded: “As we progress beyond the COVID-19 pandemic, lockdowns, and isolation restrictions and face an unprecedented period of global economic uncertainty, it is now more important than ever for all levels of government to address this critical social and health issue.”