Financial distress

What does the evidence tell us about the link between suicide and these drivers of distress?

The association between economic factors and health outcomes are broadly accepted across the research, with economic factors understood as established and critical social determinants of health. More specifically, the impact of economic factors on mental health and suicide is being increasingly understood. Economic factors can have a negative effect on mental health and increase suicidal distress at both an individual and societal level, which includes barriers to accessing support, unemployment, cost of living, financial hardship and economic crisis/recession.¹

There are a few different theoretical models outlined in the literature that describe the relationship between economic factors and suicidal behaviours and ideation. The most prominent models describe two main differences in the relationship. The first describes how economic factors impact on an individual’s experience of stress, mental health concerns and ultimately suicidal distress. The second describes how an individual’s mental health concerns or vulnerability to mental health concerns increase the likelihood of financial stress and insecurity (either directly or indirectly), exacerbating symptoms and in turn leading to suicidal distress.1 It is clear within the literature that these relationships are complex and there are often other risk factors evident that lead to suicidal distress.

Suicide Prevention Australia's State of the Nation Survey 2023 found that distress associated with cost of living, personal debts and housing affordability were seen as the top social risk factors for suicide for the following year. These findings were supported by Suicide Prevention Australia's Community Tracker reports released in March and June 2024, where it found 50% of Australians reported elevated cost-of-living and personal debt distress beyond normal levels.

Data released by the Australian Institute of Health and Welfare (AIHW) from National Suicide and Self-Harm Monitoring System (the System) has shown that lower income, lower levels of educational attainment, and being unemployed or not participating in the labour force, are each associated with a higher risk of suicide.

Mental Health Australia’s Report to the Nation 2023² highlighted how rising cost of living pressures are impacting on the mental health of Australians. 58% of study participants reported that rising cost of living is having a big impact on their mental health and 21% identified that cost is a barrier to them receiving mental health support.

What does this mean for policy and practice?

Research into socioeconomic factors that contribute to suicidal distress can provide vital information to improve understanding of suicide, highlight where further investigation and evidence are needed, and provide insights into where suicide prevention efforts can be focused. Understanding risk and protective factors for suicide is crucial in the development of suicide prevention policy and strategies. It is important to understand these risk and protective factors at both the individual and societal levels.

Suicide prevention policy and practice should:

• Consider economic determinants of health and the impact on individuals and populations in relation to suicidal distress.
• Consider impacts of the rising cost of living and implement policy and strategies to reduce impacts on individuals and communities.
• Target upstream socioeconomic factors in public policy including financial education, vocational rehabilitation, job retraining, increasing the minimum wage and improvements to homelessness services.³
• Include population level interventions such as unemployment benefits, employment protection legislation, higher minimum wage and active labor market programs.¹
• Include early distress interventions to prevent people reaching a crisis point. These initiatives should utilise governments and partnerships with other agencies to develop the workforce and embed services to meet people where live, work and connect.
• Consider the complexity of socioeconomic disadvantage and acknowledge the diversity of experiences and circumstances among people experiencing financial hardship in Australia.

Ultimately, a whole-of-government and whole-of-community approach is needed to address factors that contribute to suicidal distress. These approaches must include people with lived experience at every stage of development and implementation. The right structures and enablers must be in place to achieve this.