Social Research ¦ Market Research ¦ Behavioural Insight ¦ Evaluation ¦ SROI
Social Research ¦ Market Research ¦ Behavioural Insight ¦ Evaluation ¦ SROI
As part of our on-going Research with a Purpose omnibus, in October 2022 and April 2023, we included a series of comparable questions to monitor the ongoing impact of the Cost of Living Crisis. These questions focused on the crisis’s effects on working life, social life, overall wellbeing, and mental wellbeing.
As a broader context, in April 2023, 97% of respondents stated that they were very worried, worried, or a little worried about the rising cost of living. Many expressed concern about the current price of energy (84%) and the general increases in the cost of living (85%).
Compared to October 2022, agreement with metrics measuring the impact of the rising cost of living on work have increased in April 2023.
Almost a third of respondents stated that they were increasing their weekly working hours (32%, +3% from October 2022). This proportion was significantly higher in Greater London (41%), among younger people aged 16-24 (42%) and 25-34 (41%), and ethnic minority groups (44%). Conversely, those aged 54-64 (19%) and those in Scotland (19%) were the least likely to be increasing their working hours.
This age trend matches patterns seen in other studies, suggesting that younger people are more likely to be renting and have fewer savings compared to older people. Therefore, they are more likely to feel the negative impact of the rising cost of living (YouGov, 2023). While some are increasing their working hours, 11% are doing the opposite – reducing their hours for reasons such as childcare. A higher proportion of those aged 25-34 (19%) state that they are cutting their hours due to rising costs, along with those in the Greater London area (21%).
Out of the 750 responses received in this wave, 41% stated that they have started to search for a similar job to their current role but with higher pay. This is 6% higher than October last year. This proportion rises to 52% among those aged 16-34, yet falls to 20% of those aged 55-64, again showing a split in responses to the crisis by age.
Related to this, 43% of the total are considering a career change as a result of the crisis. This sentiment is more prominent among those living in the East Midlands (56%) and those aged 25-34. Those living in the East of England (24%) and South East England (31%), or aged 55-64 (22%), are the least likely to be thinking about starting a new career in a different field.
This wave has seen a decrease in the number of people who state they are less willing or able to take part in work social events, though it still sits at about 2 in 5 respondents (41%, compared to 43% in October 2022). When comparing the likelihood of taking part in work social events, there appears to be a difference between males and females, with women being more likely to say they are less willing/able to take part in work socials than men (45% and 36% respectively). The fact that 41% feel less willing or able to take part in work could be a result of decreased discretionary income. When looking at the total responses, 43% claimed to have made cuts to spending on social activities as a result of the crisis.
Looking at the emotional or mental impact of the rising cost of living, 43% reported feeling reduced motivation or morale at work, up from 41% in October 2022.
This sense of reduced motivation or morale is felt more acutely by women than men (47% and 37% respectively), and is understandably higher among those who report they are worried about the cost of living (44%), those who report poor health (59%), or poor mental health (56%). Almost 2 in 5 (37%) say that the cost-of-living crisis is making it harder to concentrate at work, with significantly higher numbers among people who report poor mental health (51%) or poor physical health (61%) compared to those who report good mental (30%) or physical health (24%). The proportion of the total population stating that they are finding it harder to concentrate/focus at work is slightly higher than in October 2022 when it was 34%.
Looking at the overall impact on mental health, in April 2023, almost half (49%) of the respondents reported that their mental health had been impacted by the rising cost of living, up from 45% in October. Given that those who rate their current mental health as poor are more likely to state that their concentration or motivation has been impacted by the cost of living, it is clear that concerns about rising costs permeate multiple aspects of life and have wide-reaching, cyclical effects.
Overall, it appears that compared to October 2022 – an already high base – there have been limited changes in behavior, with proportions of individuals increasing their hours or experiencing reduced morale/focus staying largely stable. There have been increases in those looking for higher pay in similar roles (+6%) and those considering career changes (+4%), which could be trends to watch in the future. The proportion of individuals who are less willing or able to take part in work socials has begun to fall, which could be the start of a new trend as people adjust or change priorities in spending as the weather changes. However, the proportion still sits at 41%, so it is not insignificant.
