Inflation crisis – financial problems block the future of more and more young people

The extent to which the financial situation determines the reality of young people’s lives and opportunities is serious. This is also evident from this year’s AK Youth Monitor, which examines how social inequality affects the daily lives and mental health of young people. For this purpose, study author Martina Zandonella divided the 1,200 respondents aged 16 to 29 into three economic clusters. Each cluster represents a group. There are the top 30, the middle 40 and the bottom 30 percent.

The bottom third is in a very difficult situation
The top 30 percent are doing very well with the resources available to them. Of this group, two-thirds receive financial support from their parents and 64 percent have an inheritance that exceeds the value of a house. In the middle cluster, just over a third of respondents receive financial support from their parents. More than half of this group also have an inheritance that is equivalent to a house. In the lower cluster, things don’t look so exciting. Here, only eight percent have any inheritance at all, and just under fifteen percent receive financial support from their parents.

Significant savings necessary
All three groups have to save, but not the same amount. All three groups had to implement the greatest savings measures in and around leisure planning. However, 50 percent of the top 30 percent are less affected by this than in the lower cluster. Here, four fifths of the people had to take drastic savings measures. Particularly dramatic: around one fifth of 16 to 29 year olds in Austria even had to go into the red on their bank account and got into debt as a result. Many people have also had to make further savings in the past twelve months when it comes to shopping, holiday planning and going out.

Great fears for the future
Young people are plagued by strong fears about the future. One point that is often mentioned is your own financial situation. The focus is on fear of money problems, debts and housing costs. But that is not all. The fear of failing in education or career also leads to worries about not getting a safe and good job. In addition, the fear of not being able to achieve one’s own goals is always central. Many young people also complain about the pressure to perform at school, during education or at work. Another concern concerns health, especially mental health. This goes hand in hand with the fear of global crisis events. The climate crisis and the war in Ukraine are mentioned time and again.

Little confidence in political institutions
The young respondents hardly feel represented in parliament, according to the youth monitor. Less than half see that their interests and concerns are taken seriously by one of the parties. This can also be explained by the fact that the feasibility of their own plans and goals is becoming increasingly uncertain. Young people are no longer certain whether it is even possible for them to build something for themselves through work in order to be able to participate in society.

Requirements of the Chamber of Labor
The Chamber of Labor has developed a number of approaches to solve these problems. They call for improvements in education and training to prevent or reduce school dropouts. They also want to enforce a minimum student income of 1,000 euros and ensure an expansion of career guidance. Another desired point is the creation of affordable housing. Rent ceilings and subsidized housing should also make it possible for young people to find affordable housing. And ‘participation in life’ should also be made possible by things like lowering food prices, affordable public transportation and fully funded psychotherapy for young people.