We were happier during the COVID-19 pandemic. The reason is money

Australians reported higher life satisfaction during the strict COVID-19 pandemic lockdowns of 2020 than they do now, according to data from the Australian Bureau of Statistics (ABS).

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We're feeling worse about the world today than we were during the pandemic lockdowns.

Urban economist Terry Rawnsley of KPMG Australia noted that life satisfaction scores in 2020 averaged 7.2 out of 10, slightly higher than the 7.1 recorded last year. He attributes the decline to increasing financial pressures, stating that real wages are lower than in 2020, household wealth has remained flat, and per-capita spending is stagnant. This financial strain, he explained, diminishes people's satisfaction with their lives.

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When you look at life satisfaction on a scale of one to 10, in 2020, when we're in the middle of the pandemic, life satisfaction was 7.2 out of 10. Last year, it was 7.1.

While the pandemic brought uncertainty, curfews, and isolation, it was not marked by the same level of cost-of-living stress. The federal government's substantial financial support during the early stages of the pandemic, including doubled welfare payments and the JobKeeper scheme, helped mitigate financial hardship. In contrast, the current economic climate presents "larger burdens" for many Australians, making life feel more challenging despite the absence of pandemic-related restrictions.

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There was uncertainty for sure. But it wasn't kind of the cost-of-living crunch that we're seeing now.