Australians are entering 2026 with a markedly darker outlook on their standard of living. Against a backdrop of persistent inflation, ongoing interest rate uncertainty and global economic volatility, more people now expect their circumstances to worsen (37%) than improve (23%) in the year ahead.
Cost of living remains the dominant pressure point, with seven in ten expecting rates to rise further by year‑end. This financial unease is spilling into the workplace, where one in five workers report low confidence in their job security, a sentiment that mirrors recent headlines about corporate restructures and slowing economic growth.
There’s also a growing concern about social cohesion, with only 33% rating it as ‘good’ or better, and only one in ten anticipating improvements over the next 12 months. When asked what can be done to improve social cohesion, nearly half (44%) suggested a mix of unification actions including community events, campaigns and diversity education as well as expectations that media and politicians drive cohesion rather than division. Smaller numbers suggested tightened controls at a systems-level, such as tighter background checks and penalties for hate speech, as well as a more sustainable immigration policy with appropriate support for new migrants.
In light of these growing economic and social cohesion concerns two thirds of the nation now believe Australia is heading in the wrong direction, a record high.
Improvements in the national mood seen in 2025 have been wiped out, with 56% feeling more negative than positive, up from 51% in November last year.
By far the most commonly cited reason for supporting One Nation was the desire for an alternative to the major parties, followed by support for reduced immigration and stronger borders and the belief that the party is standing up for Australia’s best interests.
The number of Australians who think our social cohesion is ‘good’ or better has fallen since November, returning to the lowest point recorded over the last 18 months (33%).
Contact us for more information about the full Mood of the Nation research report or if we can help you navigate community or stakeholder sentiment or expectations.
Peter Collingridge, Director, SEC Newgate Research – [email protected]
Sue Vercoe, Managing Partner, SEC Newgate Australia – [email protected]
Kathy O’Donoghue, Senior Adviser, SEC Newgate Australia – [email protected]
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