High employment offsets cost of living concerns

Share

Share

New NAB research shows record low unemployment rates are helping Australian consumers better cope with concerns around the cost of living.

While NAB’s Consumer Stress Index has increased for the second straight quarter to 56.4 pts in Q2 2022, from 55.7 pts in Q1, overall stress remains lower than a year ago (57.8 pts) and is well below the survey average (58.7 pts)*.

NAB Economists attribute the overall reading being below 2021 levels to the high levels of employment being experienced across Australia. The research showed that stress related to job security eased further to a four-year low of 41.4 pts.

NAB Group Executive for Personal Banking, Rachel Slade, acknowledged that there are some individuals who may be feeling the cost-of-living pressures.

“When we look at our customers, as a whole they are in a really good position right now – in fact 70% are ahead on their mortgage payments giving them financial flexibility,” Ms Slade said.

“We also know though that having job security is critical to relieving household stress – the high rate of employment in Australia right now is doing a lot to put people at ease.

“As a bank we’ve never been in a better position to help. The establishment of our NAB Assist team in 2016 together with some smart analytics means that we are able to quickly identify those customers who may need our help so we can get in touch with them.”

“There are many things we can do to help from discussing flexibility around home loan payments to providing tailored budgeting tools. And we are seeing many customers make their own adjustments – 40% of Australians are now creating and following a budget which is brilliant.”

NAB Assist is a specialised team at NAB designed to provide customers experiencing financial difficulty with additional care. NAB Assist has received international recognition, appearing in Fortune magazine’s “Change the world” 2016 list – the first Australian company to have been recognised for their work in financial hardship.

With the recent increase in interest rates, the NAB team offer the following considerations for customers looking at how to manage their home loan repayments:

  1. Consider an offset – linking an offset account to your variable rate home loan helps you pay off the loan faster
  2. Line up your costs – adjusting your repayments can help to manage your budget and align your direct debit on the same day you receive your salary. If you’re ahead and want to decrease your home loan repayments, talk to us so we can help you with that change
  3. Build in flexibility – fixing the interest on all or part of your loan can give a period of repayment certainty. If you split your loan between fixed and variable rate you will still have flexible features like offset available
  4. Take advantage of offers in the market – for example, you can claim $2,000 cash when you refinance your existing home loan to NAB.

Customers, banking & finance

SEE ALL TOPICS

Media Enquiries

For all media enquiries, please contact the NAB Media Line on 03 7035 5015

Related Articles

  • Business

Businesses amp up green investments with electric vehicles and solar panels topping the shopping list

New data from Australia’s largest business bank shows many small and medium sized businesses are continuing to invest in new or used energy efficient equipment, with the value of the bank’s Green Finance for Vehicles & Equipment loan book growing 80% compared to the same period last year.

  • 13.06.2024
  • Time to read 2 min read
  • Scams

Aussies travelling abroad warned about international summer of scams

Australians heading overseas to chase a European or North American summer are being urged to get scam savvy to avoid a holiday from hell. Criminals are expected to target major sporting events and big international concerts, just as hundreds of thousands of Australians and their families prepare to jet off overseas.

  • 06.06.2024
  • Time to read 3 min read
  • Media Release

Families now the top users of no interest loans

More than 42,000 no interest loans have been issued in the past year by Good Shepherd and NAB, up 19% on the previous year, as Australians face cost of living pressures.

  • 31.05.2024
  • Time to read 3 min read

Quick links

Business Research and Insights

For more business news and analysis, visit NAB’s Business Research and Insights .

NAB Security Podcast

For more insights about cyber security and fraud, and practical tips on how to stay safe, listen in to NAB’s Security Podcast series.

NAB tech blog

For more insights about technology and the digital developments enabling change for customers, visit the NAB tech blog on Medium.