The vast majority of Australians support immigration and multiculturalism despite more feeling poorer – and increasingly pessimistic and distrustful of government, the annual Scanlon report on social cohesion has revealed. This was reported by Qazaqyia.kz citing The Guardian.

People are more worried about artificial intelligence than climate change or going to war, but a global economic downturn and cost-of-living pressures are Australians' key concerns.

Economic pain is also changing the way people vote, with people suffering hardship jumping ship to One Nation, according to the report, which is one of the country's most extensive social research projects.

But, despite rising concern about antisemitism and Islamophobia, social cohesion in Australia has actually remained steady. The lead author of the report concedes many findings are cause for concern, but notes support for multiculturalism and diversity remains high, as does the sense of connection Australians feel to their communities.

"People are clearly under pressure with economic pressures, there's discontent and distrust, people are blaming immigration … but we don't necessarily see a permanence to that," said Dr James O'Donnell from the Australian National University.

"It's not just that people are getting angry generally. They're really under pressure and that plays out in different ways."

More than 10,000 Australians were asked 100 questions by the Scanlon Foundation on topics ranging from life satisfaction and financial circumstances to voting intent.

The report found happiness had declined most for millennials and generation Xers.

The headline figure, the Scanlon index of social cohesion, remained at 78 out of 100 – a consistent figure since 2023.

The philanthropy organisation calculates this number through data about Australians' sense of belonging, worth, social inclusion and justice, participation in society, and attitudes about acceptance.

"The really important stuff for social cohesion – the sense of belonging and acceptance – a lot of that is built into our daily life. There's a resilience to that; we're still volunteering, there's a high level of trust in the people around us and local communities," O'Donnell said.

But Scanlon concedes this headline number can "disguise" important shifts in individual numbers, including "increasing strain on Australia's social cohesion".

Despite the index remaining static, 62% of adults believe social cohesion has declined in recent years.

Nearly one-third of respondents expect their lives to get worse over the next four years. That's up from 29% last year.

While 79% of people said they had been happy in the past year – a number which has remained stable since 2021 – 48% said they were pessimistic about Australia's future. That figure is up from 43% in 2025.

The Scanlon report said happiness had declined the most for millennials (born between 1981 and 1996) and gen X (born 1965-1980).

"Since 2014, the proportion of Millennials who are happy or very happy declined from 84% to 75%, while the proportion who are unhappy or very unhappy increased from 16% to 25%. Among Gen X, the proportion who are unhappy or very unhappy increased from 19% to 23%," the report said.

"Across all generations, people are increasingly pessimistic about their future."

Cost of living was by far the most-cited issue facing Australia, with 36% of people rating it as their top issue. Housing affordability and shortages was second on 11%, other economic issues on 10% and immigration on 9%.

On a different measure, about "major issues" facing the nation, 77% of Australians were concerned about a severe global economic downturn.

Scanlon warned many Australians were facing financial stress in ways which were "likely harmful to social cohesion".

Some 20% of adults were unhappy with their financial situation. While 10% described themselves as "poor", 13% said they had gone without food at least sometimes, and struggled to pay their rent or mortgage on time.

About one in five reported they sometimes had to go without medicine or healthcare, could not afford to heat or cool their homes, or had to ask friends or family to borrow money. Another 16% said they'd had to sell possessions because they needed cash.

While the social cohesion index remained steady, several key measures of cultural diversity have eroded.

Negative attitudes toward Indian immigrants rose to 33% in 2026, up from 25% in 2024.