The Business Council of Australia (BCA) welcomes the opportunity to provide a submission to the Standing Committee on Social Issues regarding the Prevalence, causes and impacts of loneliness in New South Wales.

The BCA represents over 130 of Australia’s leading businesses, together employing over 1.1 million people, including in aged care, private health insurance, hospitals and pharmaceuticals. We support a stronger Australia that is competitive, productive, fair and inclusive, which fosters an economy that enhances economic participation for all Australians. This will support Australia’s national prosperity – now and for future generations.

Loneliness has both an economic and social impact. Evidence suggests loneliness impacts one in four Australians, with broader health care costs estimated at $2.7 billion per annum. It is widely recognised this is an increasing public health issue. But this issue must also be seen more broadly as it also has economic, social and cultural ramifications affecting individuals, communities and the economy.

There are many factors which appear to be increasing the prevalence of loneliness. COVID-19 exacerbated the problem as people were forced to be separated for sustained periods. In addition, an increase in the uptake of flexible working arrangements, including working from home, is reducing the direct connections people have traditionally fostered within the workplace. Other factors include the increased use of digital technology and an ageing population in Australia, with many people now living alone.

All stakeholders, including government, business and the community, have an important role to play to address the issue of loneliness, and in some cases, to make the necessary investment to reduce its prevalence.

Governments across the world are recognising this issue and have started to address it through a range of measures. A multi-faceted approach is required as it is a complex issue with different contributing factors and different groups or people to reach. There are certain populations more at risk, including older adults, First Nations people, people with disability and carers. Proposed measures need to specifically consider these populations.

Although governments are turning their attention to this public health issue, there is limited evidence to date on the effectiveness of interventions. This means, that while the New South Wales (NSW) Government should be learning from the experiences of other jurisdictions, there is a need for the Government to drive its own initiatives.

The BCA encourages the NSW Government to ensure the issues of loneliness and social isolation are at the forefront of policy development. The approach should be founded on the following principles:

• Clearly defining loneliness, social isolation and social connection, recognising they are unique concepts.
• Establishing initiatives specific to at-risk groups, acknowledging that a one-size-fits-all approach will not be the solution.
• Ensuring populations at risk are specifically considered during the development and implementation of the policies across government.
• Seeking commitment to a whole-of-society partnership between government, business and community.
• Driving cross-government co-ordination and prioritisation from federal, state and territory, and local governments.
• Fostering a cross-sectoral approach across health, social, economic and cultural sectors to prevent or limit the various causes of loneliness.

Read our full submission here.