Nearly one in five Australian parents are providing substantial care for adult children who are not in employment, education, or training (NEET), according to new research that highlights the growing financial and emotional burden on families.
Scope of the Issue
The study, conducted by the University of Melbourne and published in the Journal of Sociology, found that 18% of parents with children aged 18–30 are the primary caregivers for those who are NEET. This equates to an estimated 400,000 families across Australia. The research defines care as providing financial support, accommodation, and daily assistance such as cooking, cleaning, and transportation.
Lead researcher Dr. Sarah Thompson said the findings reveal a hidden crisis. "Many parents are sacrificing their own retirement savings and mental health to support their adult children. This is not a short-term arrangement for many; it's becoming a long-term commitment," she stated.
Financial and Emotional Toll
The average financial cost to parents is estimated at $12,000 per year, with some spending over $20,000 annually. This includes direct costs like rent, food, and health insurance, as well as indirect costs such as reduced work hours or early retirement. The emotional toll is also significant, with 60% of caregiver parents reporting high levels of stress and anxiety.
"I never imagined I'd still be supporting my son at 28," said Margaret, a 55-year-old mother from Sydney who asked for her surname to be withheld. "He has a university degree but can't find stable work. We love him, but it's draining our savings and our relationship."
Reasons for NEET Status
The research identifies several factors contributing to the rise in NEET young adults. Mental health issues, including depression and anxiety, are the most common reason, affecting 40% of the group. Other factors include chronic illness, disability, and a competitive job market that leaves many graduates underemployed or unemployed.
Dr. Thompson noted that the COVID-19 pandemic exacerbated these trends. "The pandemic disrupted education and entry-level job opportunities, and many young people have struggled to bounce back. The safety net for them is often their parents, which puts immense pressure on family finances."
Policy Implications
The report calls for greater government support for families caring for NEET adult children, including increased funding for mental health services, job training programs, and direct financial assistance. Currently, Australia's welfare system does not adequately recognize the role of parental caregivers, the researchers argue.
"We need policies that acknowledge the care work parents are doing and provide them with resources," Dr. Thompson said. "This could include tax breaks, carer allowances, and better access to counseling."
Without such support, the researchers warn that the trend could worsen, with long-term implications for both family wellbeing and the broader economy. As more young people remain dependent on parents, household savings and retirement plans are at risk.
