Helping households and individuals achieve prosperity and financial security is a key outcome for governments. Many aspects of public governance contribute to this, whether by supporting economic growth, enabling different groups to share the benefits of growth or, in some cases, by redistributing income to support those with lower income levels. Greater levels of prosperity may also support other beneficial outcomes such as greater trust in public institutions (OECD, 2024a).
In 2023, a time when inflation remained high, more than two thirds of people (71%) in OECD countries were concerned about their household finances and worried about their economic well-being over the next couple of years (Figure 3.1). A majority of people reported concerns about their household finances in 27 of the 30 countries for which data are available, with women more worried than men in all 30 countries. On average across the OECD, 68% of men and 75% of women report such concerns.
Moreover, people’s concerns about their prosperity and household finances have increased in recent years. The share of people concerned about their ability to pay all expenses and make ends meet rose from 67% in 2020 to 75% in 2022 (Online Figure J.1.1). This coincides with a period of sharply rising prices, with inflation across the OECD rising from an average of 1% in the second quarter of 2020 to a peak of 10.1% in the same period of 2022 (OECD, 2024b). Concerns increased in 22 of 25 countries with data available. A majority of people report concerns about covering household expenses in every country other than Denmark (49%).
Many people also have concerns about their ability to access public welfare or benefits. Only 52% of people in OECD countries are confident that they would be treated fairly if they applied for government benefits or services (Figure 3.2). People are most confident in Finland (77%) and Ireland (74%). Those with lower levels of education are less confident that they will be fairly treated (45%) than those with medium (50%) or high levels of education (60%). Women (50%) are less confident than men (55%) (Online Figure J.1.2).
There are high levels of support for policies to improve prosperity and economic security (Figure 3.3). A large majority of those surveyed across the OECD felt that their countries should prioritise providing equal opportunities for all (82%) and creating conditions for business to thrive (81%). Large majorities also supported prioritising help to adapt to automation (77%), which may lead to job losses in some sectors and regions, as well as reducing public debt (75%) and greenhouse gas emissions (69%), which may affect growth and living standards over the long term.
