Analysis: Children experience economic downturns through household stress, tension and anxiety rather than GDP figures or interest rates
I don’t remember inflation rates from the 1980s. I don’t remember discussions about unemployment, interest rates or fiscal policy. I don’t remember being told by Charlie Haughey that we were living “way beyond our means”.
But I do remember car journeys been limited because petrol had become too expensive, relatives emigrating to Canada in search of work and my parents keeping a watchful eye on the weekly grocery bill. Like many Irish children growing up during periods of economic uncertainty, I experienced the 1980s economy indirectly through the adults around me.
From RTÉ Archives, Taoiseach Charles J. Haughey warns viewers that “as a communituy, we are living away beyond our means” in 1980
Children rarely experience recessions through macroeconomic statistics, but through changes in household routines, financial strain, uncertainty and the emotional atmosphere at home. Economic crises do not stop at banks, budgets or employment figures. They also enter homes, relationships and daily life.
This became especially relevant during Ireland’s Great Recession. Between 2007 and 2011, unemployment rose dramatically and austerity measures were introduced. As a result, many families experienced sudden and deep economic insecurity. Public discussion at the time understandably focused on jobs, banking failures, emigration and government finances. Less attention was given to how children may have experienced this period psychologically.
Research, published in The Economic and Social Review, examines childhood psychological health during the recession using data from the Growing Up in Ireland study, the largest longitudinal studies of children and their families undertaken in Ireland. The research followed children over time and explored how economic, parental and lifestyle factors were associated with child psychological wellbeing during and after the recession.
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From RTÉ Radio 1’s Drivetime in 2024, the latest findings from the Growing Up In Ireland study found that teens smoke and drink less, but are substantially more at risk of depressive symptoms
The study used the Strengths and Difficulties Questionnaire (SDQ), a widely used measure of child psychological health that captures emotional symptoms, behavioural difficulties, peer relationships and hyperactivity. While no single factor wholly explains child wellbeing outcomes, one of the strongest and most consistent relationships in the study was the association between maternal mental health and child psychological wellbeing.
This is important because it highlights how economic crises may affect children indirectly through pressures placed on adults. Financial stress does not remain neatly contained within household budgets or economic indicators. It can affect stress levels, emotional wellbeing and family dynamics. Children are often highly sensitive to these changes even if they do not fully understand their causes.
Importantly, this is not about placing additional responsibility on parents, and particularly not mothers. Economic downturns create pressures that are structural rather than individual. During the recession many families were simultaneously dealing with unemployment, reduced working hours, falling incomes, mortgage stress and uncertainty about the future.
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From RTÉ Radio 1’s Morning Ireland, anxiety, stress, isolation are key issues concerning young people
Ireland’s recession was accompanied by substantial cuts to public spending and social supports, while housing and employment insecurity became widespread realities for many households.
Research internationally has consistently shown that periods of economic strain are associated with poorer adult mental health outcomes, including increased stress, anxiety and depression. What is often less visible is how these pressures may spill over into children’s emotional environments.
Children are often highly sensitive to these changes even if they do not fully understand their causes.
The ESR research also suggested that broader measures of household and financial stability matter for child wellbeing. Factors linked to financial strain and housing security are associated with psychological outcomes. This reflects wider evidence showing links between housing conditions, financial stress and mental health inequalities.
Research across European countries by Brendan McElroy and Edel Walsh found that housing problems were associated with greater socioeconomic inequalities in depressive symptoms in several countries, highlighting the role that housing quality and financial strain can play in shaping psychological wellbeing.
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From RTÉ Radio 1’s Morning Ireland, Children’s Ombudsman to call for child and family homelessness strategy
This remains highly relevant today. Ireland may not be in recession, but many families continue to experience increased economic insecurity through housing pressures, childcare costs and broader cost-of-living concerns. Housing insecurity in particular has become an increasingly important social issue. Uncertainty around rent, affordability or secure housing can create stress within households long before it appears in official economic statistics.
Children experience these pressures differently from adults. Adults may think in terms of mortgages, bills, inflation or affordability. Children experience them through tension at home, changes in routine, uncertainty and emotional stress within families. Stable and supportive home environments can act as important protective factors during periods of economic uncertainty, while prolonged insecurity may place additional strain on family-wide psychological wellbeing.
One of the more hopeful findings from resilience research is that not all children experience economic crises in the same way. Many families provide supportive and emotionally stable environments despite wider financial pressures. Strong family relationships, social supports and stable routines can help buffer some of the effects of economic stress.
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From RTÉ Radio 1’s Brendan O’Connor, family therapist Richard Hogan tells Brendan how parents can deal with anxious children
Economic policy is therefore also social policy. Decisions relating to housing, employment protections, healthcare access, childcare and family supports may ultimately shape child wellbeing in ways that extend far beyond immediate economic outcomes.
Children do not experience economic downturns through GDP figures or interest rates, but through household stress, disrupted routines, financial insecurity, and changes in parental time and wellbeing. While recessions may officially end when growth returns and unemployment falls, their effects on children and families can persist long afterwards.
These less visible consequences remind us that economic conditions and policy decisions can shape childhood experiences in ways that are not always captured in national statistics.
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The views expressed here are those of the author and do not represent or reflect the views of RTÉ