DENVER, July 11, 2023 /PRNewswire/ -- New research released today by Western Union has revealed that just over half (51%) of migrants living in Australia believe their friends or family would be in poverty if it wasn't for them sending regular payments back home.
The report – The Value of Remittance – looks to shed a light on the real-world impact of remittance payments, finding that 57% of migrants believe that without being able to send money, their family or friends would not be able to afford medical treatment and 56% state that they would not be able to afford good quality food. Over half (53%) went on to say that their family would not be able to attend school or further education if it wasn't for the remittance that they send and 51% stated they wouldn't be able to afford their rent or mortgage.
The study, which surveyed migrants living in Australia, demonstrates the positive affect that remittance payments have on families around the world. The report found that 79% of migrants believe that their families' quality of life has improved vastly due to the money that they send and 77% believe that their family and friends have more opportunities in life as a result of their remittance payments.
How is remittance being used by families of migrants living in Australia?
On average migrants were found to send 11% of their annual income as remittance. With the primary reasons being to contribute towards their family's food bill (67%), healthcare costs (60%) and accommodation (42%). Ninety-two percent of migrants were found to have sent money to family back home in the past 12 months and 67% of migrants state that being able to send money to family back home was a key factor in their decision to move to Australia.
The most common uses of remittance amongst families of migrants:
The pressure of providing back home
The study found that amongst rising inflation, many migrants are struggling with the pressure of providing for their families and friends back home. Over half (56%) of migrant's state that they have had to work extra hours or have started another job to continue sending remittance payments and 62% say that they have had to reduce the amount of remittance that they send due to rising living costs. Over half (52%) reported that they were concerned about the possibility of losing their job in the next 12 months and the impact this will have on their families back home.
Top 10 countries migrants living in Australia are sending money to:
(Source: KNOMAD/World Bank Bilateral Remittance Matrix)
This pressure is having a profound strain on the mental wellbeing of migrants living in Australia. Sixty-nine percent state that the responsibility of having to support their family or friends can sometimes be too much to bear and a further 69% of migrants say that they regularly make sacrifices in their own life to ensure that they are able to continue sending money to their friends or family. Fifty-eight percent also reported that they often feel lonely, suggesting many migrants are prioritising work over building their own personal relationships.
Despite this, 81% of migrants of state that the fact that they are able to send money to their friends or family gives their life a sense of purpose and almost three-quarters (73%) of migrants say that without having moved to Australia they may not have been able to support their friends or family financially at all.
For more information and to read the full report please visit: https://www.westernunion.com/blog/en/au/value-of-remittance-australia/
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Methodology
Research was conducted by 3Gem on behalf of Western Union in March 2023. The research surveyed 1,500 migrants who regularly send remittance across the following countries:
Country |
N= |
UK |
350 |
Italy |
300 |
Spain |
300 |
Canada |
200 |
Australia |
200 |
New Zealand |
150 |
Total |
1500 |
The top 10 countries for outward remittances was sourced from: KNOMAD/World Bank Bilateral Remittance Matrix 2021, December 2022: https://www.knomad.org/data/remittances
About Western Union
The Western Union Company (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. Western Union's platform provides seamless cross-border flows and its leading global financial network bridges more than 200 countries and territories and approximately 130 currencies. We connect consumers, businesses, financial institutions, and governments through one of the world's widest reaching networks, accessing billions of bank accounts, millions of digital wallets and cards, and a substantial global network of retail locations. Western Union connects the world to bring boundless possibilities within reach. For more information, visit www.westernunion.com .
