Cognitive abilities declining uniquely among Australian teenagers and young adults
Data from a comprehensive Australian longitudinal survey spanning 2012 to 2024 shows that 15- to 24-year-olds are the only age group experiencing measurable declines in cognitive performance, with working memory scores dropping from 4.0 to 3.8 and processing speed scores declining from 55.4 to 52.7. Researchers note this trend is concerning given the strong connection between cognitive ability and financial literacy, employment prospects, and earning potential. The decline raises questions about potential contributing factors, including the rising screen time among young people.
The HILDA Survey tracked over 17,000 Australian residents annually across multiple life domains including employment, education, health, and finances. The cognitive assessment measures two key brain functions: working memory capacity and processing speed. Working memory determines how much information a person can hold and manipulate mentally, while processing speed reflects how quickly the brain executes tasks—both foundational to learning and problem-solving.
The financial literacy gap is particularly notable. When tested on fundamental economic concepts like inflation's effects and investment risk, only 33% of 15- to 24-year-olds answered all questions correctly, compared to substantially higher success rates among older demographics. Social engagement and physical exercise showed protective associations with cognitive performance across all age groups studied.
The declining cognitive scores among young Australians could have broad economic implications. Weaker working memory and processing speed may correlate with reduced employment competitiveness and lower earning potential during formative career years. The observed financial literacy gaps could affect long-term wealth accumulation and retirement security for this cohort. However, identifying causal mechanisms—whether screen exposure, educational changes, mental health trends, or other factors drive the decline—remains essential before interventions can be designed. Understanding these drivers may inform public health and education policy decisions.