Labour Market Detachment and Social Disconnection in Later Working Life: Evidence from the Australian Hidden Workforce

Social disconnection, encompassing both loneliness and social isolation, is increasingly recognised as an important public health concern. While employment provides opportunities for social participation and role engagement, less is known about how different forms of labour market detachment relate to subjective and objective dimensions of social connection in later working life. This study examined the association between labour force attachment and both loneliness and social isolation among Australians aged 50–64 years using cross-sectional data from Wave 22 (2022) of the Household, Income and Labour Dynamics in Australia (HILDA) Survey ( n = 3362). Participants were classified into labour force attachment groups including in work, underemployed hidden workers, unemployed hidden workers, discouraged workers, those not wanting work, and other. Survey-weighted logistic regression models were used to estimate adjusted predicted probabilities of loneliness and social isolation across labour force groups. After adjustment for sociodemographic and health characteristics, predicted probabilities of loneliness were elevated across hidden worker subtypes relative to those in paid employment, with point estimates 10–13 percentage points higher across categories. Differences in social isolation between hidden worker subtypes and those in paid work were small in magnitude. The highest adjusted predicted probability of social isolation was observed among individuals who reported not wanting work. These findings suggest that, in later working life, labour market marginalisation is associated more strongly with subjective experiences of social disconnection than with the structural availability of social contact. Interventions to reduce loneliness among older working-age adults may benefit from recognising the institutional functions of paid work alongside approaches targeting social contact.