A think tank focussed on improving Perth is warning the majority of local households will struggle to make ends meet if living costs rise just five per cent.
The Committee for Perth is a collective of organisations and businesses that "aims to lead debate, advise and be a catalyst for positive change" in Perth - but in a survey of 2,000 Perth and Peel residents, it found a largely negative outlook now that WA is no longer enjoying the mining boom.
"The mining, energy and construction boom lasted over a decade and as a community we have forgotten what it is like to live in what would be described as a normal economy," said Committee for Perth CEO, Marion Fulker.
"Many people expected and were given wage rises every year and saw the value of their assets like a home and shares constantly increase. Post-boom, this just isn't the case anymore which has made life painful for many."
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The report by market research firm Ipsos found almost 40 per cent of people surveyed in Perth and Peel have had their careers disrupted post boom, whether through a redundancy or a change in job or sector.
And even for those holding onto their jobs, 72 per cent of those surveyed said they expected no real growth in wages, while 45 per cent couldn't see any improvement in their quality of life.
Ms Fulker said this lack of optimism was concerning.
"Sixty per cent of household finances are so fragile they would struggle if living costs went up by just 5 per cent, and only 38 per cent of the people thought they were better off than they were five years ago," she said.
"A significant number of people still think they're stuck in financial rut with 26 per cent of them saying their current income is insufficient for their needs. This is a clear indication that policy makers are in for challenging times."
The survey feeds into the Committee's Bigger and Better Beyond the Boom two-year research project, which is looking at ways WA industries can become economically diverse.
And while it highlights how a lot of people are struggling, the survey also shows a widening gap between rich and poor.
"The story of the boom was always one about a two-speed economy. There were those who reaped the financial benefits of working in the resources sector and those who didn't but had to cope with the higher cost of living," Ms Fulker said.
"Examining those two groups and who was affected by the end of the boom, we found it was just over a quarter of households with income of $40,000 or less and almost half of households with income of $150,000 or more
"What's interesting is that most higher income households bounced back - 62 per cent of them are better off than they were five years ago, while 70 per cent expect an improvement in their quality of life and 69 per cent believe their job is secure.
"When we look at people on lower incomes, only 19 per cent of them are better off than they were five years ago. Only 38 per cent expect any improvement in their quality of life, and only 45 per cent think their job is secure."
The report's launch on Wednesday comes after WA's new Treasurer Ben Wyatt revealed he will ask parliament to borrow $11 billion to help deal with WA's crippling debt and to ensure the state doesn't run out of money by the end of the financial year.
And just last month, Premier Mark McGowan declared WA's financial situation the "worst since the Great Depression".
"More than 80 years ago the Great Depression occurred, the world's economies were thrown into turmoil," he said at the time.
"Our set of finances are now the worst since that point in time.
"In Opposition as we were until a couple weeks ago, you never quite understand the magnitude of what will confront you in government.
"Now that we're there, you see the full horror on display before you."
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