Amid record-high inflation, 1 in 5 American workers are now living paycheck to paycheck, a new survey has revealed.
SO WHAT
These are the kinds of figures you just can’t spin.
THE NUMBERS
According to Salary Finance’s 2022 Annual Report, the number of employees, 20%, who regularly run out of money between paychecks is up 5% since last year.
What’s causing the squeeze? Inflation hit a four-decade-high of 7.9% in February, according to data from the Bureau of Labor Statistics.
- This means consumers are paying higher prices for a whole host of goods, which range from grocery store items to electricity.
- And while wages are increasing, the pay bumps aren’t keeping pace with the rising cost of living.
- Higher costs have American workers feeling the pressure: Salary Finance’s survey found that nearly half, 45%, reported feeling financially stressed.
Inflation is hitting lower-income earners the hardest: 84% of respondents making less than $55,000 told Salary Finance the rising price of consumer goods was impacting them, compared to 76% of the general population.
THE IMPLICATIONS
The state of the economy is already exacting political costs on the party and president in power, despite some experts’ claims that “inflation is good, actually.”
- An NBC News poll released Sunday found that most Americans, 68%, believe reducing inflation and improving the economy should be President Biden’s top priority.
- A plurality, 38%, blame Biden for spiking inflation.