The cost of living will rise. Salary is not. Workers are not okay.

Date:

play

American workers are highly dissatisfied with their jobs. The problem is that they are not being paid enough to keep up with the rising cost of living.

Even with cost-of-living adjustments and pay raises, four in 10 workers say their incomes still aren’t keeping up with expenses, according to a new USA TODAY/SurveyMonkey workforce survey of more than 3,000 U.S. workers.

In the run-up to the 2026 midterm elections, concerns about the cost of living are front and center on dinner tables across the country. Americans are paying higher prices for everything from groceries to car insurance, dwindling savings, mounting credit card debt and straining household finances.

And so are their options to do something about it. The slump in employment and the wave of layoffs has led to widespread job insecurity and anxiety. Many workers stay in their current jobs rather than look for new ones, even if it makes it harder to negotiate higher wages.

Only one in five workers say their wages have increased more than inflation over the past year. One in three people say their pay has been kept in line with increases in the cost of living.

“American salaries have not kept pace with American lifestyles,” Eva Chan, a career expert at Resume Genius, a resume-building software company, said in a statement.

Too little money to save if you get fired

There is a wide gap between what American workers earn and what they spend on basic necessities, leaving many more workers in precarious financial straits.

More than half of workers have less than three months of living expenses saved in case of a layoff. Almost a third only last one month, and almost a quarter last one to two months.

The USA TODAY/SurveyMonkey workforce survey also found:

  • 42% of workers say their current savings cover more than three months of living expenses.
  • 16% have 3-5 months worth of living expenses saved
  • 12% have 6-12 months worth of savings
  • 14% have saved for more than 12 months

Economic stress prevalent among American workers

Financial stress has become more prevalent in the workplace these days.

According to last year’s PwC Global Employee Hopes and Fears Survey, more than half of employees are facing financial strain. Less than half of the employees surveyed had received a raise in the previous year.

Social media is full of tear-jerking videos showing how difficult it has become to make ends meet. About 14% of workers are unable or struggling to pay their monthly bills, according to a PwC survey. Another 42% pay their bills with little or nothing left in savings. According to PwC, more than half of employees will face financial strain by 2025.

“I have to work 40 hours a week just to have a place to live,” one woman said in an Instagram post. “You can earn $2,000 a month for 40 hours a week, and your rent is $1,660. So you can work 40 hours a week and live in a two-bedroom apartment, plus an extra $300 a month. So that doesn’t even cover your phone, internet, or food.”

Almost three-quarters of HR professionals surveyed by ZayZoon in 2024 said covering basic necessities like rent and groceries topped the list of employee stresses. ZayZoon is a service that allows employees to access pre-payday wages for a fee.

More than half (61%) said their employees live paycheck to paycheck. Nearly all reported workers have experienced at least one serious financial setback, such as bankruptcy, homelessness, or eviction.

Help with medical expenses tops request list

Another major expense item is medical expenses. And having their employer pay for it is at the top of workers’ wish list for workplace benefits.

Half of workers say their biggest desire is for health insurance to be fully paid for by their employer.

Most working-age Americans obtain health insurance through their workplaces, and most of the premiums are collected by employers. But the rest is important, especially now that health insurance premiums are rising faster than wages and employers are shifting the burden onto workers with higher deductibles and copays.

Other health benefits also rank high, according to research.

  • 26% want health benefits
  • 22% of parents with children under 18 cite paid parental leave
  • 21% want paid family or caregiver leave, and 10% want fertility or family planning assistance.

Other desirable benefits reflect the economic strains facing workers.

  • 22% want free meals at work
  • 18% want transportation expenses paid
  • 17% want to pay off student loans
  • 22% of parents (of children under 18) want free on-site child care

American workers want help with financial planning

As workers weather financial hardships, some are looking for financial planning resources.

Four in 10 workers say their workplace provides financial education and planning resources. More than a third said their workplace did not offer such benefits. One in four people are not sure.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

Matt Painter says Miami, Ohio’s schedule was a matter of their decision.

ST. LOUIS — Matt Painter did what Matt Painter...

John Calipari didn’t have to change his ways, he just changed his mood.

John Calipari shares the secret behind Arkansas basketball's NCAA...

Meet the therapy llamas who entertain travelers at U.S. airports

At Portland International Airport, therapy llamas and alpacas help...

You can work from anywhere until you file your state taxes. don’t pay twice

Tips to save money on your tax return this...