Pay is not keeping up with prices.
Further, 62% of employees reported being stressed about finances, while 80% stated they are worried about inflation. About half of the participants said they have taken action to cope with financial strain in the last six months.
These measures include pulling from savings accounts to make ends meet, working extra hours, and looking for higher-paying jobs. About 6% reported dipping into their 401(k).
Although people are being resourceful, rising rents have greatly impacted those whose salaries have remained stagnant. In August 2022, rent was up by $158 (11.8%) year-over-year, according to Realtor.com.
“Affordability is still a very big challenge for renters,” Realtor.com economist Jiayi Xu said, per Realtor.com. “Inflation is still high, and renters are still feeling the stress of higher costs.”‘