By Ryan Ashton
In 2024, the financial wellbeing of the American workforce remains a significant concern, much like in 2022. The Wages & Wellbeing study we conducted this year highlights that nearly half of working Americans (49%) are frequently short on money before payday, indicating a continued reliance on paycheck-to-paycheck living. This statistic has remained consistent over the past two years, underscoring a persistent challenge in the U.S. labor market. For many workers, stretching their income to cover essential expenses between pay periods remains a difficult task, and this financial stress is taking a tangible toll on their daily lives.
Many American workers experience frequent anxiety about their financial situation, with over half of respondents (54%) worrying daily or several times a week about making their money last until the next paycheck. This level of financial insecurity pushes individuals into making difficult choices. In 2024, 43% of respondents reported going to work while sick, a significant increase from 2022. Similarly, 39% of workers admitted to skipping meals to save money, and 27% turned to high-interest loans to cover bills. This data highlights how financial pressures drive employees to make decisions that can harm both their health and financial futures.
The study also explores generational differences in financial struggles. Younger workers, particularly Gen Z and Millennials, are disproportionately affected by financial stress. Gen Z workers, for example, are the most likely to go to work while sick (46%) and skip meals to save money (45%). Meanwhile, a significant portion of Millennials (32%) have had to borrow money at high interest rates to make ends meet. These findings reflect how younger generations are bearing the brunt of financial uncertainty, with potential long-term consequences for their health and stability.
One solution that would alleviate these financial challenges is more frequent access to wages. A majority of workers (86%) express a preference for same-day pay, and 54% of respondents believe that having immediate access to their earned wages would significantly improve their ability to save money. The demand for flexibility in pay frequency is clear, and it has the potential to address many of the financial struggles that American workers face today. By providing more frequent access to earned wages, employers could help employees avoid late payments, reduce reliance on high-interest loans, and better manage their day-to-day expenses.
In conclusion, the Wages & Wellbeing study paints a picture of a workforce still struggling with financial insecurity despite the passing of two years. The consistency in responses from 2022 to 2024 suggests that little progress has been made in addressing the financial pressures faced by employees. However, the growing demand for same-day pay presents a possible path forward. Providing workers with quicker access to their earnings could be a critical step in improving their financial and mental wellbeing, reducing the need for drastic measures like skipping meals or taking on high-interest debt. For employers, offering flexible pay options is not just a perk but a necessary response to the financial realities of today’s workforce.
Stay tuned for the second part of our in-depth review of our 2024 Wages & Wellbeing study. To access the entire report, download it here.
