Nearly two-thirds of American adults are now living paycheck-to-paycheck, according to a new study from LendingClub Corp. and PYMNTS.com.
According to a poll of 3,942 adults conducted Sept. 9-23, 63% of respondents admitted they were in a paycheck-to-paycheck existence, up from 57% one year ago and just under the recent high of 64% set in March 2022. The share of paycheck-to-paycheck consumers has spiked among mid- to high-income earners, with 63% and 49%, respectively, up from 57% and 38%, respectively, one year ago.
Average hourly earnings failed to match the rate of inflation, increasing by 4.9% over the 12 months preceding September 2022 while inflation rose by over 8.2% in that same period. But 48% of respondents said their incomes have remained unchanged over the course of last year.
Financially struggling consumers are disproportionally concentrated in the retail and services segments, and 26% of respondents said they have more than one employer ”“ but less than four in 10 respondents felt their current jobs meet their wage expectations.
“The five-percentage point increase in employed consumers living paycheck-to-paycheck from last year is an indication of how consumers are not able to keep up with the pace that inflation is increasing,” says Anuj Nayar, LendingClub’s financial health officer. “Being employed is no longer enough for the everyday American. Wage growth has been inadequate, leaving more consumers than ever with little to nothing left over after managing monthly expenses.”
