'None of Our Paychecks Are Keeping Up:' 71% of Workers Say Inflation and the Cost of Living Are Outpacing Their PayWhile prices are on the rise, wages are staying the same.
Pay is not keeping up with prices.
According toBank of America's Workplace Benefits Report, 71% of workers said the cost of living is outpacing salary growth. The report was published in July and surveyed nearly 500 employees.
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 toRealtor.com.
However, things are beginning to look up afterRealtor.comreported a$10 decrease in average rentin the top 50 metropolitan areas in September 2022.
"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."'
