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Inflation is hitting hourly workers hard with financial worries -Survey

*Study findings revealed how quickly rising prices have resulted in a reversal of fortunes with attendant financial worries in several households across the United States

Gbenga Kayode | ConsumerConnect

Inflation is hitting just about everyone struggling in several economies, but a new survey indicated that it is especially hitting America’s working men and women: those who work for hourly wages instead of salaries.

A Harris Poll of hourly workers, commissioned by DailyPay and Funding Our Future, has revealed how quickly rising prices have resulted in a reversal of fortunes in several households.

The report also showed 39 percent of women in the survey said they are saving less money than they did last year.

Another 40 percent of hourly workers with a household income of less than $100,000 said they are saving less than last year or not at all.

Amid inflation, the prices of some products are causing more distress than others.

Eighty-one percent of hourly workers in the poll reported that higher gas prices have made it difficult to pay other expenses.

When asked to list the expenses that are causing financial hardships, 49 percent of respondents mentioned groceries, 48 percent listed gasoline, 40 percent said utility bills are causing economic distress, and 34 percent said it is harder to pay their rent or mortgage.

As these expenses are going up, many hourly workers said their incomes are not, report stated.

Thirty-five percent said they haven’t received a raise in over a year.

The less money these workers earn, the more likely they are to say their pay has remained flat.

On importance of emergency savings

All of these financial worries are taking a toll on personal well-being, with 77 percent of hourly workers saying their health has suffered because of financial worries.

Shai Akabas, Director of Economic Policy at the Bipartisan Policy Center, said:

“First the pandemic’s immediate economic fallout, now record inflation and high gas prices have reminded us how important financial security and flexibility are for American families.

“It’s crucial that we increase access to tools like emergency savings accounts and on-demand pay that help workers save for and weather turbulent times.”

Previous research has made it abundantly clear that millions of people don’t have nest eggs available to cushion inflation’s blow, report said.

Last month, LendingClub Corporation published research showing that nearly two-thirds of the US population lives paycheque to paycheque.

Living paycheque is said to mean you aren’t putting any money in savings or building an investment portfolio.

As long as they pay their bills on time, these consumers remain creditworthy.

However, it could take just one unexpected car or home repair bill — or an increase of  a gallon for gasoline — to change that.

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