60% Of Americans Now Living Paycheck To Paycheck

By CNBC
Posted on 10/04/22 | News Source: CNBC

Almost everyone has felt the sting of rising prices.

As of August, 60% of Americans were living paycheck to paycheck, according to a recent LendingClub report — a number that hasn’t budged much since inflation hit 40-year highs. A year ago, the number of adults who felt stretched too thin was closer to 55%.

Even high-income earners are feeling the strain, the report found. Of those earning more than six figures, 45% reported living paycheck to paycheck, a jump from the previous year’s 38%. 

“More consumers living paycheck to paycheck indicates that many are continuing to lose their financial stability,” said Anuj Nayar, LendingClub’s financial health officer.

Inflation is a persistent problem

The consumer price index, which measures the average change in prices for consumer goods and services, rose a higher-than-expected 8.3% in August, driven by increases in food, shelter and medical care costs.

Although real average hourly earnings also rose a seasonally adjusted 0.2% for the month, they remained down 2.8% from a year ago, which means those paychecks don’t stretch as far as they used to.

A separate report by Bank of America found that 71% of workers feel their pay isn’t keeping up with the cost of living, bringing the number of people who feel financially secure to a five-year low.