American workers are sending a clear and consistent message: their wages are no longer keeping up with everyday life. Living expenses are climbing, paychecks are stagnating, and workers are struggling to bridge the widening gap between what they earn and what they spend.
Despite occasional cost-of-living adjustments or modest raises, nearly 4 in 10 workers say their income has failed to keep pace with their expenses, according to a recent USA TODAY/SurveyMonkey Workforce Survey of more than 3,000 U.S. employees. For many households, the math simply doesn’t work anymore.
Cost-of-Living Pressures Dominate the Conversation
As the 2026 midterm elections approach, the rising cost of living has become a kitchen-table issue across the country. From groceries and rent to car insurance and utilities, higher prices are eating away at savings. Credit card balances are growing, emergency funds are shrinking, and household budgets are under constant strain.
At the same time, workers feel increasingly stuck. Hiring has slowed, layoffs have made headlines, and job insecurity is widespread. Instead of searching for new opportunities, many employees are holding on tightly to their current jobs—even if that means limited leverage to negotiate better pay.
Only about 20% of workers say their wages increased faster than inflation over the past year. Another third report that their pay merely kept up with rising expenses, leaving little room for savings or financial progress.
“The American paycheck isn’t keeping up with American life,” said Eva Chan, a career expert at Resume Genius, summing up a sentiment shared by millions.
Thin Safety Nets Leave Workers Vulnerable
The growing disconnect between income and basic living costs has pushed many workers into precarious financial territory. More than half of American workers have saved less than three months’ worth of expenses in case they lose their job. Alarmingly, nearly one-third have only enough savings to last a single month.
The survey revealed stark contrasts in financial preparedness:
42% can cover three months or more of expenses
16% have savings for three to five months
12% have six to twelve months saved
14% report having more than a year’s worth of expenses set aside
For the rest, a sudden layoff or medical emergency could quickly spiral into crisis.
Financial Stress Is Now a Workplace Norm
Money stress has become a daily reality for many employees. According to PwC’s Global Workforce Hopes and Fears Survey, more than half of workers are experiencing financial strain, and fewer than half received a raise last year.
Social media reflects this anxiety in raw, personal ways. Viral videos show workers breaking down as they explain how full-time jobs barely cover rent, let alone food, transportation, or healthcare. PwC found that 14% of workers struggle to pay their bills each month, while another 42% manage to pay bills but have little or nothing left over. In total, that’s more than half the workforce living under financial pressure.
Human resources professionals see this stress firsthand. A 2024 survey by ZayZoon found that basic necessities like rent and groceries are the top sources of employee anxiety. About 61% of workers live paycheck to paycheck, and nearly all employers reported employees facing at least one major financial setback, such as eviction, homelessness, or bankruptcy.
Healthcare Costs Top Workers’ Wish Lists
Healthcare remains one of the most significant expenses for American households, and workers want relief. Half of surveyed employees said their top workplace benefit request is fully employer-paid health insurance premiums.
While most working-age Americans receive health insurance through their jobs, rising premiums, deductibles, and copays are shifting more costs onto workers—often faster than wages are increasing.
Other highly desired benefits include:
26% want a health or wellness stipend
22% of parents want paid parental leave
21% seek paid family or caregiver leave
10% want fertility or family-planning support
Financial pressure also shapes interest in non-health benefits:
32% want a stronger 401(k) match
28% prefer unlimited paid time off
22% want free food at work
18% seek transportation stipends
17% want student loan repayment assistance
22% of parents want free onsite childcare
Growing Demand for Financial Planning Support
As workers try to navigate these financial headwinds, many are looking for guidance. About 40% say their employers offer financial education or planning resources. More than a third say such support is not available at their workplace, and one in four aren’t even sure whether it exists.
The takeaway is clear: Living expenses are climbing, paychecks are stagnating, and workers are struggling—not just to get ahead, but to stay afloat. Without meaningful wage growth, stronger benefits, or better financial support, the pressure on American workers is likely to intensify in the years ahead.
