Americans making lower incomes continue to struggle with savings. Those rainy day funds have started to dry up at an alarming rate.
When it comes to adults earning less than $50,000 a year, savings have all but vanished. 40% of those in that $50k or less group have enough savings for one month of expenses. Meaning, if they were laid off or lost their job, they would be in dire circumstances.
That 40% mark is up from just 28% in November. The number has steadily increased as the calendar distances itself from those widespread stimulus payments. These numbers represent just one side of the income inequality that Americans are facing according to an Axios and Morning Consultant Inequality Index.
According to that index, the financial situation of those lower-income earners has worsened. Amid price increases for general goods and services, wages have failed to keep pace. So, folks are not able to save as much as they used to be able to. For a household that falls into this category, not having a savings cushion can be a big problem.
One month’s expenses include all of the bills including electric, water, trash pickup, not to mention rent or mortgage payments. Car payments, gas, childcare, and all of the other expenses that make up the reality that is life. Americans that don’t have those savings are in a vulnerable position for sure. If that number keeps increasing at this rate, then it could go over 50% in a hurry.
While the unemployment rate falls, Americans are still trying to find footing it seems. There is a lot going on in the economy including a record number of folks quitting and walking away from their jobs.
Americans Quitting Jobs At Record Pace
As the end of the year came around in December last month, jobs reports were being put together and the numbers compiled. Unemployment was able to fall down to 3.9%. That is a number that sounds very promising. However, another phenomenon is taking over the workplaces of Americans. Quitting.
More Americans are leaving their jobs to look for something better than almost ever before. All ages, too. Young, old. People across demographics are stepping away from jobs and hoping to find better pay, benefits, and conditions elsewhere. In the service industry, this has led to a lot of job openings and employers looking for ways to fill those positions.
What it has come down to seems to be relatively simple. Folks want more money. And it isn’t just a few people, it is a widespread action it seems. Americans are saying what they want and what they need from their employers. Those that aren’t able to or refuse to meet them in the middle might be finding themselves short-staffed and looking for answers.