A new survey confirms what experts have been warning about: pay is not keeping up with the cost of living.
According to a Bank of America-sponsored survey, a whopping 71% of employees say that their wages have not kept up with the pace of inflation in July, up from the 58% who said so in February.
With 62% saying they are financially stressed at the moment, half of respondents said they have had to take measures to alleviate the financial pressure felt from increased expenses.
Among those measures include dipping into emergency savings to pay bills (21%), working extra hours (21%), seeking better-paying jobs (20%) and withdrawing from 401 (k) plans (6%).
The Bureau Labor of Statistics shows that consumer prices rose 8.3% year-over-year in August, slightly below the record-high of 9.1% seen in June.
Despite this slight decline, just 44% of employees felt financially well off. Financial insecurity grew even more among minority communities, with just 32% of Black workers and one in three Hispanic workers saying they felt financially well off.
Young workers are feeling the biggest brunt of inflation, with 21% considering switching their job due to the need for better pay, work-life balance and being burned out.
Although the Federal Reserve has continued to hike interest rates upto stave off inflation, this move could tip the economy into a recession if done too quickly.