Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
The gap between income and living costs is widening for many American workers, with new data revealing a growing share are struggling to stay financially afloat.
A recent survey by PNC Bank highlights a troubling trend: two-thirds (67%) of U.S. workers now report living paycheck to paycheck. This marks a continued rise from the previous year (63%) and shows the impact of persistent inflation and rising fixed expenses, according to Newsweek.
Wages Can’t Keep Up With Inflation
Behind the numbers is a deeper imbalance. Prices for everyday necessities have surged by nearly 25% over the past five years, outpacing the modest gains in wages. While earnings have risen, they haven’t kept up with the cost of living, and the result is mounting pressure on household budgets.
The situation is especially acute for workers facing multiple financial stressors at once — high housing costs, expensive insurance premiums, and the reactivation of student loan payments.
These fixed obligations are consuming larger portions of income, leaving less room to navigate unexpected expenses or build savings.
For many, credit cards have become a fallback option. But borrowing to cover essentials comes at a steep price. With interest rates at record highs, reliance on credit can quickly spiral into long-term debt, especially when balances can’t be repaid in full.
Some are turning to gig work or side jobs to close the gap, but others find themselves trapped in a cycle of rising costs and limited options. The erosion of pandemic-era savings has left many households more vulnerable to even minor economic disruptions.
Policy experts warn that financial fragility may worsen if economic supports are scaled back. Changes to government programs like Medicaid or SNAP could tighten the squeeze on already stretched households, particularly those in lower income brackets.
While some observers are cautiously optimistic about long-term improvements, the near future looks uncertain. Without targeted policy responses or meaningful changes in wage growth, the trend of living paycheck to paycheck may become even more widespread — and more deeply entrenched.
