Summary
More Americans are having trouble making ends meet, with 64% of workers living paycheck to paycheck. Rising living costs, such as home expenses and childcare, and slower wage growth for lower-income workers contribute to this trend. Some experts are concerned this could impact consumer spending during the holiday season.
Key Facts
- A survey by ADP shows 64% of American workers live paycheck to paycheck.
- The percentage of lower-income households in this situation has increased to 29%.
- Inflation and rising costs for essentials are major challenges in 2025.
- Wage growth has slowed for lower-income workers compared to higher earners.
- The K-shaped economy describes divergent financial success between income groups.
- Consumer spending, crucial for the economy, might decrease due to financial strains.
- Higher-income earners are likely to continue spending steadily, especially during holidays.
