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CNN Business
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Even as inflation eases from 40-year highs, the cost of living continues to stress American workers.
According to a Bank of America survey shared exclusively with CNN on Monday, 67% of employees say the cost of living is outpacing salary and wage growth.
That sentiment is even stronger, up from 58% in February 2022. Inflation has cooled considerably Over the past year.
“Yes, the headline numbers about inflation are probably moving in the right direction. But it doesn’t feel that way,” Lorna Sabbia, head of retirement and personal wealth solutions at Bank of America, said in an interview. He spoke at
According to a Bank of America survey, high inflation is the main reason why only 42% of employees say they are doing well financially. This is the lowest percentage in the survey’s 13-year history.
Similarly, 64% of employees say they feel financially stressed. Among older millennials, from ages 35 to 44, 80% report feeling stressed about money.
And women are much more worried than men.
According to the Bureau of Labor Statistics, consumer prices rose 3.7% in August from a year earlier.It is from below 9.1% in June 2022 The first time gas prices soared above $5 a gallon.
Prices are not rising as fast as they were in June 2022, but they are still rising.everything from eggs car Rental prices for a night out at a restaurant are significantly higher than they were pre-COVID-19. The average family is Spend about $700 more each month According to Moody’s Analytics, when it comes to the same products and services compared to two years ago,
As inflation accelerated in mid-2021, prices began to rise much faster than wages. This means that real wages, adjusted for inflation, have actually shrunk.
But the situation began to reverse earlier this year, with wages finally rising slightly faster than prices, according to data from the Bureau of Labor Statistics.
Bank of America’s survey results highlight why many Americans don’t seem to like Bidennomics and give President Joe Biden poor reviews of the economy. Unemployment rates remain at historically low levels.
in ABC News/Washington Post poll A survey released last weekend found that 44% of Americans say the economy is worse off under the Biden administration, the most of any president in an ABC/Post poll since 1986. it was high.
The White House has been getting more blame than credit for the economy lately.
A CNN poll released earlier this month found that 58% of the public They say Biden’s policies have worsened the economic situation.
Beyond political polls, there are other signs of economic stress.
Credit card debt exceeds $1 trillion For the first time in history.more Americans credit card delinquency and car debt. And the number of people Sniffing your 401(k) account This is due to a sudden increase due to financial difficulties.
Women in particular are under economic pressure.
According to a Bank of America survey, only 38% of women say they are financially well-off. This is the lowest level in five years and down from 55% last year.
“That’s a huge decline. Women are far more stressed about finances than men,” said Sabbia, the Bank of America executive.
According to Bank of America, nearly one in four women (23%) say financial stress keeps them up at night, compared to just 5% of men. Just over half (54%) of women surveyed are worried that they will be unable to make a living because of inflation, compared to 32% of men.
Additionally, 39% of women surveyed said they had had to seek additional employment to cope with rising costs, more than twice as many as men (17%).
The Bank of America study also found large disparities between ethnic groups.
61% of Asian employees say they are doing well financially, compared to 44% of white employees, 40% of Hispanic employees, and 35% of black employees It was only.
Sabbia said the message to employers is worrying and highlights why it is important to provide workers with financial resources such as budgeting tools and expert advice.
“There was a time when companies didn’t think it was their duty to keep their employees financially happy,” Sabbia says. “Companies now realize that it has a direct impact on productivity, absenteeism, engagement and loyalty.”
In other words, having financially stressed employees is bad for business.