Cost of Living Outpaces Pay for Millions of U.S. Workers
American workers share a common frustration: their paychecks aren’t stretching far enough to match the soaring cost of living.
Even after cost-of-living adjustments or raises, four in 10 workers say their income hasn’t kept pace with their expenses, according to a new USA TODAY/SurveyMonkey Workforce Survey of more than 3,000 U.S. employees.
As the 2026 midterm elections approach, cost-of-living pressures dominate conversations around kitchen tables nationwide. From groceries to car insurance, prices remain elevated, draining savings, increasing credit card debt and putting household budgets under intense strain.
At the same time, workers feel increasingly limited in what they can do about it. A slowdown in hiring and ongoing layoffs have fueled job insecurity and anxiety. Many employees are choosing to stay put rather than look for new opportunities, even if that makes it harder to push for higher pay.
Only one in five workers report that their pay rose faster than inflation in the past year. About one-third say their wages merely kept up with higher living expenses.
“The American paycheck isn’t keeping up with American life,” Eva Chan, career expert at Resume Genius, which makes resume builder software, said in a statement.
Too little saved to weather a layoff
The widening gap between earnings and basic expenses has left many workers financially vulnerable.
More than half of workers have less than three months of living expenses saved in case of a layoff. Nearly one-third say they could cover only one month, while almost a quarter report having savings to last one to two months.
The USA TODAY/SurveyMonkey Workforce Survey also found:
- 42% of workers say their savings could cover three months or more of living expenses
- 16% have three to five months saved
- 12% have six to 12 months saved
- 14% have more than 12 months saved
Financial stress increasingly common at work
Financial strain has become a widespread reality in the workplace.
More than half of employees report experiencing financial stress, according to last year’s PwC Global Workforce Hopes and Fears Survey. Fewer than half of workers surveyed received a raise in the prior year.
Social media platforms are filled with emotional accounts of how difficult it has become to get by. PwC found that 14% of workers can’t pay or struggle to pay their bills each month, while another 42% manage to pay bills but have little or nothing left for savings. That means more than half of the workforce experienced financial strain in 2025.
“I have to work 40 hours a week just so I can have a place to live,” one woman said in an Instagram post. “Forty hours a week makes me $2000 a month and my rent is $1,660. So I work 40 hours a week so I can have a two-bedroom apartment and an extra $300 a month. Like, that doesn’t even cover my phone, internet, food.”
Nearly three-quarters of human resources professionals surveyed in 2024 by ZayZoon said covering basic necessities such as rent and groceries was their employees’ top source of stress. ZayZoon offers a service that allows workers to access earned wages before payday for a fee.
More than 61% of HR professionals said their employees live paycheck to paycheck, and almost all reported workers experiencing at least one major financial setback, including personal bankruptcy, eviction or homelessness.
Health care costs top workers’ wish lists
Health care is another major expense weighing on workers, and employer-paid coverage tops their list of desired benefits.
Half of workers say having health care premiums fully covered by their employer is their top request.
Most working-age Americans receive health insurance through their jobs, with employers paying a significant portion of the cost. Still, out-of-pocket expenses remain substantial, especially as insurance costs rise faster than wages and employers shift more costs onto workers through higher deductibles and copayments.
Other highly desired health-related benefits include:
- 26% who want a health or wellness stipend
- 22% of parents with children under 18 who cite paid parental leave
- 21% who want paid family or caregiver leave
- 10% who want fertility or family planning assistance
Additional benefits workers say would help ease financial pressure include:
- 32% seeking a 401(k) match
- 28% wanting unlimited paid time off
- 22% hoping for free food at work
- 18% asking for a transportation stipend
- 17% seeking student loan repayment assistance
- 22% of parents wanting free onsite childcare
Workers look for financial planning support
As financial pressures mount, many employees are turning to their workplaces for guidance.
Four in 10 workers say their employer offers financial education or planning resources. More than one-third report that their workplace does not provide such benefits, while one in four are unsure whether those resources are available.
