Washington, DC – High inflation and record prices at the gas pump are making it tough for many American hourly workers to cover their expenses and save for the future, according to a new Harris Poll of more than 600 hourly workers commissioned by DailyPay and Funding Our Future. These difficult economic realities have hit certain communities harder than others: among hourly workers, 39% of women say they are saving less than last year, compared to only 28% of men; and 40% of hourly workers with a household income of less than $100,000 say they are saving less than last year or not at all, compared to 31% of hourly workers with a household income of $100,000 or more.
The new data show that hourly workers may be bearing the brunt of these challenges, with 81% of hourly workers reporting that higher gas prices have had a negative effect on their ability to pay other expenses.
Moreover, the poll shows that 75% of hourly workers have struggled to pay expenses this year. Groceries (49%), gas (48%), utilities (40%), and rent/mortgage (34%) top the list of expenses they have struggled to pay. These challenges are colored by the reality that 35% of all hourly workers report receiving no pay increase over the past year, a figure that jumps to 49% for hourly workers in households making under $50k a year.
The struggle to pay for basic necessities is also taking a toll on personal wellbeing: 77% of hourly workers say that stress from managing their finances has negatively impacted their health.
“First the pandemic’s immediate economic fallout, now record inflation and high gas prices have reminded us how important financial security and flexibility are for American families,” said Shai Akabas, Director of Economic Policy at the Bipartisan Policy Center, which founded Funding Our Future. “It’s crucial that we increase access to tools like emergency savings accounts and on-demand pay that help workers save for and weather turbulent times.”
To make ends meet, 22% of hourly workers say they have taken out a payday loan this year, including nearly one-third (31%) of those aged 18 to 34.
Looking for a way to help their employees navigate these challenging times, an increasing number of employers are offering on-demand pay as a financial wellness benefit. Ten percent of hourly workers report leveraging an on-demand pay app to help cover their bills when they don’t have the cash.
“Employers have an opportunity to strengthen the bond with their employees and empower them with benefits that can help them through uncertain economic times,” said Jeanniey Walden, Chief Innovation and Marketing Officer, DailyPay.
In an unrelated study conducted by the Aite Novarica Group, 4 in 5 of those polled stated that access to on-demand pay from their employer eliminated their reliance on payday loans or overdraft fees.
This survey was conducted online within the United States by The Harris Poll on behalf of DailyPay and Funding Our Future from May 24-26, 2022, among 2,032 U.S. adults ages 18 and older, among whom 654 are hourly workers. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +-2.8 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].
Funding Our Future, a coalition of roughly 60 organizations spanning the academic, nonprofit, trade association, and corporate sectors, is dedicated to making long-term financial security a reality for households across the country. Funding Our Future seeks to highlight the gaps in our existing system, encourage more people to save, advance financial literacy, and promote solutions that ultimately improve financial security for all Americans as they age. For more information, visit https://fundingourfuture.us/.
DailyPay, Inc., powered by its industry-leading technology platform, is on a mission to build a new financial system. Partnering with some of America’s best-in-class employers, including Dollar Tree, and Adecco, DailyPay is the recognized gold standard in on-demand pay. Through its massive data network, proprietary funding model and connections into over 6,000 endpoints in the banking system, DailyPay works to ensure that money is always in the right place at the right time for employers, merchants and financial institutions. DailyPay is building technology and the mindset to reimagine the way money moves, from the moment work starts. DailyPay is headquartered in New York City, with operations based in Minneapolis. For more information, visit www.dailypay.com/press.