Inflation Continues To Have a Negative Impact on Hourly Workers' Finances

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Sep 04, 2024, 09:00 ET

New DailyPay/American Savings Education Council Poll Reveals the Impact Hourly Workers' Financial Situation Has On Their Mental Health and Ability To Provide for Themselves/Families

NEW YORK, Sept. 4, 2024 /PRNewswire/ -- Even with inflation cooling, members of the American workforce are feeling the impact of the steady rise in prices for goods and services, with many of the youngest workers experiencing financial vulnerability. New research commissioned by DailyPay and the American Savings Education Council and conducted by The Harris Poll among over 600 U.S. hourly workers finds that 82% of hourly workers—including 88% of Gen Z hourly workers—report that inflation has had a negative impact on their finances, similar to the 85% of hourly workers who said the same in last year's study.

For many Gen Z hourly workers (ages 18-28), their current financial situation has had a negative impact on their ability to follow their dreams (42%), their mental health (40%), and their ability to provide for themselves/families (40%). On a positive note, more than 2 in 5 (43%) Gen Z hourly workers report that they are doing better financially today compared to a year ago.

"Despite indications of optimism, many young workers are grappling with serious challenges and concerns about economic uncertainty that hinder their ability to meet current financial obligations and save for the future," said Lettie Nocera, Director of the American Savings Education Council. "We must equip them with the necessary tools to achieve lifelong financial resiliency."

The poll also revealed that 92% of Gen Z hourly workers associate potential benefits from having access to their earned wages after each shift, such as paying bills on time (48%), being able to afford necessities (46%), saving for the future (42%), or staying out of debt (36%). Similarly, most Millennial (ages 29-42) hourly workers (87%) and hourly workers in all age groups (82%) identify some benefit from having access to their earned wages after each shift.

"Inflation continues to be a significant challenge for so many American hourly workers, in particular those just starting out on their career journey," said Carly Brush, Senior Vice President, HCM, DailyPay. "The employer-sponsored benefit of earned wage access is a low-cost or no-cost way to help employees to take control of their finances and make ends meet during these uncertain economic times."

Survey Methodology
This survey was conducted online within the United States by The Harris Poll on behalf of DailyPay and the American Savings Education Council from August 6-8, 2024, among 665 U.S. adults ages 18 and older who 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 +/- 4.4 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact David Schwarz - [email protected]

About DailyPay, Inc.
DailyPay, Inc. is transforming the way people get paid. As a worktech company and the industry's leading earned wage access solution, DailyPay uses an award-winning technology platform to help America's top employers build stronger relationships with their employees. This voluntary employee benefit enables workers everywhere to feel more motivated to work harder and stay longer on the job while supporting their financial well-being outside of the workplace. DailyPay is headquartered in New York City. For more information, visit www.dailypay.com/press.

About the American Savings Education Council
The American Savings Education Council (ASEC) is a unique public-private partnership with approximately 100 partner organizations and agencies across the nonprofit, academic, trade association, corporate, and government sectors. ASEC convenes senior industry representatives, regulators and lawmakers, and other key stakeholders to foster open dialogue and advance critical issues related to financial well-being, bringing attention to retirement and financial security while also educating the public and policymakers through events, research, and media.

Media Contacts:
David Schwarz
[email protected]

Adriana Ball
[email protected]

SOURCE DailyPay