New Wage Survey Finds American Workers Barely Able to Afford Housing, Food, Fuel  

Labor Landscape

Hit by a double whammy of high inflation and the ongoing Middle East war, American workers are struggling to keep their heads above financial chaos.  

Resume Now’s new Wage Reality report says the  gap between workers’ wages and the rising cost of living is creating financial stress among U.S. workers.  The report found 73 percent of workers struggle to afford anything but their basic living expenses.  Of the more than 1,000 workers surveyed, 12 percent can’t always afford their basic living expenses, and 24 percent fight to cover essentials.  

 And one-third of workers say their salary hasn’t kept pace with inflation, and 55 percent don’t think their salary is as high as it should be.  

 Workers  pointed to rising housing costs, increasing prices for essentials, salaries that don’t keep up with inflation and their inability to save for emergencies and the future as causes of their financial stress, the report said. The report also found that rising costs and stagnant wages are making it harder to make ends meet.   

Industry experts argue that workers need to advocate for fair pay adjustments by staying informed about industry salary benchmarks or participating in discussions about cost-of-living raises.  

“Of course, we are in tough times and especially for young people,’’ said Michael Spring, a professor emeritus from the University of Pittsburgh.  “The cost of housing is such that there are few homes millennials and Gen Z can afford on early career salaries and rents, especially in large cities that is difficult to put away  money for a 20 percent down payment on a starter home in the $200,000 range. The problem of saving for the younger people is compounded by the fact that many of them have student loans to pay back,’’ Spring said.  

The ongoing Middle East war also is contributing to the struggle American workers are having to make ends meet.  

“It may be felt more immediately  to consumers  as the cost of transportation has obviously gone up,’’ said Frank Gamrat, executive director of the Allegheny Institute for Public Policy.  “Here in western Pennsylvania, fuel prices have jumped on average, 0.40  per gallon. That will affect the costs of  goods being moved by truck to retailers and just about any business that has goods supplied by truck.  These businesses will then try to pass on those increased costs to customers,’’ said Gamrat.  

Gamrat further noted that the interesting question will be the response of other OPEC countries to the war.  “Will countries like Saudi Arabia pick up the slack to ensure a steady supply of oil? ‘ quipped Gamrat.  

Spring adds that our economic dilemma at home is made less “acceptable’’ by the obvious change in the world situation.  “As we moved toward a zero growth society – like much of the developed world – we have many more retired people supported by many fewer wage earners,’’ Spring said.  

The report also showed that 42 percent of employees said their savings can cover three months or more of living expenses. While only 16 percent said they have three to five months worth of living expenses.  

The report numbers also show that  some workers are living beyond their means. Spring recalls that as a child his family only ate out two nights a year.  “I think today that kind of lifestyle includes less eat at home and watch free TV, and more eat out and experience more “luxury’ life styles,’’ said Spring.   

And the numbers prove Spring’s observation. Forty-seven percent of credit cardholders have a massive balance. About one in five debtors or 22 percent don’t think they will ever pay it off, according to Bankrate.  

As of early 2026, the average American worker’s credit card balance per person is $6,735. Total U.S. credit card debt has surpassed $1.3 trillion. While average debt per household is roughly $11,019, debt varies by generation, with Gen X carrying the highest average balances, according to the U.S. Treasury Department.  

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