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More than half of Americans are working more hours than they did six months ago, according to J.D. Power. The cost of living crisis has forced people to pull back on their spending, but it’s also translated into people spending more time at work and picking up side hustles.
The number of U.S. consumers who classified themselves as “financially unhealthy” remained unchanged from six months ago. People are working harder just to keep up, and there is no indication that things will turn around in the short run.
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Although the inflation growth rate has cooled off from its 2022 highs, that doesn’t mean prices have gone down. Almost 70% of consumers say that the cost of goods is growing faster than their incomes, per J.D. Power, which has forced many people to work longer hours.
The consumer price index increased by 2.9% year-over-year in August. Naturally, some products and services inflate at faster rates than others, especially housing. Food prices were up by 3.2% year-over-year in August, according to the U.S. Bureau of Labor Statistics.
People have to make ends meet, and while cost-cutting is an effective measure, you eventually reach a limit of how much costs you can cut. Then, it comes down to making more money, and for many people, that means working longer hours.
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The overall financial situation hasn’t gotten worse since J.D. Power reached out to U.S. consumers six months ago, but it hasn’t gotten better, either. Consumers who are vulnerable, overextended, or stressed still make up 64% of Americans, which is the same figure compared to July.
The number of financially vulnerable people usually hovers at around 40%, and it was at that figure in August. J.D. Power also observed that only 68% of consumers say that the price of goods is rising faster than their income. That’s an improvement from 71% in July.
Dramatic financial change often doesn’t come up after a few months. It may take multiple years before policies or life changes result in different financial results. For now, there are more people who are vulnerable, overextended, or stressed about their finances than people who feel like they have healthy finances.
