81% of U.S. hourly workers say rising gas prices have had a negative effect on their ability to pay for other expenses, according to a Harris poll commissioned by DailyPay and Financing Our Future
77% say the stress of managing finances is harming their health
22% of hourly workers report using payday loans in 2022
NEW YORK, June 22, 2022 /PRNewswire/ — High inflation and record prices at gas stations are making it difficult for many American hourly workers to break even and save for the future, according to a new Harris survey of more than 600 hourly workers commissioned by DailyPay and Funding. future. These harsh economic realities have hit some communities harder than others: Among hourly workers, 39% of women say they are saving less than last year, compared to just 28% of men; and 40% of hourly workers with a family 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 shows 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 for other expenses.
Additionally, the survey shows that 75% of hourly workers have had trouble paying 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 tempered by the reality that 35% of all hourly workers report receiving no pay increase in the past year, a figure that jumps to 49% for hourly workers in households earning less. $50k one year.
The struggle to pay for basic necessities is also taking a toll on personal well-being: 77% of hourly workers say the stress of managing their finances has had a negative impact on their health.
“First the immediate economic fallout from the pandemic, now record inflation and high gas prices have reminded us how important financial security and flexibility are to American families,” said Shai Akabas, director of economic policy at the Bipartisan. Policy Center, which founded Funding Our Future. “It’s critical that we increase access to tools like emergency savings accounts and on-demand payments that help workers save and weather turbulent times.”
To make ends meet, 22% of hourly workers say they’ve taken out a payday loan this year, including nearly a third (31%) of those between the ages of 18 and 34.
Looking for a way to help their employees navigate these challenging times, a growing number of employers are offering pay-on-demand as a financial wellness benefit. Ten percent of hourly workers report taking advantage of a pay-on-demand app to help cover their bills when they don’t have the cash.
“Employers have an opportunity to strengthen their bond with their employees and empower them with benefits that can help them through uncertain economic times,” said Jeanniey Walden, director of innovation and marketing for DailyPay.
In an unrelated study by Aite Novarica Group, 4 out of 5 respondents said access to pay-on-demand from their employer eliminated their reliance on payday loans or overdraft fees.
For more information about the survey, click HERE.
This survey was conducted online within the United States by The Harris Poll on behalf of DailyPay Y Financing our future of May 24-26, 2022, among 2,032 U.S. adults age 18 and older, of whom 654 are hourly workers. Sampling precision harris Online surveys are measured using a Bayesian credible interval. For this study, the sample data is accurate to within +-2.8 percentage points at the 95% confidence level. For the full survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].
Funding Our Future, a coalition of approximately 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 gaps in our existing system, encourage more people to save, promote financial literacy, and promote solutions that ultimately improve the financial security of 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 pay-on-demand. Through its massive data network, proprietary financing model, and connections to over 6,000 endpoints in the banking system, DailyPay works to ensure money is always in the right place at the right time for employers, merchants, and financial institutions. . DailyPay is developing the technology and mindset to reimagine the way money moves, from the moment work begins. DailyPay is based in New Yorkwith operations based on Minneapolis. For more information visit www.dailypay.com/press.
CONTACT: [email protected]