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Dive Brief:
- Workers are hamstrung from achieving life milestones by stagnant salaries and rising costs, according to the results of a recent survey by career website Zety.
- Of the 1,065 U.S. workers surveyed, half said they don’t feel able to start a family or grow theirs on their current salary, and 40% said they aren’t able to save for retirement. Meanwhile, 37% said they can’t afford to buy a home.
- More than 1 in 3 workers reported feeling hopeless, anxious or frustrated about the chances they can meet their life goals on their current salary, and more than 1 in 4 are looking for new job opportunities to reduce their financial stress, the survey found.
Dive Insight:
“This survey highlights a troubling trend where financial instability is crushing workers’ ambitions and emotional well-being,” said Jasmine Escalera, career expert at Zety. “When workers can’t see a path to major life milestones like homeownership or retirement, it’s not just about numbers on a paycheck — it’s about hope slipping away.”
To that end, 36% of workers said they felt less motivated to do more than expected at work, and 20% reported being more focused on increasing their income than trying to do a better job at work, per the survey.
For nearly half, that means taking on extra responsibilities at work to boost pay, while for others it means looking for better-paying positions elsewhere.
Some companies are turning to signing bonuses or other one-time bonuses over more permanent wage hikes as a flexible and cost-effective recruitment option, an Indeed economist said recently.
Yet the gap between workers’ wages and the rising cost of living is causing real concern, as 73% of workers said they struggle to afford anything but their basic living expenses, and 12% said they can’t always afford their basic living expenses, a Resume Now report from January found.
