According to PYMNTS Intelligence’s recent edition of “New Reality Check: The Paycheck-to-Paycheck Report: Why One-Third of High Earners Live Paycheck to Paycheck,” six in 10 consumers say they live from one paycheck to the next. Even those earning more than $100,000 each year are impacted: 48% report living paycheck to paycheck.
The study found that most consumers’ wage increases have lagged inflation over the last two years. This may explain why PYMNTS Intelligence found that about 38% of workers anticipate wage increases this year, down from 43% who expected wage increases in 2023. Those living paycheck to paycheck and have issues keeping pace with their bills are even more pessimistic: Just 29% say they expect a salary increase in the year ahead.
For many workers, the prospect of stagnant wages might inspire them to start looking for a better job. However, as another PYMNTS Intelligence survey found, just one in five U.S. workers say it’s highly likely they will switch jobs this year.
As the data above illustrates, Generation Z workers show the strongest inclination to change jobs in 2024. While 20% say they are somewhat likely to look for new opportunities this year, nearly 38% say they are very or extremely likely to do so.
Perhaps driven by a sense of necessity, 56% of paycheck-to-paycheck workers who are currently having issues keeping up with their bills say they are somewhat, very or extremely likely to find a new role in 2024. These struggling consumers are considering changing jobs at nearly twice the rate of those not living paycheck to paycheck.
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