Why Job Security No Longer Shields Paycheck-to-Paycheck Consumers

The May 2026 PYMNTS Consumer Expectations Index shows a consumer economy where job confidence is holding up, but financial resilience and financial flexibility are weakening for those who live paycheck to paycheck and struggle to pay their bills. The gap between consumers not living paycheck to paycheck and those who are struggling isn’t just about income. It’s also about whether households have savings, emergency capacity and financial options to act on their optimism.

Consumer Financial Resilience

Sentiment Split

Roughly two in three American consumers lived paycheck to paycheck in early 2026. Within this group, roughly 40%–45% report comfortably paying their monthly bills, while 20%–25% consistently struggle.

The roughly one in three consumers not living paycheck to paycheck scored 61.9 on the overall PCEI in May, up from 61.0 in April, indicating a broad boost in financial confidence. Those living paycheck to paycheck without issues paying their monthly bills also grew more optimistic, nudging up to 56.2 from 53.8 the month before. (A lower score on the 100-point index and its subindexes, where 50 is neutral, indicates declining confidence.)

Meanwhile, those living paycheck to paycheck and struggling to pay bills slipped to 40.6 from April’s 41.7. The 21-point gap in May between consumers not struggling and those scrambling to make ends meet shows how households living in the same economy experience very different levels of financial strain.

The Financial Resilience Divide

The household financial resilience subindex produced the widest gap in the broad index. Consumers not living paycheck to paycheck scored 71.3, compared with 37.8 for those living paycheck to paycheck and struggling to pay bills. The gap has widened since December 2025, showing that stressed households have less room to pay bills and debt and absorb financial shocks.

Emergency Cliff

Consumers living paycheck to paycheck and struggling to pay bills scored just 24.5 on the emergency readiness subindex, compared with 85.4 for those not living paycheck to paycheck. The same stressed group scored 48.4 on the future finances subindex, indicating a clear split between hope for improvement and the ability to handle a $1,200 emergency today.

Macro Pressure

All three consumer groups scored below 50 on the macroeconomic and buying climate subindex, but stressed consumers fell the fastest. The score for consumers living paycheck to paycheck and struggling dropped to 36.3 in May from 37.5 in April, down eight points from December 2025. The data suggests that constrained households feel the same economic pressure as everyone else but have fewer buffers to manage it.

Job Security and Financial Resilience

Labor sentiment is the strongest part of the main index, but it hides a key weakness. Consumers living paycheck to paycheck and struggling to pay bills scored 79.2 on job security, yet only 36.3 on job mobility. They feel safe in their current jobs but doubt they could replace their income if displaced.

Methodology

This Data Book is based on “Sentiment Split: Consumers Feel Hopeful Until the Bills Arrive,” the May 2026 edition of the PYMNTS Intelligence exclusive series The PYMNTS Consumer Expectations Index. The report is based on a May 2026 survey of 2,465 U.S. consumers. The index measures 11 dimensions across three areas: household financial resilience, macroeconomic and buying climate, and labor market security. Results are segmented by paycheck-to-paycheck status to show how financial resilience, financial strain and spending capacity vary across households.