According to a Harris poll commissioned by DailyPay and financing our future
77% say the stress of managing finances affects their health
22% of hourly workers report using payday loans in 2022
NEW YORK, June 22, 2022 /PRNewswire/ — High inflation and record gas pump prices are making it difficult for many American hourly workers to cover expenses and save for the future, according to a new Harris poll of more of 600 hourly workers commissioned by DailyPay and Funding Our Future. These tough economic realities have hit some communities harder than others: Among hourly workers, 39% of women say they save less than a year ago, compared to just 28% of men; and 40% of hourly workers whose household income is less than $100,000 say they save 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 could be hit the hardest by these challenges, with 81% of hourly workers saying rising 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 struggled to pay their expenses this year. Groceries (49%), gas (48%), utilities (40%) and rent/mortgage (34%) top the list of expenses they struggle to pay. These challenges are colored by the fact that 35% of all hourly workers report having received no raise in the past year, a figure that rises to 49% for hourly workers in households with incomes less than $50,000 a year.
The struggle to pay for basic necessities also weighs 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 for American families,” said Shai Akabas, director of economic policy at the Bipartisan Policy Center, which founded Funding Our Future. “It is crucial that we increase access to tools such as emergency savings accounts and pay-as-you-go that help workers save and weather turbulent times.”
To make ends meet, 22% of hourly workers say they have taken out a personal loan this year, including nearly a third (31%) of those aged 18 to 34.
Looking for a way to help their employees through these difficult times, a growing number of employers are offering pay-as-you-go as a financial wellness benefit. Ten percent of hourly workers say they use an on-demand payment app to cover their bills when they don’t have money.
“Employers have the opportunity to strengthen the bond with their employees and provide them with benefits that can help them through uncertain economic times,” said Jeanniey Walden, chief innovation and marketing officer at DailyPay.
In an independent study conducted by the Aite Novarica Group, 4 out of 5 respondents said that having access to compensation at the request of their employer eliminated their dependence on payday loans or overdraft fees.
To learn more about the survey, click HERE.
This survey was conducted online in United States by The Harris Poll on behalf of Daily Pay and Financing our future of May 24-26, 2022, among 2,032 American adults ages 18 and older, of whom 654 are hourly workers. The sampling precision of Harris online polls are measured using a Bayesian credibility interval. For this study, the sample data is accurate to within +-2.8 percentage points using a 95% confidence level. For 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 the shortcomings of our existing system, encourage more people to save, advance financial literacy, and promote solutions that ultimately improve the financial security of all Americans as they age. For more information, visit https://fundingourfuture.us/.
About Daily Pay
DailyPay, Inc., powered by its cutting-edge technology platform, is on a mission to build a new financial system. Partnered with some of America’s top employers, including Dollar Tree and Adecco, DailyPay is the recognized benchmark for on-demand payment. With its vast data network, proprietary funding model and connections to over 6,000 banking system endpoints, DailyPay ensures that money is always in the right place at the right time for employers, merchants and financial institutions. DailyPay develops the technology and the mindset to reinvent the way money moves, from the start of work. DailyPay is headquartered in New York Citywith operations based in Minneapolis. For more information, visit www.dailypay.com/press.
CONTACT: [email protected]