Inflation reality check: 3 out of 4 Gen Z workers under ‘significant’ stress
The youngest members of the labor market say inflation has been noted as a major detriment to their finances over the past year as they struggle to pay bills on time, says a Harris poll.
A startling three out of four Gen Z hourly workers are stressed managing their finances, and that stress is negatively impacting their health. New data from a recent Harris poll (with help from Funding Our Future and DailyPay) illustrates the challenges faced by the youngest sector of the workforce. Many hourly workers in the Gen Z demographic (those aged 18-26 years old) are struggling to manage their finances, pay bills on time, and keep up with their mental health. Inflation (currently around 3%), has been noted as a major detriment to Gen Z hourly worker’s finances over the past year:
- 96% find managing their finances stressful
- 85% say inflation has negatively impacted their finances in the past year
- 79% don’t always have enough cash to pay bills on time
The negative emotions associated with making ends meet is understandable, especially for younger workers. More than half (61%) of Gen X report not always being able to pay a bill on time, yet Gen Z (79%) and millennial (76%) hourly workers are affected even more harshly. Some Gen Z hourly workers report using an on-demand pay app when they are short on cash for immediate expenses.
Many respondents feel they would benefit from getting paid more frequently at work, some even considering leaving their current employer for one that allows them to access their pay every day, as they earn it. Gen Z workers are eager to utilize flexible payment strategies, with half of respondents agreeing that they would benefit from a more frequent payment system.
Related: Keep it personal: Americans don’t want a one-size-fits-all solution to fix their finances
“The youngest members of our labor market are experiencing significant financial stress, which has a detrimental impact on their health as well as the opportunity for a secure future,” said Lettie Nocera, Senior Manager of the Funding Our Future coalition at the Bipartisan Policy Center. “We must continue to advance innovative solutions that meet the evolving needs of all American workers.”