Report finds many millennial frontline workers living paycheck to paycheck

Nearly half of frontline workers say their income doesn’t cover their daily expenses, and millennials are struggling more with expenses than Gen Z or Gen X.

Those and other disturbing finds are part of an inaugural report from financial services company Clair that detailed the financial habits of working millennials (currently between the ages of 27 and 42) and members of Gen Z (those under age 26). A smaller percentage of data pertaining to Gen Xers (those currently between the ages of 43 and 58) also was included. Data was based on analyzed anonymized information from Clair customers plus results from a proprietary survey of frontline workers — typically considered to be employees who interact with customers or manufacture products — across the United States.

Many frontline workers (45%) said they are living paycheck to paycheck, with an average of less than $100 in their checking and savings accounts combined. Per Clair’s survey, nearly a quarter (23%) of American frontline workers feel negatively about their current income. This problem has gotten worse in recent years, according to researchers, with spending per person increasing by 24% year-over-year — likely due to inflation and the fact that pre-pandemic spending on recreational activities like travel and dining out have increased.

The financial struggles millennials, in particular, face dates back to the Great Recession of 2008, researchers noted, which is when many of them entered the workforce. The report indicates that millennial spending increased by 32% on average over the last year, compared to 19% for Gen Z and Gen X. This could be due to the fact that millennials also are at the stage in their lives where their expenses are increasing as they get married, buy cars and a home, and start a family, researchers said.

Related: Managing millennials, Gen Y, Gen Z: Recruiting and retaining tomorrow’s workforce

Rays of light?

Frontline workers across the U.S. are divided about the country’s economic future. Clair’s survey found that more than one-third (34%) have negative feelings about the country’s economic outlook for the next year. But only about 1 in 5 feel negatively about their personal economic outlook for the next year.

One way workers can gain a stronger financial footing and bridge the gap on their monthly bills, plan their finances better, and balance their spending is by getting paid more often, researchers said. Based on Clair’s survey, nearly two-thirds of frontline workers (62%) wish they were paid more frequently than they are now, and 83% would like to be paid daily — or at least weekly.