Zety, a career service dedicated to helping people improve their cv’s and cover letters, surveyed 1,000 U.S.-based workers in mid-February 2024 to develop a better understanding of the relationship between people’s career, their financial situations, and their spending habits.
According to the report, Zety’s Financial Habits and Health Survey, concerns about layoffs, perceptions of a cooling job market, and overall inflation have caused the vast majority of workers to reduce their spending. Roughly two-thirds (60 per cent) report that they are trying to spend less because they’re worried about layoffs. Half (53 per cent) are reducing their spending due to concerns about the cooling job market. Eighty-five percent said inflation has impacted their spending habits.
Additional findings about the state of workers’ financial habits and health include:
More than 4 in 10 (42 per cent) say their financial situation is less stable today compared to last year (with 23 per cent describing themselves as much less financially stable now than last year and 19 per cent as slightly less financially stable).
- 36 per cent say their financial situation is about the same.
- 22 per cent reported they are more stable financially.
The top financial challenges employees face in 2024 include contributing to one’s savings account (20 per cent), maintaining the same standard of living as in 2023 (17 per cent), paying the bills on time (16 per cent), and paying off credit card debt (15 per cent).
- About 1 in 10 (12 per cent) claim they do not have any financial struggles.
Salary
Almost half (45 per cent) of workers feel that they are underpaid (26 per cent very underpaid, 19 per cent slightly underpaid).
- 1 in 10 say they are overpaid, and 45 per cent believe they are paid fairly.
Bonuses
For half (51 per cent) of those surveyed, their bonuses were non-existent or lower than expected in 2023.
- Nearly 1 in 5 (18 per cent) did not get a bonus in 2023 even though they were expecting one.
- For 18 per cent, it was a littlelower, and for 15 per cent a lot lower than expected.
“Robert Kiyosaki once said that money is not the most important thing in life, but it does affect everything that is important. Looking at the study findings, it’s hard not to agree with these words,” according to Dominika Kowalska, CPRW and career expert at Zety. “Lack of financial stability and income-related fears negatively influence our overall well being. It’s clear the overall economy and cooling labor market have caused many to become less confident about their employment and financial situations,” Kowalska concluded.
To view the full report with more information, please visit https://zety.com/blog/finances-and-careers.