Paychecks Can't Keep Up With Bills—And Workers Are Drowning

American workers have one big complaint about their jobs: they don't get paid enough to keep up with the cost of living.

Even with cost-of-living adjustments or pay increases, four in 10 workers say their income hasn't kept up with expenses, according to a new SurveyMonkey Workforce Survey of more than 3,000 Americans.

"The American paycheck isn't keeping up with American life," Eva Chan, career expert at Resume Genius, said.

Everything Costs More

Heading into the 2026 midterm elections, cost-of-living concerns are front and center at kitchen tables across the country. Groceries cost more. Car insurance costs more. Everything costs more. Savings are shrinking, credit card debt is piling up, and household budgets are stretched thin.

And workers don't have a lot of options to fix it. Job insecurity and anxiety have spread with hiring slowdowns and waves of layoffs. A lot of people are sticking with the job they have rather than hunting for a new one, even if it means harder negotiations for better pay.

Only one in five workers say their pay increased more than inflation over the past year. One in three say their pay kept pace with higher living expenses. The math isn't matching.

Not Enough Saved for an Emergency

The gap between what American employees make and what they spend on basics has put even more people in shaky financial situations.

More than half of workers have less than three months of living expenses saved up in case of a layoff. Nearly a third only have enough to last one month. Almost a quarter could hold out one to two months.

Forty-two percent of employees say their savings can cover three months or more. Sixteen percent have three to five months saved. Twelve percent have six to 12 months. Fourteen percent have more than a year saved up.

Those last numbers sound better until you realize that's a minority of workers. Most people are one layoff away from serious trouble.

Financial Stress Is Everywhere

Financial stress has become a regular feature in the workplace these days.

More than half of employees are dealing with financial strain, according to last year's PwC Global Workforce Hopes and Fears Survey. Fewer than half of employees in the survey got a raise in the previous year.

Social media is full of tearful videos about how hard it's become to make ends meet. Fourteen percent of employees can't pay their bills each month or struggle to, PwC found. Another 42% pay their bills with little or nothing left over for savings. That's more than half the workforce experiencing financial strain in 2025.

"I have to work 40 hours a week just so I can have a place to live," one woman said in an Instagram post. "Forty hours a week makes me $2000 a month and my rent is $1,660. So I work 40 hours a week so I can have a two-bedroom apartment and an extra $300 a month. Like, that doesn't even cover my phone, internet, food."

Almost three-quarters of human resources professionals surveyed in 2024 by ZayZoon said covering basic necessities like rent and groceries topped the list of their employees' stresses. More than half—61%—say their employees live paycheck to paycheck. Almost all report workers experiencing at least one serious financial setback like personal bankruptcy, homelessness, or eviction.

What Workers Actually Want

Getting employers to pay for health care tops workers' wish list of workplace benefits. Half of workers say health care premiums fully paid by their employer is their number one request.

Most working-age Americans get health insurance through work, and their employers pick up most of the tab. But what's left over is significant, especially now that health insurance bills are rising faster than paychecks and employers are shifting more of the burden to workers with higher deductibles and copayments.

Other health benefits rank high too. Twenty-six percent want a health or wellness stipend. Twenty-two percent of parents with kids under 18 want paid parental leave. Twenty-one percent want paid family or caregiver leave.

Other desired benefits reflect the financial crunch workers are facing. Thirty-two percent want a 401(k) match. Twenty-eight percent want unlimited PTO. Twenty-two percent want free food on the job. Eighteen percent want a transportation stipend. Seventeen percent want student loan repayment help.

Four in 10 workers say their workplace offers financial education or planning resources. More than a third said their workplaces don't offer that benefit. One in four aren't sure.

The Bottom Line

The picture is pretty clear. Paychecks aren't keeping up with bills, most people don't have enough saved for emergencies, and financial stress is eating away at workers across the country. Employers can help by covering more health care costs and offering financial planning resources, but ultimately, people need to make more money.

It's not complicated. It's just not happening.

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