61% Of Americans Are Living Paycheck to Paycheck: Report

Vignesh Karunanidhi
61% Of Americans Are Living Paycheck to Paycheck: Report
Source: Odin Land

A strong majority of American adults are still living paycheck to paycheck, according to a new report. The study by LendingClub found that as of June, 61% of U.S. adults said they were subsisting paycheck to paycheck, unchanged from a year ago.

The data illustrates how, even with job growth, many households continue to face economic hardship. Experts say several factors are driving the lingering financial insecurity, especially high inflation that has outpaced wage gains.

Report uncovers number of paycheck-to-paycheck dependent Americans

LendingClub’s report found that about three-quarters of consumers earning under $50,000 and 65% of those making $50,000 to $100,000 were living paycheck to paycheck in June. The situation was less dire for higher earners – 45% of those making over $100,000 reported a paycheck-to-paycheck existence.

Also read: United States Witnesses $5.9 Trillion Vanish in Wealth in 2022

But inflation appears to be taking a notable toll on many Americans, regardless of income level. Another CNBC survey in the month of March found that 58% of U.S. adults say they are subsisting paycheck to paycheck. Moreover, 52% of respondents reported feeling more financially stressed than before the COVID-19 pandemic. They cite factors like inflation, rising interest rates, and inadequate savings.