A new survey shows that most hourly workers have little to no emergency savings as inflation continues to climb.
The survey from payment platform Branch found that 83% of 3,000 hourly worker respondents had less than $500 in emergency savings, while almost half said they had none at all.
This is higher than the figures shown in Branch’s 2021 survey, which saw 41% of respondents stating they had no emergency savings.
Workers expressed the desire to add to their savings, with one in four saying they would put it in their emergency savings. However, 40% said they would put a $1,000 bonus towards existing debts.
“Even with higher wages, rising costs of essential expenses have created additional obstacles and setbacks for hourly workers looking to establish greater financial security,” said Atif Siddiqi, founder and CEO at Branch.
Unfortunately for these workers, financial health may be out of reach as the cost of living, including bills, continue to climb. In fact, a report from the Federal Reserve revealed that 32% of Americans would have trouble paying a $400 emergency expense.
While experts suggest having between three to six months’ worth of wages in savings, rising inflation, mass layoffs, rising interest rates, and an incoming recession could leave hourly workers picking up multiple jobs in the near future.