Cost of living is up. Paychecks are not. Workers are not OK.

As the 2026 midterm elections approach, a growing number of American workers are feeling the strain of a cost of living that is outpacing their earnings. A recent USA TODAY/SurveyMonkey Workforce Survey of over 3,000 workers reveals that four in ten report their income hasn’t kept pace with rising expenses, even with cost-of-living adjustments or pay increases.

Financial Precarity on the Rise

The survey paints a picture of increasing financial insecurity. More than half of workers have saved less than three months of living expenses in case of job loss, with nearly a third having enough for just one month and almost a quarter able to cover only one to two months. This lack of a financial cushion is occurring alongside a slowdown in hiring and reported waves of layoffs, leading many to remain in their current jobs even if better opportunities aren’t available.

Did You Know? Only 1 in 5 workers reported that their pay increased more than inflation over the past year.

The financial pressures extend beyond immediate expenses. According to last year’s PwC Global Workforce Hopes and Fears Survey, more than half of employees are experiencing financial strain, and fewer than half received a raise in the previous year. This stress is visible even on social media, with individuals sharing their struggles to afford basic necessities.

Healthcare Costs a Major Concern

Among workplace benefits, fully employer-paid healthcare premiums are the top request from workers. With health insurance costs rising faster than paychecks, the burden of deductibles and copayments is increasing for many Americans. Beyond healthcare, workers also expressed a desire for benefits like health and wellness stipends, paid parental leave, and assistance with childcare and student loan repayment.

Expert Insight: The data suggests a significant disconnect between wage growth and the realities of daily expenses for a large segment of the American workforce, potentially creating a cycle of financial vulnerability.

Recognizing the need for support, four in ten workers report that their workplace offers financial education or planning resources. However, a substantial portion – more than a third – do not have access to these benefits, and another quarter are unsure if they are available.

What Could Happen Next

If current trends continue, we could see increased pressure on employers to address affordability concerns through wage increases and expanded benefits packages. It’s also possible that the focus on financial well-being will become a more prominent issue in political discourse, potentially influencing policy debates. However, without significant economic shifts, many workers may continue to struggle with financial strain, and job insecurity could remain a dominant concern.

Frequently Asked Questions

What percentage of workers have less than three months of living expenses saved?

More than half of workers have less than three months of living expenses saved in the case of a layoff.

What is the top benefit workers want from their employers?

Half of workers say healthcare premiums fully paid by their employer is their No. 1 request.

How many workers are experiencing financial strain?

More than half of employees are dealing with financial strain, according to last year’s PwC Global Workforce Hopes and Fears Survey.

How are rising costs impacting your financial decisions and outlook for the future?