A near majority of Americans, 49%, are living paycheck to paycheck, according to a new survey by the First National Bank of Omaha.
The survey also found that 53% of respondents do not have an emergency fund that covers at least three months of expenses. Further, 42% say their most relied-upon personal finance resource is a spouse or family member.
These findings come as median hourly wages in 2019 increased by just 1%, according to a report released Thursday by the Economic Policy Institute, a left-of-center think tank. The median wage last year was $19.33 per hour, which translates to about $40,000 per year for a full-time, full-year worker, according to the institute.
“Wage growth for low- and middle-wage workers continues to be slower than would be expected in an economy with relatively low unemployment,” said EPI senior economist Elise Gould in prepared remarks for her report. “Given this sluggish wage growth, policymakers should not presume that the economy has already achieved full employment.”
Wage growth has been sluggish despite years of low unemployment, a disappointment that is attributable, at least partly, to the fact that many people in recent years entered the labor market and have secured jobs. That’s good for workers and families, but it also gives employers more hiring options, which depress wages.
“If the participation rate remained as low today as it was four or six years ago, wages probably would have inched up a little faster,” Gary Burtless, a senior fellow of economic studies at the Brookings Institution, recently told the Washington Examiner.
Despite the lack of wage growth, the First National Bank of Omaha survey found that 91% said having better money habits is a goal for 2020, and 83% said they plan to keep and stick to a monthly budget.
