SAN FRANCISCO, CA \u2014 Though hourly wages have grown since the Great Recession, a new analysis shows Americans across the country have to put in more time at work to pay basic expenses, including rent and groceries \u2014 and California is home to one of the most hard-working workforces.<\/p>\n
According to a new report from InvestorsObserver, some analysts believe the U.S. is showing early signs of a looming financial crisis as Americans work more days every year to pay essential living expenses.<\/p>\n
InvestorsObserver analyzed hourly earnings compared to rent, groceries, and savings for a used car across the United States from 2007 to 2025. On average, Americans work 15.6 extra days per year to cover these essentials.<\/p>\n
California also has one of the highest average hourly wages in the country at $40.93 but workers still clock in more hours on than average to pay for essentials.<\/p>\n
Comparing 2025 to 2007, California ranked fifth in the country for states requiring the most work days to afford essentials each year with 15.8 extra days. <\/p>\n
“The Golden State\u2019s notoriously expensive housing market continues extracting an ever-growing time tax from its workforce,” InvestorsObserver said.<\/p>\n
Per InvestorsObserver, the average American earned $20.75 per hour in 2007. Hourly wages had risen to an average of about $34.35 per hour, about a 65.6 percent increase, but the cost of expenses didn’t keep up with wages.<\/p>\n
“The problem is that the cost of basic necessities didn\u2019t just rise 65.6 percent. They ran far ahead of it,” InvestorsObserver said.<\/p>\n
Delaware ranked the worst with workers required to clock in 25.4 extra 8-hour workdays each year to maintain the same standard of living in 2007.<\/p>\n
“Our new analysis helps explain why people nationwide now have to work up to 25 extra days a year just to cover rent, groceries, and save for a used car \u2013 time stolen from vacations, kids\u2019 soccer games, and weekends off,” InvestorsObserver said.<\/p>\n