A growing share of U.S. workers are struggling to cover expenses as everyday costs continue to weigh heavily on household budgets, according to new survey findings.
PNC Bank’s annual Financial Wellness in the Workplace Report shows that 67 percent of workers now say they are living paycheck to paycheck, up from 63 percent in 2024.
The report surveyed 1,000 U.S. workers aged 21 to 69 who work full time at companies with more than 100 workers. The margin of error is pls or minus 3 percent.
Rising Costs Outpace Wages
Household budgets have been stretched thin in recent years as the cost of living has outpaced wage growth. Inflation surged throughout the pandemic and costs have continued to grow, with consumer prices rising by 24.6 percent between August 2020 and August 2025.
While wages have increased, the Economic Policy Institute found that productivity has grown more than three times faster than pay since 1979. Pandemic-era disruptions also depleted savings, which have been hard to replace, particularly for lower-income Americans, with Pew Research finding nearly half of lower-income households exhausted their emergency funds.
Expert View
Taylor Nelms, vice president of research and insights at the Financial Health Network, said the paycheck-to-paycheck strain is compounded by multiple different financial problems for U.S. households.
“When people say they’re living paycheck to paycheck, they’re often talking about household cash flow, whether income is keeping pace with expenses,” Nelms told Newsweek.
“The percentage of U.S. households that say they spend more or the same as they bring in has been remarkably consistent, hovering around 50 percent over the past several years but right now it’s compounded by high housing costs, insurance premiums, and the return of student loan payments. These are the areas where households feel most squeezed.”
Nelms added that the problem is not just stagnant wages but the rise in unavoidable expenses. “We expect that the increase in people saying they live paycheck to paycheck isn’t just about wages, it’s about rising fixed costs in people’s budgets. Housing, healthcare, and insurance premiums are eating up larger shares of income, and student debt repayments are back on the books. That combination leaves families with little margin for error.”
Composite image created by Newsweek.
Composite image created by Newsweek.
Newsweek Illustration/Canva
Debt attorney Leslie H. Tayne, a finance and debt expert and founder of Tayne Law Group, pointed to the compounding effect of inflation and rising interest rates.
“While several factors have contributed to the growing percentage of Americans living paycheck to paycheck, two of the biggest culprits, I believe, are inflation costs, including rising costs of everyday expenses, such as groceries, and credit card interest rates, which now have the highest average APR to date,” Tayne told Newsweek.
She said many households are relying on credit to pay for necessities, which leaves them vulnerable to mounting balances.
“While some consumers have taken on side gigs to make ends meet, others have turned to credit cards to pay for necessities, such as their electric bill, or to put gas in their car. The problem with swiping a credit card to pay for essentials is that it’s unlikely the consumer can pay back the full sum within 30 days, so they will begin to rack up interest. With interest rates at historically high levels, it’s easier for consumers to fall into the cycle of increasing debt.”
Looking Ahead
Experts warn that things could get worse for paycheck-to-paycheck Americans if economic conditions worsen or safety nets are reduced.
Nelms cautioned that “this risk is likely to grow as changes to government programs, such as reduced access to Medicaid and SNAP [Supplemental Nutrition Assistance Program], take effect. Households relying on these programs are already more financially vulnerable, and the added pressure of a slowing job market could further undermine their stability.”
Tayne suggested targeted policy action. “Aiming to control inflation is a good place to start, such as implementing price caps or windfall taxes on essentials,” she said.
Still, the outlook remains uncertain. “I’m hopeful that the percentage of consumers living paycheck to paycheck will decrease in the next decade, but it really depends on government regulations,” Tayne said. “When it comes to the next few years, I believe that if it doesn’t get worse, I don’t necessarily think it will get better.”