Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Low-wage employees report high levels of financial stress

Low-wage employees report high levels of financial stress

Financial stress is real for Rita Blalock, 56. In fact, it’s nearly constant companion these days.

Like many of America’s hourly workers, the $12 per hour she earns working at McDonald’s in Raleigh, N.C. doesn’t stretch far enough. “It’s a struggle to keep your head above water. It’s stressful, too,” Blalock tells Fortune.

Blalock has spent nearly a decade at the fast-food chain working nearly every station, she says—except in maintenance or as a cashier. “Some of [the customers] can be nasty. That’s probably why I’ve kept my job so long because I don’t interact with them. I’d rather stay in the back where it’s a little bit safer.”


But despite her time at the chain, Blalock says she’s struggled to keep her finances on track amid rising prices, particularly now with sky-high inflation. To help keep her expenses low, Blalock relies on the free meal she gets during her McDonald’s shift and takes the bus to and from work.

Public transportation presents its own challenges. “The buses here comes when they want to,” Blalock says, adding that sometimes that means she’s late to work. While that wouldn’t be an issue for most salaried employees, even seconds can matter for hourly workers. “That’s pressure. You’ve got to get there within the grace period, or you’re going to hear some flak. That’s something that you don’t want to start your day out with,” she says.

“A lot of people are just stressed out right now and…just don’t know what to do,” Blalock says. “So you go to work and you try to make everything happen, because that’s your only paycheck.”

Living on the edge financially not only affects workers like Blalock, but employers too, according to the Financial Health of Workers in Low-Wage Jobs Report released Thursday by the Financial Health Network. About 21% of workers in low-wage jobs report that their high levels of financial stress negatively affects their productivity and job performance.

Currently, about 44% of the entire U.S. workforce, about 53 million Americans between the ages of 18 and 64, falls into the category of low-wage workers, according to the Financial Health Network’s report. The report categorizes low-income jobs as those that pay less than $17 per hour, or up to $35,360 in an annual salary.

Unsurprisingly, low-wage workers like Blalock are twice as likely as the average employee to identify as financially vulnerable—grappling with most or all aspects of their finances. Most low-wage workers routinely struggle to save, acquire adequate insurance coverage, and pay for essentials like food and rent. Only about 13% of workers in low-wage jobs say they are financially healthy.

60% of workers in low-wage jobs cannot cover three months of expenses with short-term savings

At your current level of spending, how long could you and your household afford to cover expenses, if you had to live only off the money you have readily available, without withdrawing money from retirement accounts or borrowing from friends/family or credit card?


“Workers in low-wage jobs are constantly under financial stress that takes a toll on many aspects of their lives,” Beth Brockland, vice president of workplace solutions at the Financial Health Network, said in a statement.

The burden of struggling to manage their money can extend to their work day. Low-wage workers spend an average of about 1.3 hours a week dealing with their finances at work, including activities like contacting creditors, as well as managing their bank accounts. That adds up to about 66 hours of lost productivity annually from just finance-related issues.

“Employers have a lot to gain by investing in the financial health of their workers, not only to improve workers’ well-being but to foster more engaged and productive employees,” Brockland said.

Higher pay is only part of the equation. Although it’s legal to pay workers just $7.25 in more than 20 states—the U.S. hasn’t raised the federal minimum wage in 13 years—only about 1.5% of all hourly workers make that little, according to a 2021 report from the Bureau of Labor Statistics.

Blalock has worked for McDonad’s in North Carolina for nearly 10 years. Most of that time, her pay was about $8 an hour. But over the last two years, she's received a series of raises that bumped her up to $12 per hour. (North Carolina’s hourly minimum wage is still $7.25.)

Yet while wages have increased overall for workers across the U.S. in recent months, benefits like health insurance and retirement plans are still scarce. Even a stable work schedule can be a huge help to hourly workers. As of fall 2021, nearly two-thirds of workers still get less than two weeks’ notice about their upcoming work schedule, according to the Shift Project. And yet research shows unpredictable work schedules can lead to income volatility that makes it harder to budget for rent, food, and utility payments.

A third of the low-wage workers surveyed by the Financial Health Network report their employer doesn’t offer any employer-sponsored retirement plan. Another 20% are unsure if their company offers retirement options.

When it comes to health insurance, just a third of low-wage workers get coverage from their employer. Among those who aren’t utilizing employer-based health insurance, more than half say it’s because they’re not eligible. And nearly half of those who are eligible say they can’t take advantage because the deductibles and copays are too expensive.

Investing in the financial health of their workers could be a win-win for employers. Not only could it boost productivity and performance, but it also helps with retention. Workers who have these types of financial benefits are much more likely to report wanting to stay at their job for at least the next year, according to the survey.

But it could be have an even bigger impact on hourly workers, especially when it comes to access to health insurance. Blalock works 35 hours a week but she doesn't qualify for benefits like health insurance. “For McDonald’s, there are no benefits, period,” Blalock says.

McDonald's did not respond to Fortune's request for comment, but benefits and wages do vary depending on whether a location is owned by corporate or a franchisee.

When Blalock needed cataract surgery last year, she had to rely on a Medicaid program and a local medical charity to pay for the procedure. She postponed having the operation done for years because of the cost, and as result, she's now dealing with partial blindness.

“Sometimes you’ve just got to send up a prayer up and just pray about it. But it's still stressful,” Blalock says.

Although Blalock has considered trying to find a new job, as a member of Raise Up (the Southern branch of the Fight for $15), she’s reluctant to move on without seeing a $15 minimum wage come to McDonald’s. About 89% of McDonald's workers make less than $15 per hour, according to the Shift Project's April 2022 brief.

“If I can, I am going to stick with this until the end,” Blalock says. “It’s my passion right now.”

Yet the stress and toil of working a low-wage job does weigh heavily—even if she tries to push it down. “I'm a happy person, and I like fun and music. I enjoy people,” Blalock says. “So they see this of me [and think] this is the way it is all the time. Trust me, it’s not.”

“You have to put up a front for people sometimes to not cry in front of them.”

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×