Although inflation appeared to ease in July, 87% of people who participated in a WalletHub survey conducted ahead of the Labor Day holiday said they believe they need a raise to keep up with it.
According to WalletHub, its survey of more than 350 people is “nationally-representative” and “examines Americans’ Labor Day plans,” as well as “how people have been [by] impacted the current economic environment.”
Americans wanting higher pay is “unsurprising given the fact that inflation hit 40-year highs this year and has only started to cool down in recent months,” said Jill Gonzalez, WalletHub analyst.
“The Federal Reserve aims to rein in inflation through a series of rate hikes, but Americans have already experienced a huge hit to their wallets this year, and raises could help compensate for that,” she added.
Other survey answers may illuminate even more reasons why Americans believe they should be getting paid more. For example, 55% of survey participants said they have worked harder since the start of the COVID-19 pandemic began in spring of 2020. Survey results also found that 75% of Americans left vacation days unused in 2021, and 61% of works said they find it difficult to “unplug” from their jobs.
“The pandemic caused a period of extremely high unemployment, which has been resolved but replaced by extremely high inflation, so many Americans likely feel the need to make up for lost ground in their finances by working extra hours or even an extra job,” Gonzalez said. “Naturally, Americans who work harder will also appear to be more reliable and more valuable employees, which makes them less likely to be laid off and more likely to receive raises and promotions.”
Additionally, inflationary pressures are impacting their plans. As people plan for Labor Day, many (48%) are concerned about travel expenses. According to AAA, national average gas prices were near $4 per gallon Thursday, though they have fallen from a peak this summer.
Still, 44% of survey respondents said they are less likely to travel than last year due to gas prices. Another 26% said they are concerned about traffic and 12% said they are concerned about accidents.
Consumers may be wary of spending on gas, but 23% more people are planning to shop over Labor Day this year than last year, survey results indicated. Looking forward, 40% of people are concerned that monkeypox will have an effect on the economy as COVID-19 pandemic-related issues linger.
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