The economy looks a lot better than it did last year, but women are still being hit especially hard.
A new study by Varo Bank, Morning Consult and THRIVE Financial Empowerment Services says more than half of Americans are currently living paycheck-to-paycheck.
While this segment of the population has grown since the COVID pandemic and the high inflation of the past two years, the study shows women are significantly more likely than men to be living paycheck-to-paycheck.
According to the data, nearly 6 in 10 women are living paycheck to paycheck, compared to 4 in 10 men.
"The gap is still there. And we need to do more to close it," the study noted. "Among survey respondents, a full two-thirds (67%) of those considered 'financially fragile' were women." The study defines financially fragile as not being able to get $2,000 in 30 days if needed.
Analysts say women have historically been paid less than men for the same jobs, leaving them with less surplus money to invest in the stock market or put in savings for an economic downturn.
"Women, generally speaking, are making less than men (on average) as they tend to be employed in lower-paying occupations than men and still bear the bulk of household and child care responsibility, making them also more likely to be working part time or to have had gaps in their work experience which also affects pay," Marisa DiNatale, head labor economist at Moody's Analytics, told The Hill.
Of those living paycheck-to-paycheck, 35% report that financial
stress has had a negative impact on their physical health in the past six months and 40% say it has negatively impacted their mental health.
To get by, nearly half (48.2%) of respondents say they have sacrificed at least one basic need -- doctor's visits, necessary medications, mental health care, healthy food, or safe housing -- in the past six months due to the cost, while 28% have sacrificed at least two of these basic needs.
The greatest financial concerns for people living paycheck-to-paycheck are covering basic costs of living (34.5%), not enough savings (16%), and too much debt (14%).
The study pointed out that there was no meaningful difference in financial
fragility between political parties. People in all parties were inclined to cite the daily cost of living as their greatest financial concern.