Rising costs turn financial strain into a way of life for workers

• Key Insight: Learn how persistent inflation is reshaping employee benefits demand and workplace incentives.
• What's at Stake: Rising household strain could increase turnover, reduce productivity, and raise healthcare costs.
• Supporting Data: Over 90% of workers report cutting spending; nearly 50% tapped savings or debt.
• Source: Bullets generated by AI with editorial review

Financial strain is no longer a short-term challenge for many American workers but a lasting condition that is reshaping how people spend, save and think about their benefits, according to a new report.
More than nine in 10 U.S. workers say rising prices have forced them to cut back spending, often on basic necessities such as groceries, healthcare and prescriptions, according to Resume Now's Cost-of-Living Crunch Report. The findings suggest that for many households,  wages are no longer enough to provide a sense of financial stability.

"What we're seeing is that this pressure isn't temporary anymore," said Keith Spencer, a certified professional resume writer. "For a large share of the workforce, financial stress has become something they're constantly managing, not something they expect to pass."

The report highlights how deeply inflation is affecting household budgets. While official data shows wages rising faster than prices overall, Spencer said those averages obscure wide variation across industries.

"On paper, wages may look like they're keeping up," Spencer said. "But in reality, pay increases aren't happening evenly, and plenty of workers aren't seeing their earnings stretch far enough to keep up with everyday costs."

Read more: 1 in 3 employees is tapping their retirement savings

Those financial tradeoffs can have consequences that extend beyond personal budgets. Spencer said cutting back on food or delaying medical care can take a toll on workers' health and emotional well-being, with potential spillover effects in the workplace.

"When people are skipping prescriptions or stretching their grocery budget, that stress doesn't just disappear when they clock in," he said. "It contributes to burnout, disengagement and lower overall well-being at work."

The report also found that many workers are dipping into savings or taking on debt to manage rising expenses. Nearly half of respondents said they have relied on savings, while others reported using credit cards or loans to cover basic needs.

What benefit leaders can do

These financial pressures are influencing what employees expect from their employers, particularly when it comes to benefits. Spencer said workers are increasingly focused on offerings that directly reduce their financial burden rather than traditional, one-size-fits-all packages.

Read more: Leaders confront climbing healthcare costs

"Employees are prioritizing benefits that help them save money in meaningful ways," Spencer said. "That could mean student loan assistance for younger workers, help with child care costs for parents or more affordable health coverage for nearly everyone."

Despite ongoing stress, the report suggests job hopping has slowed in some sectors as workers place a higher value on stability. Spencer said the effect on retention depends heavily on job security and industry conditions.

"In a lot of cases, people are staying put because security feels more important than ever," he said. "But in roles or industries that feel less stable, workers may be more motivated to look elsewhere for something they perceive as safer."

For employers, Spencer said the findings highlight the importance of recognizing how financial stress shapes employee performance and engagement. He emphasizes that leadership teams should consider those pressures when setting expectations and evaluating workplace offerings and policies.

"Financial stress doesn't stop at the office door," Spencer said. "Employers who understand that — and respond with livable wages and thoughtful support — are going to be in a better position to keep their workforce engaged."

Not all solutions require major new spending, he added. Flexible schedules, remote or hybrid work arrangements and greater transparency around pay can help reduce employee expenses while also improving morale.

"Those kinds of policies can offer real financial relief without significant cost to the employer," Spencer said. "They can make a noticeable difference in employees' day-to-day lives."

As the cost of living continues to outpace wage growth for many households, Spencer said employers who adapt to changing employee needs will be better equipped to retain talent.

"Supporting workers through this moment isn't just good for employees," he said. "It's also a smart long-term move for organizations."