Government shutdown exposes workers' financial fragility

• Key Insight: Learn how employer-led financial-wellness programs can mitigate shutdown-driven instability.
• What's at Stake: Widespread payroll interruptions could worsen retention, productivity, and regulatory scrutiny.
• Expert Quote: Work is more than pay; it's workforce and economic stability, said Emily M. Dickens, SHRM.
• Source: Bullets generated by AI with editorial review

For thousands of federal employees, the latest government shutdown meant more than political gridlock — it meant missed paychecks, mounting bills and a sobering reminder of how close many workers are to financial crisis.

President Trump signed the bill ending the longest shutdown in history on Wednesday night, resuming operations that had been stalled for 43 days. The shutdown served as a stark reminder of the growing vulnerability within the workforce, as Americans struggled to get by without a secure financial cushion or safety net. 

In fact, even among those with stable jobs, many still lack the financial means to go through a crisis of any kind. The resulting stress can spill over into productivity, morale and retention. According to analysis by Remitly, more than one in four Americans have no emergency savings at all, while nearly a third say their current savings wouldn't cover three months of essential expenses. The average emergency fund stands at roughly $16,800, but nearly 40% of people would struggle to cover an unexpected $400 cost. The financial picture is especially fragile for hourly employees, with one in eight reporting less than $500 in reserves.

Read more: Employees feel bleak about their financial futures, despite robust benefits

As employers and employees return to work, benefit managers can continue to invest in financial well-being programs to buffer workers against future uncertainties. Expanding programs that encourage savings, provide access to financial education, and allow for more flexible pay arrangements can all make a meaningful difference. Additionally, robust emergency savings programs, matching contributions, and integrating financial wellness tools into existing benefits are all impactful actions.

As operations return to normal, benefit managers have a chance to turn crisis into progress — helping workers rebuild confidence, reduce stress and prepare for whatever challenges come next. By doing so, they can strengthen not only individual households but the resilience of the workforce as a whole.

"The shutdown underscored a fundamental truth: Work is more than a paycheck," said Emily M. Dickens, SHRM Chief Administrative Officer, in a statement. "It is the foundation of thriving families, healthy communities and a strong economy. Government must function as a responsible and reliable partner to the larger world of work. The end of the shutdown should mark a broader recognition that the American workforce and economy must be prepared for rapid and continuous change." 

Here's how the shutdown disrupted work for millions of employees, and how benefit managers can begin to rebuild worker's financial confidence: 

• How leaders can support employees through the government shutdown
• Healthcare workers are feeling the strain of the government shutdown
• With SNAP benefits at risk, Canary helps employers provide support
• Financial wellness benefits that help — and hurt — employees 
• The positive impacts of employee financial wellness