A study found that the number of households with falling incomes is growing.
Bloomberg reported on Wednesday that the number of US people whose incomes are going down has gone through the roof in the past few weeks; this is a sign that the job market is weakening.
A study of the US job market by data intelligence company Morning Consult showed that the number of households whose incomes were going to go down went up from 10.7% in August to 11.8% last month, according to the news source. Families with high and middle incomes and people living in the West of the United States were the leading causes of the rise.
Twenty per cent of adults asked who make $100,000 a year or more said they thought their incomes would go down in the next four weeks.
The percentage of workers who said they worked more than 35 hours dropped to 46.7%, a 12% drop from September 2022. The decline was the biggest since the spring of 2021, showing that business activity in the US was slowing down, according to the poll. Respondents most often gave the reason as “soft business conditions.”
2022 US family income fell the most in twelve years when adjusted for inflation; this shows how high living costs and the end of programmes from the pandemic have hurt people.
Last month, The US Census about income and poverty showed how badly the COVID-19 crisis and the government’s reaction to it hurt the country’s economy. After the pandemic-era child tax credits ran out last year, poor children more than doubled; this happened during the worst inflation in 40 years, making it harder for families to spend money.