Beautiful Virgin Islands

Monday, May 29, 2023

Low-wage employees report high levels of financial stress

Low-wage employees report high levels of financial stress

Financial stress is real for Rita Blalock, 56. In fact, it’s nearly constant companion these days.

Like many of America’s hourly workers, the $12 per hour she earns working at McDonald’s in Raleigh, N.C. doesn’t stretch far enough. “It’s a struggle to keep your head above water. It’s stressful, too,” Blalock tells Fortune.

Blalock has spent nearly a decade at the fast-food chain working nearly every station, she says—except in maintenance or as a cashier. “Some of [the customers] can be nasty. That’s probably why I’ve kept my job so long because I don’t interact with them. I’d rather stay in the back where it’s a little bit safer.”


But despite her time at the chain, Blalock says she’s struggled to keep her finances on track amid rising prices, particularly now with sky-high inflation. To help keep her expenses low, Blalock relies on the free meal she gets during her McDonald’s shift and takes the bus to and from work.

Public transportation presents its own challenges. “The buses here comes when they want to,” Blalock says, adding that sometimes that means she’s late to work. While that wouldn’t be an issue for most salaried employees, even seconds can matter for hourly workers. “That’s pressure. You’ve got to get there within the grace period, or you’re going to hear some flak. That’s something that you don’t want to start your day out with,” she says.

“A lot of people are just stressed out right now and…just don’t know what to do,” Blalock says. “So you go to work and you try to make everything happen, because that’s your only paycheck.”

Living on the edge financially not only affects workers like Blalock, but employers too, according to the Financial Health of Workers in Low-Wage Jobs Report released Thursday by the Financial Health Network. About 21% of workers in low-wage jobs report that their high levels of financial stress negatively affects their productivity and job performance.

Currently, about 44% of the entire U.S. workforce, about 53 million Americans between the ages of 18 and 64, falls into the category of low-wage workers, according to the Financial Health Network’s report. The report categorizes low-income jobs as those that pay less than $17 per hour, or up to $35,360 in an annual salary.

Unsurprisingly, low-wage workers like Blalock are twice as likely as the average employee to identify as financially vulnerable—grappling with most or all aspects of their finances. Most low-wage workers routinely struggle to save, acquire adequate insurance coverage, and pay for essentials like food and rent. Only about 13% of workers in low-wage jobs say they are financially healthy.

60% of workers in low-wage jobs cannot cover three months of expenses with short-term savings

At your current level of spending, how long could you and your household afford to cover expenses, if you had to live only off the money you have readily available, without withdrawing money from retirement accounts or borrowing from friends/family or credit card?


“Workers in low-wage jobs are constantly under financial stress that takes a toll on many aspects of their lives,” Beth Brockland, vice president of workplace solutions at the Financial Health Network, said in a statement.

The burden of struggling to manage their money can extend to their work day. Low-wage workers spend an average of about 1.3 hours a week dealing with their finances at work, including activities like contacting creditors, as well as managing their bank accounts. That adds up to about 66 hours of lost productivity annually from just finance-related issues.

“Employers have a lot to gain by investing in the financial health of their workers, not only to improve workers’ well-being but to foster more engaged and productive employees,” Brockland said.

Higher pay is only part of the equation. Although it’s legal to pay workers just $7.25 in more than 20 states—the U.S. hasn’t raised the federal minimum wage in 13 years—only about 1.5% of all hourly workers make that little, according to a 2021 report from the Bureau of Labor Statistics.

Blalock has worked for McDonad’s in North Carolina for nearly 10 years. Most of that time, her pay was about $8 an hour. But over the last two years, she's received a series of raises that bumped her up to $12 per hour. (North Carolina’s hourly minimum wage is still $7.25.)

Yet while wages have increased overall for workers across the U.S. in recent months, benefits like health insurance and retirement plans are still scarce. Even a stable work schedule can be a huge help to hourly workers. As of fall 2021, nearly two-thirds of workers still get less than two weeks’ notice about their upcoming work schedule, according to the Shift Project. And yet research shows unpredictable work schedules can lead to income volatility that makes it harder to budget for rent, food, and utility payments.

A third of the low-wage workers surveyed by the Financial Health Network report their employer doesn’t offer any employer-sponsored retirement plan. Another 20% are unsure if their company offers retirement options.

When it comes to health insurance, just a third of low-wage workers get coverage from their employer. Among those who aren’t utilizing employer-based health insurance, more than half say it’s because they’re not eligible. And nearly half of those who are eligible say they can’t take advantage because the deductibles and copays are too expensive.

Investing in the financial health of their workers could be a win-win for employers. Not only could it boost productivity and performance, but it also helps with retention. Workers who have these types of financial benefits are much more likely to report wanting to stay at their job for at least the next year, according to the survey.

But it could be have an even bigger impact on hourly workers, especially when it comes to access to health insurance. Blalock works 35 hours a week but she doesn't qualify for benefits like health insurance. “For McDonald’s, there are no benefits, period,” Blalock says.

McDonald's did not respond to Fortune's request for comment, but benefits and wages do vary depending on whether a location is owned by corporate or a franchisee.

When Blalock needed cataract surgery last year, she had to rely on a Medicaid program and a local medical charity to pay for the procedure. She postponed having the operation done for years because of the cost, and as result, she's now dealing with partial blindness.

“Sometimes you’ve just got to send up a prayer up and just pray about it. But it's still stressful,” Blalock says.

Although Blalock has considered trying to find a new job, as a member of Raise Up (the Southern branch of the Fight for $15), she’s reluctant to move on without seeing a $15 minimum wage come to McDonald’s. About 89% of McDonald's workers make less than $15 per hour, according to the Shift Project's April 2022 brief.

“If I can, I am going to stick with this until the end,” Blalock says. “It’s my passion right now.”

Yet the stress and toil of working a low-wage job does weigh heavily—even if she tries to push it down. “I'm a happy person, and I like fun and music. I enjoy people,” Blalock says. “So they see this of me [and think] this is the way it is all the time. Trust me, it’s not.”

“You have to put up a front for people sometimes to not cry in front of them.”

Newsletter

Related Articles

Beautiful Virgin Islands
Close
0:00
0:00
If you donated to BLM, you got played
I have a dream, MLK inspiring speech
Pfizer, the EU, and disappearing ink - Smoke, Mirrors, and the Billion-Dose Pfizer Vaccine Deal: EU's 'Open Secret
Aretha Franklin, Marvis Staples - Oh Happy Day
Actor Tom Hanks told Harvard University graduates to be superheroes in their defense of truth and American ideals, and to resist those who twist the truth for their own gain
BVI Freedom Song
The Sussexes' Royal Rebound: Could Harry and Meghan Markle Return to the UK?
Billy Preston - You Can't Beat God Giving (Live)
A provocative study suggests: Left-Wing Extremism and its Unsettling Connection to Psychopathy and Narcissism
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
France Arrests 10 on Suspicion of Failing to Respond in Time to Migrant Drowning
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
Neuralink Receives FDA Approval for First-in-Human Clinical Study
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Is Saudi Arabia the holiest place in the world? Ancient Hebrew Inscriptions from "The Mount Sinai Stand" Discovered in Saudi Arabia
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Ukrainian Intelligence Official Admits to Assassination Attempts on Putin
Hello Dolly
WATCH THIS: democracy in Russia is so bad!
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
Ed Davey: It is possible for a woman to have a penis
Bob Marley - Get Up Stand Up
Bernard Arnault Loses $11.2 Billion in One Day as Investors Fear Slowdown in US Growth Will Reduce Demand for Luxury Products
Yes He Can
Russian’s Wagner Group leader: “I am not a chef, I am a butcher. Russia is in danger of a revolution like in 1917.”
What A Friend We Have In Jesus
TikTok Sues Montana Over Law Banning the App
Unforgettable
Ron DeSantis Jumps Into 2024 Presidential Race, Setting Up Showdown With Trump
Touch The Hem Of His Garment
Steve Jobs introducing Apple's iPhone, exactly 16 years ago.
The Lord's Prayer
Banking Behemoth vs Ex-Boss: The PMorgan-Epstein Entanglement
THE GOD MOVEMENT...BEAUTIFUL BVI
China overtakes Japan as world's top car exporter
Siyahamba
Last Walmart in North Portland Closing Down
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
Banking Behemoth vs Ex-Boss: The PMorgan-Epstein Entanglement
Ramblin' Rose
Florida's DeSantis seeks to disqualify judge in Disney case
Protoje - Who Knows ft. Chronixx
Talks between US House Republicans and President Biden's Democratic administration on raising the federal government's $31.4tn debt ceiling have paused
Pressure - Virgin Islands Nice
Biden Administration Eyeing High-Profile Visits to China: The Biden Administration is heating things up by looking into setting up a series of top-level visits to Beijing by top officials in the coming months
Phil Wickham - House Of The Lord
New evidence in special counsel probe may undercut Trump’s claim documents he took were automatically declassified
My God Is Real (Yes, God Is Real)
A French court of appeals confirmed former President Nicolas Sarkozy's three-year jail term for corruption and influence peddling
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
Debt Ceiling Crises Have Unleashed Political Chaos
Louis Armstrong - When The Saints Go Marching In
Weibao Wang, a former software engineer at Apple, was charged with stealing trade secrets related to autonomous systems, including self-driving cars
Kanye West Sunday Service - hallelujah, salvation, and glory
Mobile phone giant Vodafone to cut 11,000 jobs globally over three years as new boss says its performance not good enough
Jonathan Nelson - I Believe (Island Medley
Elon Musk compares George Soros to Magneto, the supervillain from the Marvel Comics series.
From The Virgin Islands Sqad Up
Warren Buffett Sells TSMC Shares Over Concerns About Taiwan's Stability
Common, John Legend - Glory
New Study Finds That Secondary Bacterial Pneumonia Is a Major Cause of Death in COVID-19 Patients Who Require Ventilator Assistance
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
The Prime Minister of St. Vincent and the Grenadines calls the British monarchy "an absurdity" he wants to remove in his lifetime
I have a dream, MLK inspiring speech
Remarkable video from our Fox drone team
Aretha Franklin, Marvis Staples - Oh Happy Day
The official tapes of Trump's deposition in the E. Jean Carroll battery (rape) and defamation case have been released.
BVI Freedom Song
Here is the full video that the media are purposely not sharing
Billy Preston - You Can't Beat God Giving (Live)
King Charles III being crowned.
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
New York procedures cover up cold blooded first degree murder of black man by white man
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
Video: Ukraine MP Punches Russian Representative At Global Meet
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
El Paso mayor has declared a state of emergency
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Russia accused Ukraine of attacking the Kremlin with drones in an attempt to kill Putin
Hello Dolly
Ahead of King Charles’ coronation, British guards rehearse in the middle of the night in London
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
Dutch court orders man who fathered 550 kids to stop donating sperm
Bob Marley - Get Up Stand Up
Kim Kardashian Lookalike Christina Ashten Dies Of Cardiac Arrest, Hours After Plastic Surgery
Yes He Can
Samsung has banned employees from using generative AI services such as ChatGPT
What A Friend We Have In Jesus
'Godfather Of AI' Geoffrey Hinton Quits Google To Warn Of The Tech's Dangers
Unforgettable
A Real woman
Touch The Hem Of His Garment
×