There is growing evidence that Americans are struggling to keep up with the crushing inflation.
Nearly three in four 71% of employees say the cost of living is out of the range of their salary and wages, according to a Bank of America-sponsored survey shared with CNN on Tuesday. That was up from 58% in February.
Half of the employees who participated in 401 k plans said they have taken action to deal with financial strain in the past six months, according to a survey taken in July.
21% of people are tapping emergency savings to pay bills, 21% are working extra hours, 20% are looking for a higher paying job and 6% are resorting to a 401 k hardship withdrawal, according to the survey.
62% of the workers are stressed about their finances, according to the Bank of America survey.
Inflation is the main factor that is contributing to the stress, said Lorna Sabbia, head of retirement and personal wealth solutions at Bank of America.
The findings paint a picture of a workforce that is under significant financial pressure despite evidence of a booming jobs market and resilient consumer spending.
The mood of consumers is darkened by the fact that stubbornly high inflation is eroding paychecks. While gasoline prices have decreased in recent months, prices for food, rent and utilities remain high.
Consumer prices climbed by 8.3% year-over-year in August, according to the Bureau of Labor Statistics. That is not far below the 40 year high of 9.1% set in June.
The labor market, for now at least, is booming. The unemployment rate fell to 3.5% in July, the lowest level since 1969. There is a strong hiring process and layoffs are relatively uncommon. The Federal Reserve is warning of job loss ahead as it attempts to combat high inflation with massive interest rate hikes.
The Bank of America survey found 44% of employees who are financially well off. That is the lowest level in five years and significantly less than February's level of 57%.
The deterioration was more severe among minorities. In February, 32% of Black employees said they feel financially well, down from 50% in February. One in three Hispanic employees said they feel financially well, down from 47% in February.
Gen Z and Millennials aged 18 to 44 saw a 15 percentage point decline, compared to 10 points for those who are 55 years old and above.
Many Americans are considering quitting their jobs despite this backdrop.
21% of employees thought about switching jobs, and 9% did, according to the Bank of America. The top reasons for quitting were compensation, burnout and work-life balance.
In the fall s midterm election, the economy is likely to be a key issue. According to a Washington Post ABC News poll released over the weekend, just one in four Americans say the economy is in good or excellent shape. Three in four Americans say the economy is either poor or not so good. The economy is affected by high energy prices.
The Americans have been dealing with sticker shock because of high natural gas and coal prices, along with high demand due to heat waves, which has led to increased utility bills this summer.
The average monthly payment for utilities was up 16.3% year-over-year in August, according to a separate Bank of America report.
Some families are struggling to pay due to the fact that utility bills have climbed so much. In a Bank of America survey, consumers found that 17% of households missed or made late payments on utilities. For those making less than $50,000, that figure goes up to 25%.
If utility prices remain high, these households could come under pressure to make cuts in their other spending in order to keep the lights on, according to Bank of America.