New Resume Now report reveals severe financial strain as wages fall behind and households drain savings heading into 2026
GUAYNABO, Puerto Rico, Jan. 7, 2026 /PRNewswire/ — A new national survey from AI resume builder Resume Now® of 1,011 employed workers reveals that American households are experiencing severe and worsening financial pressure as wages fail to keep pace with rising costs. According to the 2026 Cost-of-Living Crunch Report, just 12% of workers say their pay has kept up with inflation, and only 17% report they can comfortably cover essentials and save. Nearly everyone (92%) has cut back spending in 2025, including essentials such as groceries and healthcare, while 49% have dipped into savings just to get by.
“America is in a cost-of-living crisis, and workers know it,” said Keith Spencer, career expert at Resume Now. “Wages simply aren’t keeping pace. People are cutting groceries, skipping healthcare, delaying major life decisions, and turning to outside help at record rates. These are survival strategies, not spending choices.”
Key Findings
Paychecks are falling behind: Only 12% of workers say their wages have kept pace with inflation.
Just 17% of Americans feel financially secure enough to cover essentials and save.
Affordability is eroding fast: Nearly 4 in 10 say their ability to afford basics worsened this year; another 35% saw no improvement at all.
Essentials, not luxuries, are driving stress: 65% cite the cost of everyday necessities as their biggest strain.
92% cut back spending, even on essential items.
Households are draining their safety nets: 49% dipped into savings and 24% took on debt — clear signs of widespread financial distress.
Americans are turning to outside help at rising rates: 46% rely on more family support, government aid, or debt than last year; only 13% rely on less.
Most households lack a meaningful financial buffer: 60% say they could cover three months or less of expenses if they lost their job.
Most Americans Are Struggling to Afford Basic Living ExpensesSurvey data indicates a widespread affordability strain:
9% often cannot afford basic living expenses
15% can afford essentials but struggle
27% can cover essentials but rarely have money left
31% can cover essentials and some extras
Only 17% can comfortably cover essentials and save for the future
Affordability Has Worsened for ManyCompared to last year, three-quarters say that affordability has stayed the same or worsened:
35% say affordability stayed the same
39% say their ability to afford essentials has worsened
26% have seen improvement
Everyday Essentials Are the #1 Financial StressorJust 12% say their pay has kept pace with rising costs. The top contributors to resulting financial stress are:
65%: prices for everyday essentials
43%: housing costs
38%: retirement savings
37%: healthcare costs
37%: lack of emergency savings
Americans Are Cutting Back on Everything — Even EssentialsPercent who reduced spending due to rising costs:
69% dining out
55% vacations
40% groceries
35% housing upgrades or moves
29% retirement contributions
21% healthcare visits or prescriptions
Only 8% cut nothing
Half of Americans Have Dipped Into Savings to SurviveCoping strategies:
49% dipped into savings
42% delayed major purchases or milestones
28% picked up additional income
24% took on debt
22% borrowed from friends/family
11% relied on government or community aid
Americans Are Turning to Outside HelpMany are increasingly relying on alternative support:
46% rely on more outside help than last year
41% rely the same amount
Only 13% rely less
Most Households Have Very Little Financial CushionIf they lost their job they would be able to cover expenses for:
24%: less than a month
36%: 1–3 months
18%: 4–6 months
22%: more than 6 months
To view the full 2026 Cost-of-Living Crunch Report, please visit https://www.resume-now.com/job-resources/careers/cost-of-living-crunch-report or contact Alexa Kalechofsky at [email protected].
Methodology:The findings provided were gathered through a survey of 1,011 U.S. adults on December 7, 2025. Participants answered a wide range of questions about income, financial stress, cost of living, wage trends, employer transparency, and future economic outlook. Question formats included multiple choice, scaled responses, and multi-select options.
About Resume Now
Resume Now is a powerful resource dedicated to helping job-seekers achieve their potential. Resume Now’s AI resume builder is a cutting-edge tool that makes creating a resume fast, easy, and painless. Resume Now has been dedicated to serving job seekers since 2005. Alongside its powerful AI resume builder and stylish ready-to-use templates, it also features free advice for job seekers at every career stage, guides for every step of the hiring process, and free resources for writing cover letters. Resume Now is committed to supporting job seekers and workers alike and has conducted numerous surveys related to the experience, trends, and culture of the workplace. These surveys have been featured in Business Insider, CNBC, Fast Company, Yahoo!, Forbes, and more. Keep up with Resume Now on LinkedIn, Facebook, X, and Pinterest.
SOURCE Resume Now
