60% of Americans live paycheck to paycheck: What happens when unemployment-hits?
The Fed’s inflation-fighting campaign that’s been driven by job reports shows signs of slowing down. Yet – in the face of persistent inflation, companies are thinning out labor.
Unemployment crouched at 3.9% at the end of Q3 but the headlines instill panic.[1] The prospect of unemployment is more real and unsettling than ever. Losing a job is one of the most stressful events in a person’s life, categorized by the APA as both financial and psychological trauma.[2]
Unemployment is bad news for Americans – especially the 60% that live paycheck to paycheck.
About two-thirds of Americans live paycheck to paycheck, so when job cuts, borrowers face serious financial difficulty with no warning. Debt and unemployment do not bode well for peace of mind – or maintaining strong credit health.
While some unemployment situations may be voluntary (due to needing to take care of aging parents or young children), involuntary, unexpected unemployment creates a true income crisis for families.
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