The number of US adults with declining incomes has soared in recent weeks in a sign of a weakening labor market, Bloomberg reported on Wednesday.
The share of households facing a drop in their incomes rose from 10.7% in August to 11.8% last month, the outlet said, citing a survey of the US labor market by data intelligence company Morning Consult. The increase was mainly driven by high- and middle-income families and the West region of the United States.
About 20% of adults polled, who earn $100,000 or more annually, reported that they expected their incomes to drop in the next four weeks.
The share of employees who reported working over 35 hours fell to 46.7%, representing a 12% drop from September 2022. The decline marked the lowest level since the spring of 2021, signaling a slowdown in US business activity, the survey revealed. The most cited reason by respondents was soft business conditions.
This comes as US inflation-adjusted household income fell by the most in twelve years in 2022, highlighting the toll of a higher cost of living and the expiration of pandemic-era programs.
The income and poverty data released by the US Census last month showed how deeply the country’s economic conditions were affected by the Covid-19 crisis and the government’s response to it. The measure of child poverty more than doubled following the expiry of pandemic-era child tax credits last year amid the worst inflation in 40 years, which has undermined household spending power.
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