www.foxbusiness.com
A Bank of America Institute report reveals that nearly 24% of U.S. households are living paycheck to paycheck in 2025, spending over 95% of their income on necessities. While the growth rate has slowed compared to last year, lower-income households are disproportionately affected due to inflation outpacing wage growth. The share of lower-income households living paycheck to paycheck has risen to 29%, while it remains stable for middle- and higher-income earners. Economist Joe Wadford highlights the widening gap between wage growth for higher and lower-income earners, suggesting this “K-shaped economy” will likely persist if labor market disparities continue.
