Americans' finances are in decline. The Federal Reserve's (Fed) annual home economics survey revealed a 15% increase in citizens reporting being worse off in 2022 (35%) than in 2021 (20%). The figure represents a record since the question was first asked in the 2014 survey.
Among the main reasons is that more adults experienced an increase in their expenses compared to their income. Inflation was "the most common challenge" faced by all respondents:
Forty percent of adults said their monthly household spending increased in 2022 compared to the previous year, while 33% said their monthly income increased.
2022 Report Economic Well B... by Verónica Silveri
The survey also showed a record low for the percentage of people reporting being better off financially since 2014. This figure was reduced to 19% in 2022, compared to 25% in 2021.
The survey was conducted between Oct. 21 and Nov. 1, 2022, and 11,775 people participated. With it, the Fed measures American households' economic well-being.
More people depend on credit, and fewer people work
The survey results also showed an increase in the number of people relying on credit card debt to cover their expenses. In addition, there was a 2% increase in people of "productive age" (25 to 54 years old) who were out of work, from 21% in 2019 to 23% in 2022.
Health limitations or disabilities, family obligations, and childcare were the most cited reasons for not working. On the other hand, only 6% of working-age adults said they did not work because they could not find work.
There were notable differences (10%) in employment rates by gender: 28% of women of productive age were not working, compared to 18% of men.
