Labor Day is approaching and a majority of Americans feel like their hard work doesn’t mean much.
According to a new survey from the personal finance company WalletHub, 74% of people think inflation is erasing their hard work. And nearly two in three Americans say inflation is affecting their Labor Day plans.
In June 2022, inflation reached a peak of 8.5% — its highest rate since 1982. That year, the average rate of inflation, as measured by the Consumer Price Index, was 8%. Since then, it’s been on a downward trend, averaging 4.1% in 2023.
But even though inflation is lowering from its peak, that doesn’t mean its effects have disappeared. In the last four years, food prices have risen 22% alone in the US.
Some positive news, according to WalletHub, is that 67% of Americans say they are doing better financially than they were last Labor Day. But that exact same amount of people also feel like they’re working harder this year than last year.
Still, ninety-three percent of people surveyed want a raise to keep up with inflation.
WalletHub reports that one in three people report overspending on Labor Day sales, which might be in part because two-thirds reported being excited about good deals for the long weekend.
Cathy Carey, a professor at the University of Southern Indiana, suggested inflation-weary Americans should go on a “staycation” for Labor Day.
“Hosting backyard barbecues is a fun and cost-effective way to celebrate, although prices for beef and other meats, which are already at historical highs, tend to increase around major holidays due to higher demand,” Carey told WalletHub.
Additional reporting by Rocio Fabbro.
