AI resume builder Resume Now® today released its 2026 Financial Outlook Report, revealing deep pessimism about the financial future among U.S. employed adults. Based on 1,011 respondents, nearly half of working Americans (49%) say they do not believe their wages will ever catch up with the rising cost of living, with another 32% saying their wages won’t catch up for many years. Less than 1 in 5 (19%) think their wages will catch up to inflation in 2026.
“Workers are telling us something critical: they’re not just stretched thin, they’re losing hope,” said Keith Spencer, Career Expert at Resume Now. “When half the workforce believes their wages will never catch up to the cost of living, that’s more than financial stress. It’s a fundamental breakdown of confidence in the economy. People are postponing milestones, feeling underpaid, and bracing for another year of strain. These findings underline how urgently workers need stability, transparency, and meaningful wage growth.”
I had a chance to learn more in an interview with Keith Spencer, Resume Now’s career expert.
What leads to worker pessimism about wages and the cost of living?
At a time when 92% of workers are cutting back on their spending, even on essential items like groceries and healthcare, it’s understandable that nearly half of working Americans believe their wages will never catch up with the rising cost of living. While official data may show wages outpacing inflation, that data often reflects averages, not the uneven reality workers experience. Many wage gains have been modest, delayed, or absorbed by higher housing costs, insurance premiums, childcare, and debt payments, leaving little room for relief. When everyday expenses continue to rise faster than people feel their paychecks do, the result is near-constant financial anxiety. In that context, worker pessimism isn’t a mindset problem, it’s a rational response to persistent economic pressure.
What implications does this have for employers?
The financial anxiety many workers are experiencing has real implications for employers. When employees lose confidence that their wages will keep pace with the cost of living, it often shows up as disengagement, lower effort, and an increased likelihood of quietly searching for more stable or flexible roles. Over time, this can affect productivity, team morale, and retention, raising hiring and training costs in an already competitive labor market.
As a result, employers face growing pressure not just to demonstrate fair compensation, but to acknowledge and address the broader financial realities employees are navigating. Support doesn’t always have to mean across-the-board pay increases; transparency, flexibility, meaningful benefits, and clear growth pathways can all help rebuild trust. When workers feel financially stretched, even modest efforts to acknowledge and support their needs can have an outsized impact on morale, loyalty, and long-term retention.
How can workers push for more wage transparency and fair wages?
Workers can push for more wage transparency and fair pay by asking clearer questions, sharing information more openly, and using the leverage they have strategically. That includes requesting salary ranges early in the hiring process, asking how pay decisions are made, and grounding compensation conversations in documented contributions and market data. While individual workers can’t solve systemic wage issues on their own, normalizing pay discussions and consistently advocating for clearer compensation frameworks can help shift expectations and reduce the role of ambiguity over time.
Key Findings
- Half of American workers (49%) believe their wages will never catch up to the cost of living
- Nearly half (48%) have postponed a major life milestone,including buying a home, having children, or changing careers, due to rising costs.
- More than one-third (38%) expect financial stress to increase in 2026, and 39% overall expect no improvement.
- Pay transparency remains a major workplace issue: 77% of workers feel unclear about salary ranges, raises, or bonus structures at their own companies.
- If given a raise, most workers would use it for survival, not optional spending: 37% would save it, 32% would cover basic expenses, and 26% would pay down debt.
- A combined 69% feel underpaid, with only 2% believing they are overpaid.
When asked if they believed wages would ever fully catch up to the cost of living:
- 19%: yes, within the next year
- 32%: yes, but it will take many years
- 49%: no, not in my lifetime
Most Workers Feel Underpaid
A combined 69% of American workers feel undercompensated.
- 27% say their salary is much lower than it should be
- 42% say it is somewhat lower
- Only 2% feel overpaid
If Given a Raise, Most Would Use It for Survival, Not Luxury
How Americans would use a cost-of-living raise:
- 37% add to savings
- 32% cover everyday expenses
- 26% pay down debt
- 3% vacation
- 2% education or career development
Many Americans Are Delaying Major Life Milestones
- 48% have postponed a major life decision due to the cost of living pressures. Examples include buying a home, having children, going back to school, or changing jobs.
Financial Stress Is Expected to Get Worse
Overall, 77% expect financial stress to stay the same or increase. Workers’ expectations for 2026:
- 39%: stress will stay the same
- 25%: stress will increase somewhat
- 13%: stress will increase significantly
- Only 23% expect a decrease
Employer Pay Transparency Is Lacking
Many feel unclear on salary ranges, raises, and bonus structures.
- 23%: very transparent
- 43%: somewhat transparent
- 34%: not very or not at all transparent
To view the full 2026 Financial Outlook Report , please visit https://www.resume-now.com/
Methodology:
The findings provided were gathered through a survey of 1,011 U.S. adults on December 7, 2025. Participants answered a wide range of questions about income, financial stress, cost of living, wage trends, employer transparency, and future economic outlook. Question formats included multiple choice, scaled responses, and multi-select options.
About Resume Now
Resume Now is a powerful resource dedicated to helping job-seekers achieve their potential. Resume Now’s AI resume builder is a cutting-edge tool that makes creating a resume fast, easy, and painless. Resume Now has been dedicated to serving job seekers since 2005. Alongside its powerful AI resume builder and stylish ready-to-use templates, it also features free advice for job seekers at every career stage, guides for every step of the hiring process, and free resources for writing cover letters. Resume Now is committed to supporting job seekers and workers alike and has conducted numerous surveys related to the experience, trends, and culture of the workplace. These surveys have been featured in Business Insider, CNBC, Fast Company, Yahoo!, Forbes, and more. Keep up with Resume Now on LinkedIn, Facebook, X, and Pinterest.
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