London Daily

Focus on the big picture.
Tuesday, Dec 16, 2025

Low-wage employees report high levels of financial stress

Low-wage employees report high levels of financial stress

Financial stress is real for Rita Blalock, 56. In fact, it’s nearly constant companion these days.

Like many of America’s hourly workers, the $12 per hour she earns working at McDonald’s in Raleigh, N.C. doesn’t stretch far enough. “It’s a struggle to keep your head above water. It’s stressful, too,” Blalock tells Fortune.

Blalock has spent nearly a decade at the fast-food chain working nearly every station, she says—except in maintenance or as a cashier. “Some of [the customers] can be nasty. That’s probably why I’ve kept my job so long because I don’t interact with them. I’d rather stay in the back where it’s a little bit safer.”


But despite her time at the chain, Blalock says she’s struggled to keep her finances on track amid rising prices, particularly now with sky-high inflation. To help keep her expenses low, Blalock relies on the free meal she gets during her McDonald’s shift and takes the bus to and from work.

Public transportation presents its own challenges. “The buses here comes when they want to,” Blalock says, adding that sometimes that means she’s late to work. While that wouldn’t be an issue for most salaried employees, even seconds can matter for hourly workers. “That’s pressure. You’ve got to get there within the grace period, or you’re going to hear some flak. That’s something that you don’t want to start your day out with,” she says.

“A lot of people are just stressed out right now and…just don’t know what to do,” Blalock says. “So you go to work and you try to make everything happen, because that’s your only paycheck.”

Living on the edge financially not only affects workers like Blalock, but employers too, according to the Financial Health of Workers in Low-Wage Jobs Report released Thursday by the Financial Health Network. About 21% of workers in low-wage jobs report that their high levels of financial stress negatively affects their productivity and job performance.

Currently, about 44% of the entire U.S. workforce, about 53 million Americans between the ages of 18 and 64, falls into the category of low-wage workers, according to the Financial Health Network’s report. The report categorizes low-income jobs as those that pay less than $17 per hour, or up to $35,360 in an annual salary.

Unsurprisingly, low-wage workers like Blalock are twice as likely as the average employee to identify as financially vulnerable—grappling with most or all aspects of their finances. Most low-wage workers routinely struggle to save, acquire adequate insurance coverage, and pay for essentials like food and rent. Only about 13% of workers in low-wage jobs say they are financially healthy.

60% of workers in low-wage jobs cannot cover three months of expenses with short-term savings

At your current level of spending, how long could you and your household afford to cover expenses, if you had to live only off the money you have readily available, without withdrawing money from retirement accounts or borrowing from friends/family or credit card?


“Workers in low-wage jobs are constantly under financial stress that takes a toll on many aspects of their lives,” Beth Brockland, vice president of workplace solutions at the Financial Health Network, said in a statement.

The burden of struggling to manage their money can extend to their work day. Low-wage workers spend an average of about 1.3 hours a week dealing with their finances at work, including activities like contacting creditors, as well as managing their bank accounts. That adds up to about 66 hours of lost productivity annually from just finance-related issues.

“Employers have a lot to gain by investing in the financial health of their workers, not only to improve workers’ well-being but to foster more engaged and productive employees,” Brockland said.

Higher pay is only part of the equation. Although it’s legal to pay workers just $7.25 in more than 20 states—the U.S. hasn’t raised the federal minimum wage in 13 years—only about 1.5% of all hourly workers make that little, according to a 2021 report from the Bureau of Labor Statistics.

Blalock has worked for McDonad’s in North Carolina for nearly 10 years. Most of that time, her pay was about $8 an hour. But over the last two years, she's received a series of raises that bumped her up to $12 per hour. (North Carolina’s hourly minimum wage is still $7.25.)

Yet while wages have increased overall for workers across the U.S. in recent months, benefits like health insurance and retirement plans are still scarce. Even a stable work schedule can be a huge help to hourly workers. As of fall 2021, nearly two-thirds of workers still get less than two weeks’ notice about their upcoming work schedule, according to the Shift Project. And yet research shows unpredictable work schedules can lead to income volatility that makes it harder to budget for rent, food, and utility payments.

A third of the low-wage workers surveyed by the Financial Health Network report their employer doesn’t offer any employer-sponsored retirement plan. Another 20% are unsure if their company offers retirement options.

When it comes to health insurance, just a third of low-wage workers get coverage from their employer. Among those who aren’t utilizing employer-based health insurance, more than half say it’s because they’re not eligible. And nearly half of those who are eligible say they can’t take advantage because the deductibles and copays are too expensive.

Investing in the financial health of their workers could be a win-win for employers. Not only could it boost productivity and performance, but it also helps with retention. Workers who have these types of financial benefits are much more likely to report wanting to stay at their job for at least the next year, according to the survey.

But it could be have an even bigger impact on hourly workers, especially when it comes to access to health insurance. Blalock works 35 hours a week but she doesn't qualify for benefits like health insurance. “For McDonald’s, there are no benefits, period,” Blalock says.

McDonald's did not respond to Fortune's request for comment, but benefits and wages do vary depending on whether a location is owned by corporate or a franchisee.

When Blalock needed cataract surgery last year, she had to rely on a Medicaid program and a local medical charity to pay for the procedure. She postponed having the operation done for years because of the cost, and as result, she's now dealing with partial blindness.

“Sometimes you’ve just got to send up a prayer up and just pray about it. But it's still stressful,” Blalock says.

Although Blalock has considered trying to find a new job, as a member of Raise Up (the Southern branch of the Fight for $15), she’s reluctant to move on without seeing a $15 minimum wage come to McDonald’s. About 89% of McDonald's workers make less than $15 per hour, according to the Shift Project's April 2022 brief.

“If I can, I am going to stick with this until the end,” Blalock says. “It’s my passion right now.”

Yet the stress and toil of working a low-wage job does weigh heavily—even if she tries to push it down. “I'm a happy person, and I like fun and music. I enjoy people,” Blalock says. “So they see this of me [and think] this is the way it is all the time. Trust me, it’s not.”

“You have to put up a front for people sometimes to not cry in front of them.”

Newsletter

Related Articles

0:00
0:00
Close
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
×