Tags: income | workers | bills | pay

NYT: Fluctuating Income Puts Many US Workers in a Pickle

By    |   Thursday, 04 December 2014 02:52 PM

Many Americans, stuck in part-time work, are seeing their weekly paychecks go on a rollercoaster ride, making it difficult for them to pay their bills, let alone plan their spending.

"Household income became noticeably more volatile between the early 1970s and the late 2000s," according to a 2012 study by economists Daniel Sichel, Douglas Elmendorf and Karen Dynan.

And a recent Federal Reserve survey, based on 2013 data, indicated the trend might be worsening. More than 30 percent of Americans say their incomes have fluctuated sharply. And total of 42 percent of them blame it on an irregular work schedule, while 27 percent cite joblessness or seasonal work.

"Low pay is also unsteady as well," Jonathan Morduch, who oversees a study of family finances for U.S. Financial Diaries, told The New York Times. "This is a hidden inequality that often gets lost."

The newspaper cited the case of one worker who had to tap his 401(k_ account and take out a bank loan to pay the bills. "You think, 'How can you afford that?'" he said. "But because it's getting our bills paid, you do."

Meanwhile, technology apparently isn't helping.

"The increasing use of technology to replace human capital is a trend that will not reverse anytime soon and will continue to proliferate in areas where unskilled, repetitive labor can be automated," Lance Roberts, chief portfolio strategist for STA Wealth Management, wrote in a commentary.

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Many Americans, stuck in part-time work, are seeing their weekly paychecks go on a rollercoaster ride, making it difficult for them to pay their bills, let alone plan their spending.
income, workers, bills, pay
239
2014-52-04
Thursday, 04 December 2014 02:52 PM
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