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Most saw their income decline due to closures, layoffs, pay cuts or reduced hours, according to the report.
This speaks to the widespread financial impact left over from the pandemic, said Greg McBride, chief financial analyst at Bankrate.com. “Even when Americans are returning to work, many say their households are earning less than before Covid-19.”
Younger people were more likely to have their finances negatively affected by the pandemic.
More than half of Generation X households (40-55 years old) and 63% of Generation Z households (18-23 years old) and Millennials (24-39 years old) reported a negative impact on your general income. That compares to just 37% of Baby Boomers (ages 56-74).
The probability of a financial rebound decreases with income level, according to the study. Of the households earning $ 80,000 or more annually that said their income declined due to the pandemic, 30% returned to normal. That compares to just 9% of households making less than $ 30,000 a year.
As the pandemic continues, Americans are increasingly concerned.
Almost all households that have seen their income decline due to the pandemic, 95%, are worried about another blow in the coming months. And it’s not just those who have already suffered. Of the households that didn’t see any negative impact on their finances, 75% say they are worried about seeing one in the coming months.
“The vast majority of Americans are concerned about an impact on their household income in the coming months due to the pandemic,” McBride said. “This widespread concern and hesitancy to spend will affect the pace of economic recovery.”
