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Younger Workers See the Greatest Slowdown in Income Growth, Report Finds

Meanwhile, overall real income growth for those aged 25 to 54 hit the lowest levels in nearly a decade, JPMorganChase Institute research showed. 

The challenges facing younger workers “carry implications beyond concern for this potentially vulnerable group: they can provide a signal for the state of the overall labor market,” the report said. 

“While private sector layoffs remain low, the labor market is producing fewer new job matches. This can disproportionately affect younger people that rely on a dynamic labor market to climb the career ladder, explaining their slower pace of gains relative to historical trends,” per the report. 

A slowdown in income gains compounds other challenges facing younger workers, such as rising housing costs, the research found. 

“Without stronger income gains, they may need to wait even longer for their budgets to catch up to their financial goals,” JPMorganChase Institute said. 

Workers’ financial struggles were also recorded in Bank of America’s 2025 Workplace Benefits Report, released last month. Driven partially by a higher cost of living and inflation, double the number of workers are turning to their employers for help with their immediate financial needs, such as emergency savings, reducing debt and general financial wellness, per the report, which was conducted in partnership with Bank of America Institute.

At the same time, U.S. wage growth is expected to be flat next year, according to recent data from compensation vendor Payscale. Salary budget increases are likely to remain relatively unchanged in 2026, at 3.5%, down just 0.1% from 2025.

hrdive.com

However, 39% said taking on extra work has or will likely hurt their productivity at their full-time job.

Overview

• More than a third of full-time workers are already earning extra income to cover holiday-related expenses, and another 29% intend to do so, according to the results of a ResumeTemplates.com survey of 1,000 full-time workers, released Tuesday.
• Nearly half of those looking to boost their income said they were working more hours for their employer, while others turned to delivery services, seasonal retail jobs, ride-sharing and freelancing. Some also reported supplementing their income through social media, pet sitting and babysitting.
• However, 39% of those surveyed said taking on extra work has or will likely hurt their productivity at their full-time job. However, 39% said taking on extra work has or will likely hurt their productivity at their full-time job.

“It’s not unusual for people to feel financial pressure during the holidays, but this year the stress seems even higher,” Julia Toothacre, chief career strategist at ResumeTemplates.com, said in a statement. “The deeper issue is that full-time employment no longer guarantees financial stability. Wages aren’t keeping pace with costs, and many people are being forced to find extra income just to maintain a basic standard of living.”

Toothacre warned that employees taking on more work need to monitor their energy and mental health — or else they might exacerbate existing burnout issues. 

Most workers are using their side gigs as insurance policies for financial stability, according to a July Glassdoor report. In a survey of more than 800 Glassdoor Community members, 67% said their main driver for having a side hustle was to boost income. Another Glassdoor Community poll found that 27% of respondents said they have a side gig, namely to make extra money and have a backup plan as a safety net. 

The CEO of TalenTrust, a recruiting and human capital consulting firm, previously told HR Dive that workers often look for second jobs when they can’t financially support their families.

“If the employers are paying a fair and reasonable compensation package, there shouldn’t be any issues. When they’re not, that’s when it opens up the door to look for other opportunities,” she said.

hrdive.com

Employees Plan to Spend More Time on Enrollment This Year

As concerns over finances grow, employees are planning to spend more time on their benefits decisions this open enrollment.

Nearly 8 in 10 U.S. employees (77%) “strongly agree” or “somewhat agree” that they plan to spend more time reviewing their benefit elections during annual enrollment to maximize their benefit dollars due to the current state of the economy, according to new data from Voya Financial. That’s up significantly from 69% who said the same last year. The news highlights the growing fiscal concerns employees have and should be an important focal point for employers as open enrollment heats up.

“A big part of [the reason employees plan to spend more time on enrollment] is due to heightened economic uncertainty,” said 

Christin Kuretich, vice president of supplemental products at Voya in New York City. “Concerns about financial stability have become more pronounced,” she said, adding that Voya research found that 63% of U.S. employees said financial worries directly impact their mental health, up from 57% in 2023.

The increased focus on enrollment this year reflects “a broader understanding that benefits selections can have long-term implications for financial well-being and overall health,” Kuretich said. 

The data comes as various research finds that health care and benefits costs are on the rise — a big concern for both employees and employers. According to data released last month by the Kaiser Family Foundation, average premiums for employer-sponsored family health coverage have hit nearly $27,000 a year, a 6% rise from 2024. On average, workers contributed $6,850 toward the cost of family coverage this year, with employers footing the rest of the bill.

Other data suggests that 2026 costs may jump even further.

Some Positive News

Although the reasons for workers spending more time on their benefits selection are less positive, it’s still good that employees are taking enrollment more seriously this year, Kuretich said. 

Alyssa Zeff, vice president and head of the bswift Engagement Agency, a Chicago-based benefits platform, told a recent SHRM webinar it’s nonsensical that employees spend only minutes on benefits enrollment but will research a new phone purchase for hours.

“There’s a really interesting dynamic here as to how important [benefits enrollment] is, yet how low engagement can feel to people, and how quickly they want to make these decisions,” Zeff said.  

Kuretich said employees are likely spending time looking at benefits offered by their employer beyond their basic health insurance plan, including mental health offerings, fertility benefits, and women’s health benefits.

Employer Role

Because employees plan to spend more time on open enrollment this year, employers should “prioritize clear, concise communication and provide both digital and human support throughout the enrollment process,” Kuretich said. It’s key to ensure that educational materials are intuitive and straightforward, she explained, making it easier for employees to understand their options.

That was a strategy reiterated by Sheri Martel, SHRM-SCP, lead of total rewards at SHRM, during another recent SHRM webinar. Even though technology, including AI, is now an important part of employee benefits, “it’s really important that we keep the human touch on those more vulnerable discussions,” she said. “A lot of [workers] still want to talk to a live person. They want to review benefits. It’s important that HR is there for them and has the answers and can have those one-on-one conversations with people.”

Additionally, Kuretich recommended that employers connect benefits choices to broader financial goals, such as retirement readiness. 

shrm.org