Marvin OnumonuOnly 12% of UK workers said their wages have kept up with inflation, according to a study from LiveCareer.
Most said they were worried about a recession, with 89% naming it as a concern.
Three out of four (75%) said inflation and the cost of living were their top financial worries.
Nearly half (47%) admitted to cutting back on spending just to get by, and almost a third (31%) said they didn’t have significant savings.
One in 10 (11%) said they were struggling to afford essentials like food, housing, and utilities.
Only 5% said they were financially better off than a year ago.
The report also found that 40% of workers felt financial stress at least weekly, with 18% saying they experienced it daily.
Nearly nine in 10 (89%) workers said they were worried that trade conflicts and tariffs would push prices higher.
Average weekly earnings rose by 5.2%, but only 12% of workers felt their income had kept up with inflation.
39% said their earnings had not kept up at all.
Most workers said they had to make cuts to cope with rising costs.
64% said they had reduced discretionary spending, 38% had put off major purchases, and 37% said they had even cut back on essentials.
15% said they had borrowed money or increased their debt, and 14% had taken on extra work.
89% said they were concerned about a recession this year.
58% expected layoffs to increase, while 54% admitted they could not survive more than three months without income.
42% said they were worried that new technologies like artificial intelligence (AI) and automation would negatively impact their jobs in the next three to five years.
Only 9% said they were pursuing formal education or certifications, and 17% said they wanted to retrain but could not afford to.
65% of workers said they no longer believed that hard work could bring financial stability.
68% said they supported a universal basic income, while 71% said they would not relocate for a better-paying job.
