More Than a Third of Working Americans Experienced a Pandemic Pay Cut
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CHARLOTTE, N.C., Dec. 1, 2020 /PRNewswire/ -- More than a third of full-time American workers have had their pay cut because of the coronavirus pandemic, according to the latest MagnifyMoney survey.

MagnifyMoney surveyed nearly 1,000 full-time American workers to gain a better understanding of pay cuts, pay raises and bonuses over the past year — and in the next year. The news isn't all bleak, though: While many workers experienced a pay cut, more than half of full-time workers have received a pay raise in the past year — even though 8% fewer workers received one than in the previous year.

Key Findings:
  • Just over a third (34%) of full-time workers experienced a pay cut due to the coronavirus pandemic. While men and women experienced pandemic pay cuts at nearly equal rates, men (52%) were more likely than women (44%) to say their pay has been restored.
  • 54% of full-time workers received a pay raise in the past year, down from 59% in our 2019 report. Of those who got a raise, half were surprised by it, while a quarter asked for it.
  • More men (58%) received raises than women (48%). Additionally, men who received raises were more likely to be promoted compared to women.
  • The number of working Americans who think they'll get a pay raise next year dropped by 17%, from 47% in 2019 to 39% in 2020.
  • 28% of workers said their company made changes to bonuses amid the pandemic. In fact, 15% reported their company decided not to grant bonuses this year, while 13% said their bonus was reduced.

There was a significant age gap regarding pay cuts. Millennials (38%) were the most likely generation to experience a pay cut because of the pandemic; however, 53% of millennials had their pay restored after it was cut.

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"It's definitely encouraging to hear that millennials are likely to have their pay restored after a pay cut, as a lengthy cut in pay can cripple one of the more financially vulnerable generations," said Sarah Berger, MagnifyMoney's millennial finance columnist.

"Many millennials are struggling with crushing student loan debt and a weak job market at a time when many are also likely considering making serious financial decisions, such as buying a home, getting married and having children," she added. "It's essential for millennials and other young generations to be on solid financial footing before they make these big purchases."

To view the full report, visit: https://www.magnifymoney.com/blog/banking/coronavirus-pay-cut-survey/.

Methodology

MagnifyMoney commissioned Qualtrics to conduct an online survey of 984 Americans who are currently employed full time. The survey was fielded Nov. 6-11, 2020.

Generations are defined as the following ages:
  • Millennial: 24 to 39
  • Gen X: 40 to 54
  • Baby boomer: 55 to 74

The survey also included responses from members of Generation Z (18 to 23) and the silent generation (75 and older). Due to the low sample size among both age groups, their responses were factored into the overall percentages but excluded from the generational breakdowns.

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About MagnifyMoney

MagnifyMoney.com, a subsidiary of LendingTree, makes it easy for consumers to shop for the best financial products and get answers to their most important financial questions. MagnifyMoney's unbiased advice and comprehensive product database helps millions of people compare credit cards, loans, checking accounts and savings accounts. MagnifyMoney's newsroom of personal finance experts is dedicated to helping people save money and lead financially healthier lives through strategies and tips for avoiding fees, getting out of debt, paying off student loans, avoiding consumer scams and other financial topics. MagnifyMoney was launched in 2014, was acquired by LendingTree in 2017, and is based in New York, NY. For more information, please visit www.magnifymoney.com.

Media Contact:
Nancy Jones
[email protected]

SOURCE MagnifyMoney.com

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