The recent recession and the weak recovery which is following it have had pronounced financial effects on many Americans, leaving them unemployed or underemployed, with smaller salaries than in the past or facing other constraints.
People typically seek to compensate, often by cutting expenses. This might start with luxuries and amenities, but often extends to more important things like healthcare, as well. Many who would have been considered middle-class before are now living differently, depending on each paycheck to meet immediate expenses rather than planning ahead the way they once did, NBC News notes.
Job losses, pay cuts, healthcare expenses, unexpected bills, mortgage difficulties and other challenges have piled up, with many affected by multiple financial issues in the struggling economy. Data from the United States Census Bureau shows real median household income fell 6.4 percent between 2007 and 2010. Poverty increased as well. Among the other results of these conditions, more people have turned to government aid in recent years.
Households with incomes between $25,000 and $50,000 have been hit particularly hard, expert Mark Zandi told the news source. One of the major problems for these Americans is medical expenses, because an unexpected cost of significant size could prevent them from paying necessary monthly bills, contributing to a cycle that builds debt.
Workers responding to tough conditions
Taken together, these circumstances may cause workers to focus more on the importance of their salary and employee benefits for the foreseeable future. Until their financial circumstances improve, Americans are likely to look for tangible factors as they consider employment options. While other factors will not lose their importance, those in the most affected demographics in particular may be forced to re-order their priorities for now.
"Has this current recession made things worse? Yeah, in the sense that there are more people in need, and the resources to provide for them have not increased and, in fact, in some cases they have declined," said Darrell Glaskin, deputy director of the Center for Health Disparities Solutions at Johns Hopkins University.
Even people with insurance may find that copays and deductibles are enough to have a significant impact. Those in the most troubled income brackets may not be able to maintain their financial stability if even a single major expense catches them by surprise.
