LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today released findings from the 15^th edition of the Reality Check: Paycheck-To-Paycheck research series, conducted in partnership with PYMNTS.com. The Employment Edition provides an overview of consumers' employment characteristics, changes and expectations and how they affect their financial lifestyles.

Today's Paycheck-To-Paycheck Landscape

As inflation continues to outpace wages, the share of consumers living paycheck to paycheck nears a historic high. Sixty-three percent of consumers were living paycheck to paycheck as of September 2022, compared to 57% in September 2021 and the recent high of 64% in March 2022. Financial strain is also extending to groups historically used to managing their budgets comfortably. The share of paycheck-to-paycheck consumers has spiked among mid- to high-income earners, with 63% and 49%, respectively, claiming to live paycheck to paycheck, up from 57% and 38%, respectively, a year ago.

Living Paycheck to Paycheck as an Employee

Sixty-five percent of employed consumers were living paycheck to paycheck in September 2022 —a 5 percentage point rise from a year ago. Among those of working age, consumers who live paycheck to paycheck comfortably are the most likely to be employed. In fact, inactive workers make up a significant share of those who do not live paycheck to paycheck.

"The five-percentage point increase in employed consumers living paycheck-to-paycheck from last year is an indication of how consumers are not able to keep up with the pace that inflation is increasing," says Anuj Nayar, LendingClub's Financial Health Officer. "Being employed is no longer enough for the everyday American. Wage growth has been inadequate, leaving more consumers than ever with little to nothing left over after managing monthly expenses."

Financially struggling consumers are disproportionally concentrated in the retail and services segments. Twenty-six percent of financially struggling consumers have more than one employer. Less than four in 10 consumers think their current jobs meet their wage expectations. Even high-income consumers are likely to say their current jobs do not meet their salary expectations.

Dissatisfaction about wage expectations is a strong differentiator in willingness to switch. Three in 10 workers are likely to change their jobs over the next six months. Those financially struggling evidence the highest turnover rates, with four in 10 not very or not extremely likely to be at their current jobs six months from now.

However, while many consumers have switched jobs to upscale their paychecks in the past, the report shows optimism about finding a new job that fits both wage demands and an employee's qualifications is generally low. Regardless of demographic, only 34% of consumers find it very or extremely likely that they will find such a job in the next three months.

The report also shows the benefits of staying with a job for a longer period, consumers with more than five years in their current position are 20% more likely to have above-average credit scores than the average consumer. Their average savings are 18% higher.