Even as the unemployment rate hovers near a half-century low, the so-called Misery Index, a blend of inflation and unemployment, is at levels last seen during the worst of the pandemic recession and 2008 financial crisis.
For the past decade, Byron Bailey, 37, has comfortably supported his wife and four kids in Los Angeles on his salary as a union electrician. He makes $55 an hour, about 70% higher than the average hourly pay in the US. Now, his wife is planning to get a job so they can afford what they usually could on one income.
“If we want to be in a position to live more comfortably we’re going to need a second income,” Bailey said. His father also had a union job, and Bailey’s mother was able to stay at home. “Now that’s almost impossible on a single income,” he said.
Now that it’s summer, they’re able to save on gas because they aren’t driving their kids to and from school five days a week. The family was spending $170 on gas every week, double what they paid last year.
Bailey said he’s not worried about staying afloat -- for now. There’s a chance his union could strike at the end of the month, though. If he misses pay, “then we will be one of those families that has to make those hard choices, and it’s always frightening to think about,” he said.
For Velazquez, the health care worker, summer camp for her kids -- at a price tag of $400 a week -- wasn’t in the cards this year. She’s relying on family for child care now, while she picks up shifts as close as she can to home to save on fuel costs.
“It literally pains me to put gas in my car every couple of days,” she said. “It’s ridiculous.”
This article was provided by Bloomberg News.