The State of Retail Workers’ Personal Finances

In fact, a slight majority of those polled (54%) say inflation in the U.S. has become worse over the last year, despite the reality that inflation has dropped by about 30% in the past year – from +3.4% in April 2024 compared to +2.3% in April 2025.

Similarly, half (52%) of those polled rate the economy as not very good or poor, and that it’s gotten worse (50%) over the past year.

But from their vantage point of retail workers, the rising costs of everyday necessities feels like an insurmountable challenge, with over 3 in 4 (77%) rating the U.S. economy as decent at best.

As a result, retail workers feel the tremendous pressure to make ends meet and recognize the negative impact this financial stress is having on their lives. Nearly two-thirds (65%) of retail workers report overdrafting an account, with two in five (39%) having overdrafted their account within the last month, and 17% resorting to taking out a loan within the last year to make ends meet. To reduce expenses, over 2 in 5 (42%) are skipping social activities and having to curtail spending to avoid falling into a seemingly never-ending cycle of debt. Among the areas they admit to reducing their spending on include:

• 66% dining out
• 37% groceries
• 55% entertainment
• 36% self-care
• 41% travel 

As expected, this stress permeates into their work lives as well. About 41% are looking for a new job, while about 1 in 4 (26%) are calling out of work.

Many have to resort to taking a gig job on the side such as driving a rideshare or delivering food to get access to their pay that day, so they can pay a bill to avoid exorbitant late fees. With over a quarter (27%) juggling multiple jobs, it’s no wonder that over a third (39%) say financial stress inhibits their ability to do their jobs well. And over 6 in 10 (63%) state that due to their work schedule changing, it is difficult to budget their finances.

Another negative byproduct of this financial stress is that retail workers are burnt out, feel less productive, and are looking to leave the industry. Over 4 in 10 (41%) say they are burnt out, 20% have even admitted to experiencing a decline in productivity, and not surprisingly, a significant amount (44%) are looking to leave a retail company.

The problem of employee retention is certainly not acute to the retail industry alone. But according to the U.S. Bureau of Statistics, the average retail employee turnover rate in the U.S. is about 60%, ranking 4th of all industries, only behind hospitality (130%), arts and entertainment (127%), and construction (69%). With the high cost to fill those jobs, retail business owners need to find ways to retain a productive and engaged workforce.

The issue of financial stress negatively impacting retail worker productivity is indicative of a larger problem with the workforce. According to data from financial wellness provider BrightPlan’s Wellness Barometer Survey, employees on average say they are losing more than seven hours of productivity each week due to financial stress, costing U.S. employers $183 billion annually.

However, these uncertain times do provide an opportunity for retail employers, in particular, to help their employees with benefits that can make a real impact in their day-to-day lives.

The challenge for employers is to identify and implement high-impact and relevant benefits that help alleviate their employees’ financial stress while driving retention and productivity.

One such high-impact benefit is the employer-sponsored financial wellness solution of On-Demand Pay.

And the reasons are quite apparent. In the last year, 43% of the retail workers polled reported running out of money between paychecks, and a third (33%) experienced difficulty paying bills on time. However, On-Demand Pay empowers employees with choice and control over their earned wages, helping them pay bills on time. No longer does one need to wait for an arbitrary pay day to access their pay that they’ve already earned. The financial benefit has also proven to help companies recruit and retain a more productive and engaged workforce.

A significant number of retail workers surveyed feel that On-Demand Pay is the answer to their current financial problems. In fact, nearly four in ten (39%) said they would be able to pay for necessities when needed. Over a quarter (27%) feel On-Demand Pay would make them feel more financially secure, and the same number feel it would simply help them enjoy their life more.

It’s a win-win for both employees and employers.

Of note, research from Arizent/Employee Benefits News demonstrates the positive impact DailyPay’s On-Demand Pay solution can have for employers, many of whom are still challenged with a tight labor market. According to the study:

• 30% of employers say they’ve seen a reduction in employee turnover since implementing DailyPay.
• 42% of employers say they have seen higher satisfaction/morale since implementing DailyPay.
• 45% of employees say they are more productive at work because of DailyPay.
• 49% of employees say they are more motivated at work.
• 45% of employees say they either stopped looking for a new job completely or less often.
• 55% of employees say they pick up at least one extra shift per month.

Conclusion

There are about 18 million retail workers in the U.S. They are the backbone of one of the most critical parts of our economy. In 2024, the retail industry in the U.S. generated an estimated $7.38 trillion in sales, according to data from the U.S. Census Bureau. This represents a significant portion of the U.S. economy, with retail sales contributing around $5.28 trillion to the GDP. With this much economic impact at stake, we can’t afford to treat workforce development as an afterthought. It’s imperative that companies identify and implement strategic solutions to make sure those 18 million workers are able to bring the best version of themselves to work every day.