Many Americans would rather count on modest paying jobs than have high paying jobs which might face jeopardy. This is based on a new study from the Federal Reserve.
According to the Report on the Economic Well-Being of U.S. Households in 2017:
For many, stability of income is valued highly. Three-fifths of workers would prefer a hypothetical job with stable pay over one with varying but somewhat higher pay. Those who work an irregular schedule in their actual job are somewhat more likely to prefer varying pay in the hypothetical choice than those who work a set schedule.
This is despite the impression among many Americans that they are much better off financially than at anytime since the report was launched in 2013. The reason may be that many Americans still do not have a financial cushion The reports shows:
• Four in 10 adults, if faced with an unexpected expense of $400, would either not be able to cover it or would cover it by selling something or borrowing
money. This is an improvement from half of adults in 2013 being ill-prepared for such an expense.
• Over one-fifth of adults are not able to pay all of their current month’s bills in full.
• Over one-fourth of adults skipped necessary medical care in 2017 due to being unable to afford the cost.
While most Americans believe they are much better off than four years ago, the effects of the recession may have lingered. People may own homes, and have other assets, but clearly they are not liquid. While wages may be higher, Americans are either not at all frugal, or have base expenses which they have badly managed, at least in comparison to their incomes.
Many Americans have enjoyed a recovery which is now approaching seven years, but they have little to show for it in terms of a financial buffer. Maybe that is why they want to have stable jobs.