The Federal Reserve Board released the Economic Well-Being of U.S. Households in 2022 report May 22, shedding light on the financial security of American adults and their families.
The report assesses how financially secure American adults and their families are, according to a news release. Information from the report comes from the 10th annual Survey of Household Economics and Decisionmaking, known as SHED, which was conducted in October 2022.
"The SHED results provide helpful insights into the economic well-being of Americans. It is important that we continue to refine our understanding of the economic challenges facing U.S. households," Federal Reserve Board Governor Michelle W. Bowman said in the release.
Overall, the research demonstrates rising prices have had a negative impact on the majority of households, and overall financial well-being has decreased since last year, despite the fact that employees have continued to benefit from a robust labor market, the release reported.
Findings about financial health, income, expenses, employment, banking and credit, housing, retirement and investments, higher education and student loans are discussed in the report, according to the release.
The report includes information on how consumers changed their financial habits in reaction to price increases, the release said. Using less of a product or ceasing to use it altogether, transferring to a less expensive product or delaying a significant purchase were all common tactics.
According to the release, 51% of adults said they cut back on their savings as a result of price increases. Indicators of workers' chances for new jobs and wage raises improved compared to 2021.
Over the previous year, more people got raises, asked for raises or voluntarily quit their jobs, while fewer people lost their jobs, the release reported. As an illustration, 33% of adults reported having received a promotion or raise in the last year. This is an increase of 3% from 2021.