September 24, 2021

How are people feeling after a global economic crisis

Author:
Sadia Corey, VP, Client Development
25% of Americans said their personal financial health has improved

The pandemic had significantly impacted the nation's financial landscape, with many people losing jobs, revaluating their finances, and facing an economic recession during unprecedented times. Although we have slowly found our footing, plenty of Americans still experience stress and anxiety stemming from the financial impact of COVID.


The pandemic lockdown caused a significant influx in losses of jobs, with many domains halted along with entire in-person “non-essential” companies during the pandemic. When jobs were limited, and job employment dropped in many economies, Americans still faced some hesitation feeling secure. In a recent poll conducted by Savanta, only 18% of Americans said their job security has improved compared to before the pandemic, with 26% of people in the Northeast believing job security improved and 12% in the West. In comparison, 34% of individuals age 25 to 34 believe that their job security improved compared to before the pandemic, which is significantly higher than those aged 45 and above at 10%. As the Northeast begins to get back to some semblance of normalcy, people think their lives and financial burdens are beginning to return to life, with jobs becoming more accessible.

Regarding income and household financial health, 23% of Americans said their health had improved compared to before the pandemic. Of those Americans, 47% of people were between the ages of 25 to 34, which is significantly higher than those aged 18 to 24 (19%), 35 to 44 (24%), and 45 and above (16%).

In terms of personal savings and financial health, 25% of Americans said their personal financial health has improved, and 25% said their personal savings have improved during the pandemic. 35% of Americans aged 25 to 34 said their financial health improved since the pandemic started, which is significantly higher than people aged 18 to 24 (15%) and 55+ (18%). Similarly, the demographic age group 25 to 34 found the most improvement in personal investments, at 34%, compared to other age groups (65-plus were at 17%).

Overall individuals who are 25 to 35 years-old appear to be the most confident and hopeful in their financial situation since the pandemic started. As companies begin to hire again, our prediction becomes that they are directing their search to people who have enough experience, but still willing to put in the hours during the prime of their working years. This then translates to their personal savings and household financial health positively.

As a general matter, the pandemic is far from over, with many understanding that these financial burdens will only come around at some other point in our lifetime. With 25 to 34-year-olds feeling the most optimistic about their finances, there needs to be significant change for others looking to improve their economic standing.  In whatever way people have been affected during this past year, reassessing long-term financial goals is essential to move forward and prepare as the economy recovers.

 

 


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