KEY INSIGHTS
1. With consumers looking to pull back on their spending, how will company earnings look over the next few quarters? And are companies and workers ready for near inevitable layoffs that are on the horizon?
2. 40.8% of respondents indicate that they are eating out less in response to higher gas prices. 43.2% of respondents indicated that they are choosing to spend less on food in general.
3. 39% of respondents indicated that they are pulling back on travel expenditure. 29% indicated that their savings have been impacted by the higher gas prices.
As the prices of goods and services across the country skyrocket, largely driven by overseas conflict and disruptions to the global supply chain, consumers have become more conservative with their money. The recent shift in spending habits has ultimately hurt companies’ bottom lines — and many are considering layoffs to compensate for their losses, according to a new survey by Employment BOOST, a full-service resume writing, corporate outplacement, and career services company.
The retail, hospitality, and entertainment industries have taken the biggest financial hits as gas prices reach an all-time high, leading Americans to cut back on travel. Higher gas prices have changed consumers’ dining habits in particular, with 40% of survey respondents reporting dining out less, and 43% reporting spending less on food. Similarly, most consumers report they don’t have excess funds to participate in leisure and entertainment activities. As a result, affected companies have seen a significant dip in their quarterly earnings and are considering layoffs to pull back on costs.
“As businesses continue to cut jobs due to mounting economic struggles, they have a responsibility to transition and support their former employees by providing outplacement opportunities,” said Ryan Miller, career services executive at Employment BOOST. “By taking advantage of outplacement packages like what Employment BOOST offers, current and future workers, as well as customers, will take notice that the business values its team, even during tough transitionary periods.”
The Employment BOOST survey also found that as the cost-of-living increases, 58% of female respondents have retained a second job to make ends meet, as they earn an average of 82 cents for every $1 men earn. More than half of respondents also reported that rising gas prices influenced their decision to work from home, with 62% saying they work remotely at least occasionally.
“The commute to work is an additional cost that employees must take into consideration,” said Miller. “Most job seekers want remote or hybrid positions, so this is something employees have the power to adjust as they navigate changing positions.”
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INCLUDED IN THIS REPORT
The Employment BOOST Inflation & Spending Survey was conducted in Q2 2022 and surveyed approximately 450 U.S. workers aged 18-65, with increased weight on individuals located in major metropolitan areas and prime working years. Respondents represent all 50 U.S. states.
ABOUT EMPLOYMENT BOOST
Employment BOOST is a full-service resume writing, corporate outplacement, and career services company. With offices across the US and a staff constructed of Certified Professional Resume Writers, Certified Professional Career Coaches, Certified Diversity & Inclusion Recruiters, Executive Search Consultants, and SHRM-CP, Employment BOOST is uniquely positioned to provide best-in-class guidance and consultation to professionals looking to advance in their careers.