Debt is Shaping Career Decisions for 40% of U.S. Workers in 2024, According to Latest Workforce Monitor® Survey by the ASA

As financial pressures mount in 2024, a significant portion of U.S. workers are making career decisions influenced by their personal debt, according to the latest Workforce Monitor® survey commissioned by the American Staffing Association and conducted by The Harris Poll in August 2024. The survey reveals that 40% of U.S. workers report their current debt is influencing their career choices, a reflection of the growing financial strain felt across generations.

This data comes at a time when the Federal Reserve Bank of New York has reported rising balances on mortgages, home equity lines of credit, credit cards, and auto loans during the second quarter of 2024. Additionally, credit card delinquencies have seen their steepest rise in a decade, adding more financial stress to an already debt-burdened workforce.

Of the U.S. workers surveyed, 73% said they carry some form of debt, whether it be from mortgages, credit cards, student loans, or medical bills. For 40% of these workers, the weight of this debt is pushing them to make crucial changes in their career paths. This phenomenon is particularly pronounced among younger generations:

This influence manifests in various ways, such as staying in jobs that offer higher salaries but less personal satisfaction or even taking on additional work. The survey found that “56% of workers are likely to take on a side hustle” to help manage their debt, indicating a trend toward juggling multiple income streams.

Richard Wahlquist, CEO of the American Staffing Association, highlighted the growing concerns about how personal debt is reshaping the workforce. “Increased levels of personal debt result in unhealthy levels of stress, damaged credit scores, limited mobility in the job market, reduced quality of life, and reduced prospects for the future for a growing number of individuals and their families,” Wahlquist said.

These stressors are also contributing to uncertainty about job security. The survey reported that 28% of U.S. workers are concerned about being laid off before the end of the year, with Gen Z, Gen X, and Millennials expressing the greatest worries—37% of Gen Z, 35% of Gen X, and 35% of Millennials voiced concerns about potential layoffs. In contrast, only 11% of Baby Boomers shared the same level of concern, likely reflecting more financial stability or longer tenure in their positions.

The findings from the Workforce Monitor® survey shed light on the broader implications of rising debt and financial insecurity among the U.S. workforce. As more workers grapple with debt-related stress, we may see continued shifts in how employees approach their careers, from seeking out additional sources of income to prioritizing job security over personal fulfillment. With the Federal Reserve’s report of rising balances across multiple debt categories, the need for financial relief and career flexibility has never been more evident.

Employers should take note: offering financial wellness programs and benefits that address these growing concerns could be critical in retaining and supporting a workforce increasingly burdened by personal debt.

For more information about the survey, please refer to the American Staffing Association’s October 10, 2024 press release on the Workforce Monitor® survey results.