a March study from Wallethub found “credit card debt increased by $85.8 billion during Q4 2022 – the highest quarterly increase ever recorded.” Job losses are cutting into spending power, even for six-figure earners Recent months have also seen big layoffs, particularly in the tech industry as high-profile companies like Google, Apple and Amazon have announced plans to cut jobs. Other businesses like Goldman Sachs have also unveiled plans for thousands of layoffs this year. “I’ve always been saving, but I’ve been way more aggressive more recently. I’m not in the tech field, but I’ve seen these massive layoffs,” Canela said. “It’s a very scary thing when people in your close circle have lost their jobs.” Research has shown more consumers making more than $100,000 annually say they’re living paycheck to paycheck.
US labor market cooling; leading indicator flashes recession