Latest news with #economicUncertainty
Fast Company
13 hours ago
- Business
- Fast Company
How employers can help workers break the paycheck-to-paycheck cycle
A recent study from PYMNTS concluded that two in three Americans fall into the category of living 'paycheck to paycheck.' The term generally means that a worker can make ends meet and pay for basic necessities, but has little or no money for savings or unexpected expenses. But this very prevalent problem goes deeper. The issue lies in that people are expected to budget for two weeks or a month at a time. The stark reality is that it is incredibly challenging to forecast their needs in two-week increments as opposed to managing their costs on a daily basis. Compounding the problem is today's economic uncertainty. Everyone is watching and wondering what will happen with inflation, tariffs, and recession fears while monitoring the rising prices of gas, food, and basic necessities. With this uncertainty comes the question: How will these forces affect jobs? And for people living paycheck to paycheck, this stress is even more acute—especially when there is no safety net or financial cushion to fall back on. As employees face uncertainty around making ends meet, employers have a unique opportunity to help ease some of those pressures. But simply offering a pay raise does not necessarily address the obstacles that workers face on their path to financial security. To break the paycheck-to-paycheck cycle, employees need to be equipped with tools that empower them to take control of their financial lives. Research shows that most workers actually look to their employers for help with their financial health. This speaks to the change in expectations from workers. In the past, when the employee's workday was done, whatever happened until they showed up for work the next day was no business of the boss. But times have changed. Employees now bring their stress about money from home to the workplace, and this can show up in the quality of their work. Workers who are financially stressed are less productive, less engaged, and frequently call out sick —and this is costing companies billions of dollars each year. Instead of actually being sick, many workers are also calling out to their day jobs so they can do a gig job for the day to get paid when their shift ends. Over one in three (36%) people in the U.S. workforce, or about 57 million Americans, have a gig job either as their primary or secondary job—a dramatic increase from just a few years ago. The reason for many is to work somewhere where they feel in control of their financial outcomes. It's now become a financial imperative for companies to provide the tools for their employees to succeed and bring the best version of themselves to work each day, and to help them alleviate the stressors that are preventing them from succeeding at work. Here are three ways you can help your employees break the paycheck-to-paycheck cycle and establish a level of financial security. 1. FACILITATE FINANCIAL EDUCATION Knowledge is power—yet balancing a personal budget is not taught in most schools. For many workers, especially those just starting out in their career journeys, offering concrete, actionable financial education can be incredibly valuable. This education should be relatable and include relevant areas that impact workers on a daily basis, including learning how to create and stick to a daily budget. Understanding their daily costs for rent, car payments/transportation, and utilities is critical to understanding their spending money. 2. PROVIDE SHIFT MANAGEMENT OPTIONS The needs and expectations of today's workforce have evolved, especially coming out of the global pandemic five years ago. They crave flexibility and a sustainable work-life balance. When employees have the option and flexibility to pick the shifts that align with their needs and priorities, they can be more engaged and productive. This also helps empower them to take extra shifts to help their bottom line and meet their own financial responsibilities. 3. OFFER FINANCIAL WELLNESS BENEFITS In a 2024 survey, over one in three Americans said they were charged a late fee on a bill in the previous 12 months. For someone living paycheck to paycheck, each late fee is another step toward falling into the never-ending cycle of debt. Oftentimes, a late fee is a result of the misalignment of a bill and the timing of the paycheck. Employers now can offer financial wellness benefits such as on-demand pay that enables workers to pay bills on their own schedule (full disclosure: DailyPay offers this solution). By empowering your employees with choice and flexibility with their pay, they can avoid late fees, incur less credit card debt, and avoid expensive options such as payday loans to make ends meet. The greatest asset of any company is its people. Success is directly related to the day-to-day success of your workforce, so are you doing enough to make them successful? Are you equipping them with the tools they need to bring their best to work? Because when they succeed, you succeed. The time is now to support your employees on their financial wellness journey and help break the paycheck-to-paycheck cycle once and for all.
Yahoo
3 days ago
- Business
- Yahoo
BEA Union Investment CEO on Business
BEA Union Investment CEO Janet Li discusses investor sentiment and opportunities amid economic uncertainties. She speaks with David Ingles and Avril Hong on "Bloomberg: the China Show". Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Ulta's 45 million loyalty members will drive its personalization plans
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Ulta Beauty plans to better personalize its digital experience as the company prepares to navigate economic uncertainty, executives said on a Q1 2025 earnings call Thursday. The beauty retailer is expanding its automation and real-time content delivery capabilities across key digital channels, according to President and CEO Kecia Steelman. Ulta's loyalty program, which grew its membership 3% year over year to 45 million in the first quarter of 2025, will drive this effort, according to Steelman. 'Again, it's really taking our deep knowledge and understanding of our loyalty member base and elevating that personalization, that connectivity and communicating with them in the ways that they best feel suited,' she said on the call. Ulta Beauty wants to focus on the aspects of the business it can control, including customer experience, as it works to retain and attract customers amid economic uncertainty and increasing competition in the beauty space. 'I would just say beauty and wellness is what we do,' Steelman said. 'And when a lot of other players are trying to come into this space, this is where we are the experts. We have a leading loyalty program. Our omnichannel offering is anchored in that human connection, that in-store and that powerful digital connection — that combo really does set us apart.' Ulta's upcoming omnichannel investments will build on recently launched app features. Split Cart lets customers divide orders between multiple fulfillment methods, while Shop My Store offers users real-time visibility into store assortment and visibility. More than 60% of e-commerce sales are made through the app, according to Steelman. However, the company is exploring ways to enhance the digital experience beyond the app alone. 'We're accelerating our capabilities to deepen guest connection and drive performance,' Steelman said. 'We've expanded automation and real-time content delivery across key digital channels, allowing us to respond faster, personalize at scale and enhance the overall guest experience.' While digital is a focus, stores still account for 80% of Ulta's sales, according to Steelman. The retailer won't leave the in-store experience behind, and it's putting an emphasis on better in-stock rates. Ulta also increased the number of payroll hours in its stores in its latest quarter, according to Steelman. While this was a significant expense for the company, the additional worker hours paid off as the brand recovers from a downturn last year. 'We're just doubling down and making sure that we're giving the very best guest experience that we can in our stores, making sure that we have great marketing campaigns to drive the traffic into the store, and making sure that we have the products for the guests when they're coming in and giving a great guest experience,' Steelman said. Ulta's investments helped it achieve a solid quarter. Comparable sales rose 2.9% year over year in the first quarter of 2025, according to a company earnings report. Net sales rose 4.5% to $2.8 billion. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
3 days ago
- Business
- Globe and Mail
U.S. consumer spending slows in April, inflation rises moderately
U.S. consumer spending increased marginally in April, with households opting to boost savings amid mounting economic uncertainty because of a constantly changing tariff landscape. The report from the Commerce Department on Friday suggested the economy struggled to rebound early in the second quarter after contracting in the January-March quarter for the first time in three years. Gross domestic product could, however, get a lift from a sharp contraction in the goods trade deficit last month as the front-running of imports to beat tariffs faded. Inflation was muted in April, with a measure of underlying price pressures posting its smallest annual increase in four years. A U.S. trade court on Wednesday blocked most of President Donald Trump's import duties from going into effect in a sweeping ruling that the president overstepped his authority. They were temporarily reinstated by a federal appeals court on Thursday, adding another layer of uncertainty over the economy's outlook. 'Consumers appeared to be saving for a rainy day last month as the Liberation Day tariff shock shook consumer confidence,' said Scott Anderson, chief U.S. economist at BMO Capital Markets. Consumer spending, which accounts for more than two-thirds of economic activity, rose 0.2 per cent last month after an unrevised 0.7 per cent jump in March, the Commerce Department's Bureau of Economic Analysis said. That was in line with economists' expectations. Spending was supported by outlays on services, mostly housing and utilities, health care as well as restaurants, hotels and motel stays. But goods spending softened amid cutbacks on purchases of motor vehicles and parts, clothing and footwear as well as recreational goods and vehicles. Pre-emptive buying of goods ahead of Trump's sweeping import tariffs helped to push spending higher in the prior month. Most of the tariffs have been implemented though higher duties on goods have been delayed until July. Duties on Chinese imports have been slashed to 30 per cent from 145 per cent until mid-August. Economists have argued that Trump's aggressive trade policy will sharply slow economic growth this year and boost inflation, concerns echoed by Federal Reserve officials. Minutes of the U.S. central bank's May 6-7 meeting published on Wednesday noted 'participants judged that downside risks to employment and economic activity and upside risks to inflation had risen, primarily reflecting the potential effects of tariff increases.' The U.S. central bank has kept its benchmark overnight interest rate in the 4.25 per cent to 4.50 per cent range since December. The economy contracted at a 0.2 per cent annualized rate in the first quarter after growing at a 2.4 per cent pace in the October-December quarter, largely depressed by a flood of imports. With most of the tariffs in place, imports are collapsing, helping to compress the goods trade deficit by 46 per cent to $87.6 billion in April, a separate report from the Commerce Department's Census Bureau showed. Goods imports decreased $68.4 billion to $276.1 billion. Exports of goods increased $6.3 billion to $188.5 billion. U.S. stocks opened lower. The dollar rose against a basket of currencies. U.S. Treasury yields edged higher. But given the on-again and off-again nature of the tariffs, the front-running of imports is probably not over, and neither is the gloom over the economy likely to lift soon, evident in the deterioration in consumer sentiment. That is prompting consumers to build savings. The saving rate jumped to a one-year high of 4.9 per cent from 4.3 per cent in March. Inflation was benign in April, with retailers likely still selling inventory accumulated before the tariffs. The Personal Consumption Expenditures (PCE) Price Index rose 0.1 per cent last month after being unchanged in March, the BEA said. In the 12 months through April, PCE prices increased 2.1 per cent after advancing 2.3 per cent in March. Stripping out the volatile food and energy components, the PCE price index gained 0.1 per cent last month following an upwardly revised 0.1 per cent gain in March. The so-called core PCE inflation was previously reported to have been unchanged in March. In the 12 months through April, core inflation rose 2.5 per cent. That was the smallest advance since March 2021 and followed a 2.7 per cent increase in March. The Fed tracks the PCE price measures for its 2 per cent inflation target. Economists expect inflation to accelerate this year as tariffs raise goods prices. Consumers' one-year inflation expectations have soared. The Fed minutes on Wednesday showed some policymakers assessed that the surge in short-term inflation expectations 'could make firms more willing to raise prices.' They also saw a risk that longer-term inflation expectations 'could drift upward, which could put additional upward pressure on inflation.'
Bloomberg
4 days ago
- Business
- Bloomberg
BEA Union Investment CEO on Business
BEA Union Investment CEO Janet Li discusses investor sentiment and opportunities amid economic uncertainties. She speaks with David Ingles and Avril Hong on "Bloomberg: the China Show". (Source: Bloomberg)
