Inflation continues to be on the mind of many Americans. Indeed, the average price of purchasing a new car is now $48,644 while the median home sales price is $426,900. And 20 percent of seniors have reportedly had to return to work to deal with rising food, rent/housing and utility costs.

A newly-released Labor Day Survey report by WalletHub provides more insight into how inflation is impacting Americans.

Around 74% of people think that inflation is erasing their hard work, according to WalletHub’s 2024 Labor Day Survey. This nationally-representative survey examines Americans’ Labor Day plans and how people have been impacted by the current economic environment.

Alongside this survey, WalletHub also released its Labor Day Fun Facts report to educate and entertain consumers with stats on all aspects of the holiday – from hotdogs and history to financials and 5Ks. You can find highlights from the survey below.

Labor Day Survey

• Inflation frustration: 74% of people think inflation is erasing their hard work.
   
• Impact of inflation: Nearly 2 in 3 Americans say inflation is affecting their Labor Day plans.
   
• Year-over-year improvement: 67% of Americans say they are doing better financially than they were last Labor Day.
   
• Working harder for the money: 67% of people believe they’re working harder this year than last year.
   
• Trying to make ends meet: 93% of people want a raise to keep up with inflation.
   
• Labor Day deals: 66% of Americans think Labor Day sales offer good deals.

For the full survey results, please visit: 
https://wallethub.com/blog/labor-day-spending-survey/39381

Key takeaways and WalletHub commentary are included below in text and video format. 


Expert Commentary

WalletHub’s survey found that 74% of people think inflation is erasing their hard work. What can workers and employers do to reverse this trend?

“Find ways to become more productive. The economist Milton Friedman famously said that inflation happens when we have too much money chasing too few goods. Fortunately, inflation has eased as money creation has slowed down, so we are doing better on the ‘too much money’ side. As for the ‘too few goods’ side, heavy regulation in the markets for labor and housing is holding us back. Some states and municipalities are taking a long-overdue look at the regulations that have made housing so expensive, like minimum lot size requirements and restrictions on multistory buildings, which is a good thing. Getting rid of occupational licensing and streamlining immigration rules to make it easier for people to move to the U.S. legally would go a long way toward fixing the ‘too few goods’ problem.”
Art Carden – Professor, Samford University in Birmingham, Alabama
 
“There is not a lot that workers and employers can do individually to reverse the rate of inflation, but there are ways to stay afloat. Some ways to do this are to rein in excess spending, save in ways that take advantage of higher interest rates and market returns, and hold off on more significant purchases until wages catch up or prices fall. This is not a time to lose hope and give up on hard work. Quite the contrary. This is the time to stand out so that when the benefits of hard work pay off, they pay off bigger, particularly in occupations that are commission-based or use merit pay. Employees might seek additional training or education to enhance their skills. Employers can help workers through training programs, which can lead to internal promotions and pay raises, allowing employees to keep pace with inflation.”
Cathy Carey, Ph.D. – Professor, University of Southern Indiana
 

Nearly 2 in 3 Americans say inflation is affecting their Labor Day plans. What are the best ways to celebrate the holiday on a budget?

“Labor Day is a great time to relax and spend time with family and friends while taking a break from work. You can enjoy a ‘staycation’ at home by exploring local entertainment and recreational activities, nearby historical landmarks, and state or national parks. Hosting backyard barbecues is a fun and cost-effective way to celebrate, although prices for beef and other meats, which are already at historical highs, tend to increase around major holidays due to higher demand.”
Cathy Carey, Ph.D. – Professor, University of Southern Indiana


 
Do you agree with the 66% of Americans who think Labor Day sales offer good deals? What types of items tend to have the best deals?

“I have noticed that I personally tend to spend more overall on Labor Day, as expected. The best deals are on items whose purchases are highly sensitive to changes in prices. For example, you would not expect a good deal on gasoline since there are few substitutes and people can only consume a certain amount at a time (e.g., to fill a gas tank). On the other hand, people may want to stock up on items like clothing and school supplies, items not purchased very often, like furniture or appliances, and items going out of season. Businesses are aware of this, so Labor Day sales may lead to some pretty good deals on these products while still increasing profits for companies. Like any major holiday sale, the key for the consumer is to know which products those are and to keep track of prices well before the sales to determine if you have truly gotten a good deal.”
Cathy Carey, Ph.D. – Professor, University of Southern Indiana
 
“It is important for consumers to avoid thinking they are saving money when they are not. If you get ‘40% off’ a $1,000 couch and buy it for $600, you have not saved $400. You have spent $600. As I recently saw another economist put it, you get 100% cash back on every dollar you do not spend.”
Art Carden – Professor, Samford University in Birmingham, Alabama