• Americans are cutting back on salon visits due to rising costs from tariff policies.
• Gen Zers are visiting salons less, while millennials and Gen X are more likely to stop entirely, CivicScience reports.
• The beauty industry is set to grow at a fast pace over the next few years.

From boba tea to anti-depressants, prices are anticipated to rise under Trump's tariff policies and Americans are already starting to cut back on spending.

Forty-two percent of typical salon patrons said they are going less in the last six months in favor of DIY treatments at home, while 24% have given up the services entirely, per a report published on May 13 by the consumer analytics platform CivicScience.

The polling shows that habits differ by age, with Gen Zers most likely to visit salons less frequently and millennials and Gen Xer more likely to have stopped completely. CivicScience draws its data from polling internet users across third party websites, social media and mobile apps.

Fifty percent of those who used at-home beauty products — like DIY beauty kit subscriptions with press-on nails and at-home hair coloring products — cited cost-saving measures as the reason for their purchases, per CivicScience's survey. Additionally, over half of respondents indicated that they had not purchased beauty products in the past three months.

The CivicScience report also noted that YouTube and TikTok have been educational resources for people to learn make-up techniques and how to create beauty products at home. Though, it isn't clear whether people are relying on online tutorials for beauty tips as a direct result of the tariffs.

The beauty industry is anticipated to continue to grow by the billions over the following years. Between from 2023 to 2028, revenue is forecasted to increase by 6% in North America, per McKinsey's data forecast.

Do you have a story of giving up a product or service because of the tariffs? Contact this reporter at [email protected].

• Stephanie Todd is a disabled transgender person in Idaho, which has banned public funds for gender affirming care.
• It complicates her access to healthcare, and her disability makes it hard to take on extra work to cover costs.
• Todd relies on crowdfunding for medical expenses and daily necessities.

Dishes, check. Laundry, check. Take out the trash, check. Each day, Stephanie Todd meticulously budgets her time and energy to accomplish basic chores around the house.

Todd has chronic pain from a myriad of physical disabilities and illnesses that make it difficult to walk or work full time. The 42-year-old makes around $270 a month and relies on crowdfunding to meet the rest of her monthly expenses.

Compounding her health complications, Todd is also a transgender woman living in Idaho who relies on Medicaid in a state that has banned public funds from covering gender affirming care. It means Todd asks on Bluesky for donations via Venmo to cover her daily expenses and to raise money for her medical transition.

"I am absolutely dependent on donations from strangers to meet my day-to-day medical needs, because my paycheck isn't sufficient and the food stamps don't cover medications," Todd said.

Although there aren't nationwide numbers on transgender people who crowdfund for medical expenses, a study published by the American Public Health Association shows that transgender people are more likely to be uninsured and face barriers to accessing quality medical care. Todd is worried about the future and what potential Medicaid cuts might mean for her financial situation.

"I already got a text from the pharmacy with a bill for a med that should have been covered," said Todd. "I'm already facing an uncertain situation today."

Barriers to healthcare access

Todd said she faces cost barriers and discrimination when trying to access healthcare.

"It's not just difficult getting gender affirming care. It's difficult just getting basic healthcare in Idaho," Todd said, adding that sometimes pharmacists have refused to refill her prescription for hormones.

"A lot of healthcare providers and pharmacies and urgent care places refuse to even provide medical care at all, of any nature, to trans people due to supposed religious objections," Todd said. The Medical Ethics Defense Act, signed into law on March 19, 2025, allows healthcare providers in Idaho to deny patients procedures, prescriptions, and services based on moral, ethical, or religious beliefs.

Todd has a permanently broken foot, neuropathy in her legs, carpal tunnel syndrome in both hands, and gastroparesis, which requires her to see multiple specialists to address all her health conditions. Even if her physicians are supportive of transgender people, doctors sometimes have to navigate the legal minefield of providing gender affirming care in Idaho.

"Doctors in Idaho have to get creative in how they prescribe things in order to still be able to bill Medicaid," Todd said. House Bill 668 restricts the use of public funds for gender affirming medical care for someone's transition. Passed on March 27, 2024, the law makes it illegal for transgender people like Todd to use their Medicaid insurance to pay for hormones or gender affirming surgery.

Other procedures that Todd is seeking, from bottom surgery and breast augmentation to laser hair removal, are not cheap and can cost, on average, tens of thousands of dollars without health insurance coverage, per a study published in the Journal of Law, Medicine, & Ethics.

Relying on mutual aid

Todd lives with a friend for free and works as a caregiver for an autistic adult once a week for 12 hours, earning her about $135 every two weeks. It's not enough to cover her bills, but because of her physical disabilities, she cannot seek other work.

"Walking is incredibly painful," Todd said of her permanently broken foot. "My foot pain is about an 8 to a 9 on the pain chart every day, all day, it never goes away."

She can't afford the things she needs, like orthopedic shoes, and asks her community to donate to meet her daily needs. Her costs per day run roughly $35 to purchase lidocaine and ibuprofen for pain, a diet of protein shakes and Gatorade that won't trigger her gastroparesis, and her hormone replacement therapy of estradiol.

"I personally have been pretty effective at crowdfunding for myself and for other trans women," Todd said of her social media outreach. "I am well connected with supportive people who have a big, massive reach who care about trans issues."

One of those people is DC and Marvel comic book writer Gail Simone. Todd said she has asked Simone for her help amplifying other trans women's GoFundMe pages to her hundreds of thousands of followers, and Simone has always obliged.

But for Todd and other transgender people publicly asking for help, there's a delicate balance between the power and danger of visibility online. She said she's been harassed online by users on 4chan, an anonymous platform.

Regardless of the risks, Todd is out and proud and wants to speak up about "the institutional transphobia that causes a lot of real, tangible hardships" in her community. 2025 is the fifth year in a row that a record-breaking number of anti-transgender laws are being considered and passed, many of them pertaining to restricting access to healthcare, per the Trans Legislation Tracker.

It's important to Todd to explain to the public why she prioritizes her gender transition alongside all her other hardships.

"A lot of my complications go above and beyond just being trans and poor in a red state," Todd said. She said there's the constant trauma she experienced alongside her peers, of being rejected and shunned by family members and a transphobic society.

"Getting gender affirming care, at the bare minimum, alleviates some of that. Which allows us to feel a little bit of euphoria, a little bit of peace, so that we can live in a hostile environment," Todd said.

Do you have a story to share about being trans and facing barriers to accessing gender affirming care? Contact this reporter at [email protected].

• The US remains the world's richest country with a GDP of $29.18 trillion.
• Each state's GDP compares to that of another country
• US GDP fell in Q1 this year, the first decline since 2022.

The US still dominates the global economy as the richest country in the world with a gross domestic product of $29 trillion — over $10 trillion more than the world's second-largest economy, China, at market exchange rates.

In fact, the US is so productive that each state's GDP compares to that of another country. Using annual GDP data from 2024 from the International Monetary Fund and the Bureau of Economic Analysis, Business Insider found the nearest match between each state and a country.

California, for example, surpassed Japan's $4.03 trillion last year to become the world's fourth-biggest economy at $4.10 trillion. And New York generated $2.30 trillion in the same period, a little more than Canada's $2.24 trillion.

This map shows the nearest match for each state. You can mouse over a state to see that country, along with the state's 2024 GDP.

Real estate; professional, scientific, and technical services; and healthcare and social assistance are contributing the most to the overall growth of US GDP, per 2024's Q4 numbers from the Bureau of Economic Analysis.

The US economy ranks 7th globally in GDP per capita, behind Singapore, Iceland, and Norway, per the International Monetary Fund's data. The same IMF data shows that in terms of purchasing power parity, the US is second behind China — meaning Chinese citizens can purchase more goods and services in their currency.

There are signs that the US economy is facing strong headwinds. In this year's first quarter, the US economy shrank by an annualized rate of 0.3%, the first decline since 2022.

Consumer sentiment dropped every month this year, and an economist from Moody's Analytics told Business Insider it could drop further when the "material effects" of the tariffs and other policies begin. Meanwhile, some economists are warning that the US is on a path toward a recession. Other experts are ringing alarm bells that the country could be headed into a period of stagflation — when high inflation is paired with slow economic growth and an increase in unemployment.

• Employers plan to increase hiring by 7.3% for the class of 2025.
• Hardware engineers and certified nursing assistants are the top entry-level jobs, per a new report.
• Jobs like welders, auto mechanics, and emergency dispatchers ranked among the most dangerous.

There's a lot of pressure on new graduates to find a career straight out of college, and it doesn't help that the current job market is challenging.

But things are looking up for the class of 2025. Employers are planning to increase hiring by 7.3% compared to the class before, per the National Association of Colleges and Employers' most recent job outlook survey published last year.

Hardware engineers, certified nursing assistants, and safety representatives are among the best entry-level positions, per WalletHub's new ranking. The personal finance firm compiled the list by analyzing over 100 types of jobs and using a combination of three categories — immediate opportunity, growth potential, and job hazard — and further weighed those categories using 12 metrics, such as average starting salary, the probability of a position being replaced by a computer, and the typicality of working more than 40 hours a week.

Jobs that had the lowest unemployment rate and did not require candidates to have prior experience were ranked the highest. For example, engineers without specialization ranked third on the list for having a balanced work week, with the starting pay at nearly $77,000, and having a wider range of job opportunities than other professions.

Jobs like welders, auto mechanics, and emergency dispatchers ranked among the most dangerous. Additionally, data entry positions in finance, like new accounts representatives, tellers, and payroll clerks, were ranked lowest in terms of growth potential because of the likelihood of these positions being replaced by artificial intelligence.

Software engineers ranked fourth for best jobs, although Business Insider has previously reported that open roles for entry-level positions in the tech sector have declined and made it harder for Gen Z workers to break through.

It isn't just Gen Z software engineers who are worried about their jobs, but Americans as a whole. In March, two-thirds of respondents to the University of Michigan's consumer sentiment survey said they anticipated unemployment to go up in the year — a level of anxiety not seen since the Great Recession.

Do you have a story to share about struggling to get hired for an entry-level position? Contact this reporter at [email protected].

• California's GDP surpassed Japan's in 2024, making it the fourth largest in the world.
• Robust employment and productivity fueled California's $4.10 trillion GDP.
• Despite housing issues, California's population grows due to immigration and birth rates.

California's economy has exceeded Japan's, making the Golden State the fourth-largest economic power in the world, among other countries.

California's nominal GDP in 2024 was $4.10 trillion, per the Bureau of Economic Analysis, overtaking Japan's $4.03 trillion in the same period, per the International Monetary Fund. Robust economic sectors and productivity have fueled the state's growth.

"California isn't just keeping pace with the world—we're setting the pace," Gov. Gavin Newsom said in a press statement announcing the ranking on April 23. "Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation."

Three countries rank higher than California in GDP: the United States with $29.18 trillion, China with $18.75 trillion, and Germany with $4.66 trillion. But California's GDP grew faster than all three in 2024 at 6%, compared to the overall US economy at 5.3%, China at 2.6%, and Germany at 2.9%.

Despite an affordable housing crisis in California that is contributing to a net increase in residents moving out of state, California's population is still growing in large part due to immigration and natural birth rates.

California continues to be a leader in industries like tech and agriculture. Twenty percent of all Californians are employed in the tech sector, per a report published in June and commissioned by the California Foundation for Commerce and Education. And California is the country's largest agricultural exporting state shipping $24.3 billion worth of food commodities in 2023.

Additionally, the state contributes $83 billion more in federal taxes than it receives in federal support, per the Rockefeller Institute of Government. On April 16, Newsom and California's State Attorney General Rob Bonta filed a suit against the Trump administration seeking to end its tariff policies, which they say hurt the country's overall economy.

"Our progress is threatened by the reckless tariff policies of the current federal administration," Newsom continued in the press statement. "California's economy powers the nation, and it must be protected."

Do you have a story to share about leaving California for a place with cheaper housing? Contact this reporter at [email protected].

• A report by ZipRecruiter shows the fields where rising and new grads can earn six-figure salaries.
• Nursing and program management can pay six-figure starting salaries, and are hiring for entry-level roles.
• Additionally, rising graduates anticipated that their starting salaries would be $101,500 — the reality is $68,400.

It's no easy feat landing a six-figure salary straight out of school, but your chances are better if you've studied in certain high-demand fields.

Consulting, program management, and nursing rank in the top 10 fields to land a six-figure starting salary, per ZipRecruiter's most recent annual grad report that used its marketplace data.

Additionally, nursing and program management are two of the top 10 industries hiring for entry-level roles, per ZipRecruiter.

Where rising grads' career expectations are falling short

For most students, their expectations around pay after graduation did not match their actual earnings.

Rising graduates anticipated that their average annual pre-tax salary would be $101,500, per ZipRecruiter's report, which included a survey performed by PureSpectrum of about 3,000 recent graduates and students graduating within the year. However, the reality is that recent grads earn an average of $68,400 annually pre-tax.

This data point is another indicator that Gen Z isn't feeling great about the workplace. The generation is less engaged than their older peers at work, as Business Insider previously reported.

Additionally, surveyed college graduates reported that agriculture, environmental sciences, and natural resources majors earned the most in their first year at about $85,000. Meanwhile, fine arts, performing arts, and design majors made the least at about $48,000.

Former President Joe Biden's student loan forgiveness program impacted the types of jobs that graduates chose, per ZipRecruiter. Just over half of all students said that the policy influenced their job plans, including allowing them to pursue lower-paying but more satisfying occupations.

The Trump administration announced on April 21 that it would resume collection on defaulted borrowers starting on May 5.

Are you a recent college graduate struggling to be hired? Reach out to this reporter to share your story at [email protected].

• Boba tea prices may rise due to potential tariffs on imports from Taiwan and China.
• Taiwanese tapioca imports to the US increased to 38 million pounds last year, up from 23.2 million in 2019.
• Some boba brands stockpiled supplies, while others explored cost-saving strategies.

Jeren Calinisan and Dominique Nguyen are worried about the price of one of their favorite indulgences: boba tea, a popular Taiwanese sweet beverage, chock-full of chewy tapioca balls.

"$8 already is the most I've ever paid for a boba drink," Nguyen said as she sipped her champion milk tea with jasmine silk boba.

It was mid-April, and the two friends had made a pit stop at Odd One Out, a tea shop in Pasadena, California, two weeks after President Donald Trump announced 32% tariffs on Taiwan, which he later paused for 90 days. Tariffs on China, a major source of other boba supplies, are also still in flux. The tea shops, producers, and boba lovers Business Insider spoke to are already preparing for price hikes.

"As someone who drinks boba a lot, it's already kind of expensive living here in Los Angeles to get boba. So this is a new concern," said Calinisan, 29, who drinks boba around twice a month. Calinisan is Filipino American, and Nguyen is Vietnamese American — for both of them, drinking boba was a popular pastime growing up in the Bay Area.

The Taiwanese treat has grown in popularity in the US, as brands like Starbucks and Jack in the Box have attempted to cash in on the boba craze. The US imported 38 million pounds of tapioca for consumption from Taiwan in 2024, up 927% from 2004, per the United States International Trade Commission.

Odd One Out specializes in its own unique creation of silk boba, a mixture of tapioca and jelly. As a smaller franchise with two stores in Taiwan and three in the US, it's trying to delay the impact of future tariffs for as long as possible.

"We're probably going to try to stockpile as much as we can," said cofounder Patrick Sun. Many of its botanical ingredients are imported from Taiwan, and Sun said it's difficult to find equivalents in the US. "We're not willing to really yield on quality. So for us, it's just going to impact our bottom line."

Selling boba requires importing nearly everything

The gummy consistency of boba comes from the tapioca starch made of cassava plants, a starchy root vegetable predominantly grown in hot tropical climates of Southeast Asia, said David Fan, one of the cofounders of US Boba Company, which produces boba for over 2,000 stores nationwide. Cassava is not as widely grown in the US, and the US Boba Company is one of the few domestic boba manufacturers.

A lot of components that go into selling boba, like machinery, tea leaves, and drinkware, could be hit by tariffs. Even the cups are atypical of US-made cups, due to their rims and sizes, and boba requires wide straws to fit the little balls.

Fan said the company imports tools and tea from China and other parts of Asia. "It's going to increase our cost as much as 20% to 30% overall, across the board."

Boba brands are preparing for possible price hikes and stocking up

Right now, a pound of boba sold by the US Boba Company makes 10 servings and costs $11.99. Fan said that customer prices under tariffs could increase by as much as a dollar more per drink.

Meanwhile, Sun said he expects the tariffs to increase the company's cost of goods by between 8% and 15%. He added that he doesn't plan to raise prices, and that profits could take a 5% hit.

CoCo Bubble Tea, a major boba tea franchise with several thousand stores around the world, stocked up on three months of inventory at its stores, said Kody Wong, its director of business development. He added that he doesn't anticipate the company increasing prices in the next three to four months if tariffs are implemented.

Wong is also anticipating that the company's menus might look different down the line. "We will find more local resources, like a different-flavor juice," he added.

Before the tariffs were announced, the company had been rolling out kiosks to intake orders to cut back on payroll expenses

But Fan said the plan to keep prices the same for customers isn't realistic in the long term if tariffs do come into effect.

"No one is going to be able to just eat the cost for a long time," Fan said. "Business people in the long haul are going to have to make a profit."

Just a few blocks down the road from Odd One Out, Julianna Martinez and her coworker were sharing boba drinks at a local arcade café.

Martinez said she's already feeling the brunt of inflation in her boba spending habits and is nervous about the tariffs.

"I remember when boba used to be $0.50 extra," said Martinez, 23. Now she's been forgoing the tapioca toppings in her drinks to save money. "I sacrifice my preferences for the price."

But Calinisan isn't ready to completely give up one of her favorite drinks. If prices go up, she'll have to buy boba less frequently.

"There's also the fact that I can't make boba myself," Calinisan said. "That's another reason why I'm willing to spend so much."

Do you have a story to share about how tariffs could impact your life? Contact this reporter at [email protected].

• Americans are dealing with a palpable sense of uncertainty about the economy.
• Most react to money fears in three ways: fight, flight, or freeze.
• Which are you? Identifying your reaction can help regain a sense of control when anxiety strikes.

Job applications, panic buying, and tuning out the news: Which one's closest to your reaction to economic anxiety?

"We want the economy to keep rolling smoothly in the background while we live our lives," Joseph Coughlin, director of the Massachusetts Institute of Technology AgeLab told Business Insider. "So when we see this great uncertainty, it only adds to the stress that we're already trying to manage."

Coughlin said that many people cope in three ways: fight, flight, or freeze. In other words, Americans' money anxiety mirrors their natural reactions to other fears.

In recent months, BI has heard from dozens of Americans who are dealing with uncertainty regardless of their age, financial situation, or political affiliation.

The US isn't in a recession yet, but most of the people we spoke to are worried about short-term price increases, their student loan payments, or their 401(k)s. Some fear a more dire scenario of job losses and a downturn in the months to come.

Amid flip-flopping trade policies, stock market fluctuations, and DOGE cuts, consumer sentiment fell again in April, reaching its second-lowest level since 1952. Consumer spending trends indicate households are feeling the heat of high prices and tariffs.

If you feel powerless in the current financial environment, focus on what you can control and be aware of your own natural fear reaction, said Bradley Klontz, psychologist and professor at Creighton University's business school. He added that the US economy has faced downturns before and always recovers.

"We have a fight, flight, freeze response," Klontz said. "You need to point it in the right direction."

Do you have a story to share about your finances? Fill out this survey.

People in 'fight' mode are busy making plans

Those with a fight mentality toward uncertainty are working hard to make plans. As Coughlin said, they are likely calling their financial advisors, reading news articles, saving extra money, and doing anything else they can to prepare for a potential downturn.

Robert Kistler, 71, retired a decade ago from his career as a product engineer. He and his wife built a seven-figure net worth and strong nest egg, but they're working to dial back their spending. With the long-term future of the Social Security trust fund in question and current staffing turmoil at the Social Security Administration, Kistler said they aren't confident benefits will support them as they age.

"It turns out our annual spending is roughly 20-25% more than in our plan — I am certain this is going to impact our retirement plan confidence level somewhat," Kistler said, adding that he met with his financial advisor this month to make a plan.

Similarly, 65-year-old professor Gail Lisenbard recently paid off her car and started grooming her mini golden doodle at home to save more money. She hopes to retire in the next few months and said she's carefully planned her nest egg, but is now concerned about rising prices.

Younger Americans are taking action to protect their finances, too. Millennial mom Jen Miller had planned to buy a new car before May because her family has a third baby on the way, and they need more room. But, concerned about new tariffs on auto imports, she moved up her timeline because she's worried US car inventory will decline: "We certainly felt spurred into action," she said.

Haylee Bachman, a 30-year-old mother of three near Seattle, said her family lives on a low income and receives some government aid, but their budget has been especially tight lately. Her fiancé's job in car manufacturing became less stable in recent months because the industry is in turmoil with the auto tariffs.

Bachman said she's teaching herself to bake bread, cinnamon rolls, and other kitchen staples from scratch because it's cheaper and has visited food banks to pick up groceries. She's trying to save enough to afford rent and pay for activities like soccer and tumbling that make her kids happy.

"I know that things could get very bad for us since we are low-income and a one-income household," she said. "I'm not sure what the future holds, so I'm just trying to make those tiny changes."

People with a 'flight' reaction make snap financial decisions

A "flight" reaction to economic turmoil can take a few different forms. To protect their finances, Coughlin and Klontz said people with this response are likely panic buying or pulling their investments out of the stock market — snap financial decisions that may not be the wisest, but make people feel better in the moment. Coughlin refers to it as the "I need to get out of here" feeling.

BI has heard from teachers cashing out their pensions, families with tariff nerves overstocking their pantries, and investors primed to sell at the first sign of trouble. Some Americans are considering literal 'flight' — they're moving to other states or countries to escape high costs or policies they disagree with. Others are anxiously stepping back from newspapers or social media to tune it all out.

Klontz said when people get scared, "our survival brain tends to take over."

"Our instincts are great if we're being chased by a rabid dog," Klontz said, "but our instincts are not good when it comes to investing and spending." He advised people to avoid major or impulsive purchases where possible.

Still, Olivia Iverson, 28, doesn't regret choosing to "panic buy" a new MacBook laptop in early April. She pulled the trigger because many laptops are imported from China, and tariffs are likely to raise prices. Trump has since announced a pause on tariffs on electronics for now.

"A laptop is a one-time purchase," Iverson said, adding, "there's some stuff people panic buy that you're going to have to keep buying week to week, even if prices of these items change."

A flight response can lead to moves and major purchases, but it can also be a much-needed emotional break. As a busy mom balancing a household budget, Bachman said she often turns off the news. She said it can be stressful to constantly be on alert for changes in politics or the economy that might affect her family.

"I try to take care of myself as much as possible, just because I can't be the best mom without doing that," she said. "I do self-care, skincare, like face masks, or I sit in silence. That's a big one. I just sit in silence, in the dark sometimes, and just relax."

People who 'freeze' don't know what to do with uncertainty

The most common reaction to economic uncertainty is freezing, Coughlin said. Freezers are looking at the economy — the tariffs, stock ups-and-downs, the tough white-collar job market, and DOGE cuts — and they don't know what to do.

The slow job market has left Christopher Smith's financial plans on ice. The 41-year-old has been looking for a job for about two years, but hasn't found the right fit. He's trying to stay optimistic, but he's "admittedly terrified" of what will happen to his employment prospects if there's a recession. He's taken on a roommate to help with bills.

"I am begging the universe to send me a job ASAP," he said. "I really hoped to be working by now, and I am slowly drowning under my finances."

Michael Salvatore, similarly, isn't sure what to do next. He operates several bars and coffee shops in Chicago. His businesses are at risk of higher costs on everything from eggs to coffee beans. He said he's put all kinds of decisions on hold, including hiring and opening a new location.

"Especially as a small-business owner, the unknown makes it impossible to have a vision that you can execute on," he said, adding, "I'd rather the market crash and know that, 'hey, we're on a level playing field."

Rebecca Walriven-Lawson, 74, is also feeling stuck. She recently lost Medicaid because her Social Security cost-of-living increase put her over the qualification threshold. Without health insurance, she can't afford the surgery she needs to walk comfortably. She isn't sure what to do next.

"There's nothing for any of us to do but wait," she said.

• Extremely low-income households make up one in four renters in the US.
• The market has a shortage of about 7.1 million rental homes for extremely low-income renters.
• Black, Latino, and Indigenous renters face higher unaffordability due to historical discrimination.

A quarter of all renter households are extremely low-income — and there's a huge shortfall in apartments they can afford, per a new report from the National Low Income Housing Coalition.

There are 35 rental homes available for every 100 extremely low-income households — or those at or below either the federal poverty level or 30% of their area's median income, whichever is higher — across the country, per the data analysis published in March. The US housing market has a shortage of around 7.1 million rental homes that are affordable and available to the 10.9 million households that fall below those thresholds.

"You can either boost their incomes through a demand side subsidy, like a housing voucher as a choice voucher," said Dan Emmanuel, an author of the report and a research manager at NLIHC. "Or you can construct units right and expand supply and target those units to extremely low-income renters."

Using data from the 2023 American Community Survey from the US Census Bureau, the NLIHC aggregated information on household economics and demographics. The study found which rental units are affordable for each household based on the units' rent and utility bills falling below 30% of the household's income.

Every state has a shortage of affordable housing for those at the bottom of the income distribution, the worst being Nevada at 17 affordable rentals not already occupied by a higher-income household for every 100 extremely low-income households. The best being North Dakota at 62 rentals.

Although the state of Massachusetts has one of the most expensive housing markets in the country, its capital is ranked second for the availability of affordable rentals. On the other hand, three major cities in Texas — Houston, Dallas, and Austin — are listed among the top five cities with the most severe rental shortages despite the fact that the median price of a home in Texas is around $40,000 less than the national median price.

"It's much easier and cheaper to build housing in Texas," Emmanuel said of the laxer regulatory requirements on developers in the Lone Star State. But he said that doesn't always mean that housing elasticity will ensure affordability. "Some states invest a lot more in housing assistance than other states do."

Pay hasn't kept up with rent increases

Most extremely low-income renters work in low-paying service industry roles like retail or as home health aides, Emmanuel said. Forty-two percent of the labor force in the extremely low-income category works more than 40 hours a week, he added.

Pay has not kept up with rent increases and nearly half of all renter households are cost-burdened, meaning they spend more than 30% of their income on rent, per the Census Bureau.

Emmanuel also said that the national push to raise the federal minimum wage to $15 coincided with a slight decrease in the shortage of affordable housing for extremely low-income renters in 2023 compared to the year prior.

Disparities in housing

Some renters are experiencing higher rates of housing unaffordability than others.

Black, Latino, and Indigenous households are more likely to be extremely low-income renters than their white peers.

"The history is employment discrimination and housing discrimination that kept communities of color out of home ownership and generating wealth and transmitting wealth generationally," Emmanuel said.

Do you have a story to share about rising rent costs in your city? Reach out to this reporter at [email protected] to share your story.

• Rebecca Walriven-Lawson, 74, needs a job to afford back surgery.
• She lost Medicaid due to income limits and relies solely on Social Security for necessary expenses.
• She is one of many older Americans who have told BI they can't afford to live on Social Security.

At 74, Rebecca Walriven-Lawson needs back surgery to properly walk again. But first, she must get a part-time job so she can pay for the procedure.

"One more raise in my rent is going to put me out on the street," said Walriven-Lawson, who lives in Cincinnati with her adult son. "I am fighting a losing battle trying to stay afloat."

Walriven-Lawson lost her Medicaid coverage last April and was told she received too much money to qualify. Her only income is $2,065 monthly in Social Security and survivor benefits, which barely covers her essential living expenses, she said.

Walriven-Lawson's story echoes the narratives of hundreds of older retirees that Business Insider has interviewed. Many are swept up in a retirement crisis as rising costs stretch how much their Social Security can cover.

Health problems compound financial insecurity

Walriven-Lawson started working in factories when she was 18, earning $1.60 an hour in 1968. She built a middle-class life, moving up from service roles as a waitress and truck driver to a travel agent. But then her health problems began stacking up in her late 40s.

Walriven-Lawson was diagnosed with various chronic illnesses like fibromyalgia, degenerative disc disease in her spine, and severe osteoarthritis in both hands. She had to stop working in 2000.

Now, Walriven-Lawson has a collapsed disc in her spine that limits her mobility and needs an X-ray checkup on her hands, as she had undergone a bilateral thumb joint removal. Without Medicaid coverage, she can't afford the necessary treatment, so she's trying to find work to cover the costs of the procedures.

With her son struggling to find employment, her Social Security checks pay for their one-bedroom apartment, where rent is $835 a month plus $125 in electric utility bills. She also has to pay for doctors' appointments and prescriptions. Money is stretched thin, and sometimes they could only afford peanut butter jelly sandwiches to eat, she said.

"I have slept on a couch for three years, but cannot afford two bedrooms," said Walriven-Lawson. "I have no food. No money. Unpaid bills, no car."

Holding on to hope

Walriven-Lawson feels anxious looking at the road ahead but isn't ready to give up. Her first initiative is fighting to restore her Medicaid benefits so she can address her health concerns, she said.

"Of most importance is getting my benefits back so I can pay for my doctors and medicine," Walriven-Lawson said. "That would put approximately $400 back into my budget."

Once she's more financially stable, she said it will free up her energy to focus on finding a job. She hopes that by landing a new position, she'll be able to pay off her bills, receive her delayed health treatments, improve her credit score, and save toward a down payment on a house.

"It is a terrible blow to one's ego to have to beg for help," she said. "I have to go down with a fight. It's the way I was raised, and the way I have lived this long."

• Now in or near retirement, three boomers told BI about their experiences navigating past recessions.
• The 2008 Great Recession taught them to better navigate both the stock market and personal uncertainty.
• "Sometimes you're going to have bad luck," one said. "We just sucked it up and started over again."

Lynn Benning, 67, said every financial downturn has hit her differently.

During the stagflation of 1980, she was in her 20s, single, and stressed out about affording rent on an entry-level income.

Amid the 2008 Great Recession, she was married and in her 40s. She and her husband rethought their assets and retirement prep. They'd just bought a house, couldn't afford furniture for it, and ended up selling it later at a loss.

In today's uncertain economy, she's forgoing major purchases and focusing on building savings. Having cash on hand and avoiding credit card debt helped her reestablish financial stability in the past, she said.

"Sometimes you're going to have bad luck," Benning said. "We just sucked it up and started over again."

It's some much-needed perspective after the stock market's hectic week driven by the twists and turns of President Donald Trump's trade war. Billionaires, CEOs, and Wall Street have signaled they're bracing for an economic downturn. Recession jitters have Americans of all ages saying they're holding off on big purchases, delaying family and job plans, and feeling the emotional weight of economic uncertainty.

With policy whiplash from the White House, BI spoke with three baby boomers about their experiences with past recessions, particularly the Great Recession that followed the 2008 financial crisis: how downturns shaped their finances, major life decisions, and how they approach setbacks. They told us what they learned — and what mistakes young people should avoid.

Don't make drastic decisions

When the housing market crashed in 2008, Nancy Neff was in her mid-50s. She had most of her investments in her 401(k), and though she was losing money in the stock market, she didn't touch her retirement account.

Now, the 72-year-old Connecticut resident's investments have weathered two major economic downturns, but she still managed to retire comfortably with a nest egg of over $1 million after a long career in academia and software engineering. She said she receives a few thousand dollars in monthly Social Security but doesn't have to rely on it to pay bills.

"I put money in a diversified mutual fund and ignored it. I didn't play with it, and I didn't try to time the market," she said, adding, "I'm in pretty good shape."

For retirees — and hopeful retirees — the peaks and valleys of the stock market have caused financial anxiety. Some Americans told BI that they lost tens of thousands of dollars from their 401(k)s in recent months, and others said they are rethinking their plans to leave the workforce.

Still, older Americans BI spoke with cautioned against making rash investment decisions. In the long run, it's best to leave investments as is and ride out any market volatility, they said. BI has heard this advice from financial advisors, too. Per IG Wealth Management, it took the S&P 500 about six years to fully rebound from the 2008 crash, but other downturns have been resolved quicker.

If you can afford to leave your 401(k) alone, Neff said it's the wisest thing to do.

"Have six months at least of savings so that if something happens, you're not cashing in your 401(k)," she said. "Whether that's something happening to you personally or something happening to the larger economy, have a cushion."

This is the time to look for any possible way to cut costs

Beyond having a cool and calm stock strategy, boomers told BI it's important to have cash savings in case of a recession. Having an emergency fund can offer peace of mind in case of job losses, unexpected expenses, or high consumer prices.

It may be tough advice for people who feel like they're living paycheck to paycheck, but boomers said if there is ever a time in life to try to cut back and save, it's ahead of a possible recession.

Gail Lisenbard, 65, is doing her best to build savings. She's a philosophy lecturer at the University of Colorado Boulder but teaches remotely from Naples, Florida. The 65-year-old and her partner have paid off their mortgage, but they're trying to cut costs due to recession fears.

Lisenbard's mindful spending strategy began after she lost her job in the 2008 recession. Since then, she has struggled to find a job that offers a high 401(k) match and has learned how to save as much money as possible on her lecturer income.

She said she paid off her car, which used to cost her $200 a month, and has saved an additional $300 by cutting back on dining out and entertainment. Lisenbard also tries to save money by grooming her mini golden doodle, Abby, by herself.

"I'm saving by making some really serious decisions about what I can do, what I can't do," she said, adding that she hopes to retire this fall.

Financial wisdom comes through ups-and-downs

Some of the baby boomers BI spoke with expressed regrets about navigating past recessions. Benning said she wished she hadn't bought a house before the 2008 market crash, and Lisenbard wished she had built a bigger nest egg when she had a job with strong benefits.

At the same time, all said their takeaways from past recessions taught them how to better navigate the stock market, savings, and major life decisions in periods of uncertainty. They hope the wisdom they've gained over time will help them recover faster from future downturns.

A couple of months ago, as federal policy was beginning to change under Trump, Neff said she added more money to her emergency fund so that she could ride out economic changes. She's done the same in other times of unpredictability, and she said getting a bank account with compound interest allows her to build up her savings quicker.

She now spends her retirement traveling the world. A decade ago, just after she stopped work, she said she boarded a cruise to Europe and still chooses cheap lodging and transportation wherever she goes —because you never know what the future holds. When BI spoke with her this week, she was taking lace-making classes in Belgium.

"Live well within your means when times are good so that when times are bad, you still have a cushion," she said. "And I have always had enough of a cushion."

Have a tip or story to share? Contact these reporters via email or Signal at [email protected] or alliekelly.10; and [email protected] or @jdeng.20.

• Iowa, Oklahoma, and Ohio are the states with the lowest median home prices, per Redfin data.
• Meanwhile, Hawaii, DC, and California have the highest median home prices.
• One of the biggest factors contributing to the steep costs is a lack of supply.

If you want to find an inexpensive home, look to Iowa, Oklahoma, or Ohio.

Those states have the lowest median prices for single-family homes, per a Bankrate analysis of Redfin's monthly housing data from late February. Meanwhile, Hawaii, DC, and California have the highest median home prices. One of the biggest factors contributing to the steep costs is a lack of supply, said Daryl Fairweather, the chief economist at Redfin.

"These places have high-paying job markets, strong economies without sufficient housing," Fairweather said. "Supply is not able to meet demand in these areas because of regulations like single-family zoning red tape around construction and general neighborhood opposition to development of dense housing."

In February, the median existing home price was $398,400, per the National Association of Realtors, and the 20th consecutive month of year-over-year increases.

Regional trends in the cost of housing

Redfin's monthly data shows that the median price of a home in Hawaii is $975,000 and $230,600 in Iowa.

Regionally, the coastal areas of New England and California are more pricey than the South and Midwest. But Fairweather cautioned that may not be the case for long.

"People are leaving expensive areas like the coast and going to places that are cheaper," said Fairweather, adding that demand and housing prices are increasing in the Midwest and South. "They're going to places that have supported new construction, but also places that have growing job markets."

Business Insider has reported on the people who left expensive states like New York and California for cheaper and less crowded destinations.

For example, US Census data showed that more people left California than moved into the Golden State between 2022 and 2023 — and Texas has absorbed the most Californians.

However, housing affordability can remain an obstacle even if people relocate.

Americans need to earn $116,633 annually to afford the median-priced home for sale, per a Redfin report published on Thursday. In 2021, that figure was $63,925.

"Homebuyers have gotten much older," said Fairweather. The median age of a first-time homebuyer is now 38 years old, up from the 1980s when people were in their late 20s, indicating that people are having to save longer before making a home purchase.

Are you a first-time homebuyer trying to purchase a home amid economic uncertainty? Contact this reporter at [email protected].

• Americans face rising grocery costs due to new tariffs.
• Victory gardens are gaining popularity as a way to alleviate high grocery prices.
• A content creator offers four tips for growing a budget-friendly garden.

Grocery costs have been increasing for years, but Americans are bracing for even higher prices due to President Donald Trump's new round of tariffs.

Kendall Brown, a content creator based in Wichita, Kansas, has found ways to save up to $50 a week on food: by cultivating a victory garden. Also known as war gardening, victory gardens were first promoted during World War I as a way for Americans to grow their own food and assist with war efforts.

The practice has become popular again amid a vibecession and the romanticization of trad wife culture — a lifestyle that promotes traditional roles for women in the home — Brown said.

"I think there's a lot of signs that we could be headed into similar dire economic straits," said Brown, referring to the stories she heard from her grandparents, who lived during the Great Depression and the Dust Bowl.

To be sure, unemployment is still low in the US but other economic indicators, like declining consumer sentiment, reveal how Americans feel.

Brown, who usually posts political content, is now using her platform to empower her audience to find affordable ways to cut spending on food. Her videos offering tips for growing your own produce at home have garnered over 1.8 million views on TikTok.

Figure out what vegetables you eat the most and what you can grow

Brown grew up in rural Oklahoma, where she spent every summer helping her mother weed their home garden. From a young age, she learned to live off the land.

The first step to building a functioning victory garden is to be realistic about what will fit your needs, Brown said. To do that, identify the vegetables or fruits that you consume frequently that are easy to grow in your living space.

"I also always encourage people to start small," said Brown. When she started her garden, she made some mistakes by going all in. "I ended up costing myself a lot of money rather than saving myself a lot of money."

Brown encourages aspiring gardeners to consider how much light they get, what they eat, and how much those items cost at the grocery store. For example, leafy greens and herbs can be forgiving on how much light they need and tend to be some of the more expensive items at the store, Brown added.

She and her husband eat a lot of salads so she said her priority is growing lettuce heads in rotation so that they always have some ready to put on a plate.

Tap free resources like a community garden

It can be tantalizing to go all in on a new hobby, but if you're not careful, you can end up spending more money on gardening tools than saving through growing food. To ensure you're not investing more than you need to in your garden, Brown recommends taping free resources like community gardens and libraries.

"If you find a place that already has established beds with soil in them, that can save you hundreds of dollars," said Brown, adding that buying the necessary soil can be pricey. Additionally, members of a community garden may be willing to share tools.

Some libraries offer gardening tools or seed libraries that members can use, Brown said. And if those options aren't available, Brown shared 10 different tools people can also buy for cheap at discount stores.

For example, Brown said that Dollar Tree's basic laundry baskets are the perfect cover for protecting your plants during heavy winds, hail, and rains.

Choose plants based on your environment

As a former renter, Brown knows it can be difficult to plant without access to outdoor spaces and arable land. But that's where the creativity kicks in.

"You can grow strawberries out of a laundry hamper," Brown said.

She also recommends looking into the vegetables that have dwarf or bush varieties, which can grow in compact containers. This can also make it easier for a gardener to move their plants outside during peak sunlight hours.

Don't get scammed

Brown doesn't want beginners to get sucked into perfectionism. Novices can be easily swayed into developing unrealistic expectations for their garden if they're just looking at examples online.

"A huge percentage of the photos of 'gardens' out there on social media right now, are not real gardens, they're AI-generated," said Brown. "A lot of times, they are deeply unrealistic."

In reality, Brown's garden looks a lot messier and chaotic than some of the others portrayed online. "I don't care if it's hideous, as long as it makes the food that my husband and I can consume."

• With tariffs, federal budget cuts, and student loan limbo, Americans are delaying financial decisions.
• 6 Americans told BI how economic uncertainty is shaping their family, jobs, budgets, and retirement.
• While the US is not in a recession, indicators are showing some signs of weakness.

Babies, homes, retirement, and business ventures — all major moves Americans have told BI they're putting on hold as the US reels from economic uncertainty.

Tariffs are set to raise prices on everything from groceries to cars, and sweeping cuts to federal spending have many concerned about their livelihoods. Federal student loan limbo is also leaving millions wondering how they will pay off their debt.

"I feel like I just got done building a life out here," said a Washington DC 28-year-old who resigned from her government job and may have to move due to finances. "I was actually trying to own a home."

Some are even worried about a recession. While the US isn't in one yet, a major indicator of consumer sentiment hit a three-year low in March, and consumer spending was weaker than expected last month. Meanwhile, a closely watched inflation metric has seen its highest jump in a year. Economists have said these conditions are making people less likely to make major purchases and take financial risks.

While some Americans also told BI they support Trump's recent cost-cutting measures and don't plan to make any adjustments to their jobs or savings, six shared stories about holding off on major milestones.

A millennial is weighing starting a family amid student loan uncertainty

Florence Thompson feels stuck. The 39-year-old wants to buy a home and have a baby, but she's not sure what her future monthly student-loan payments will look like. She said she hopes they'll stay in the low hundreds.

Thompson is enrolled in the Public Service Loan Forgiveness program, which forgives student debt for government and nonprofit workers after 10 years of qualifying payments. Trump is taking steps to limit eligibility for the program, which could bar some borrowers from future relief.

Thompson is also on the SAVE plan, created by President Joe Biden to give borrowers more affordable monthly payments. Since July, she and 8 million enrolled borrowers have been stuck in forbearance after SAVE was blocked in court. Thompson has not been able to make payments or earn PSLF credit while the lawsuit plays out. Now, Thompson isn't sure when she will have to add loan payments back into her budget — and how much those payments will be. The Trump administration's recent decision to dismantle the Department of Education has heightened this uncertainty, she said. It's complicating her plans to buy a home and start a family.

"I have the money to pursue IVF, I have the money to buy a home," Thompson said. "But it's like the sword hanging above your head where you don't know when your monthly costs are going to increase and by how much. It's just a real uncertainty, and I know people are in much more difficult positions than myself. It's just not fair, not right."

Until she knows what will happen with her student debt, Thompson is conflicted. "It's really causing me to have to save money rather than spend it on the things that I'd like to spend it on," she said.

A federal employee left a $100,000 salary on the table and is worried about the future of her career

Ashley Shannon submitted her resignation letter last month. The 28-year-old was an attorney in her second year at the Department of Justice's Federal Bureau of Prisons. She said her job felt meaningful — her work helped combat mass incarceration disproportionately impacting Black and brown people.

But, as news flooded in about the firings of federal probationary workers, Shannon made the tough decision to leave her role.

"Higher up in the agency, they pretty much told us it's either you leave or you're going to likely get fired and pushed out," she said.

The career paths for Black women in private-sector law are more limited than in the federal workforce, and Shannon had been excited to build a career in the public interest. She had been making $100,000 a year and was building her life in Washington DC — hoping to buy her first home soon. Now, Shannon has been unemployed since March 5. If she can't find a job by the end of April, she will have to move back to Chicago to live with her parents.

"That is a very defeating feeling as a very new attorney," she said. "I would have to move back in with my family, find another job, and pretty much restart my entire life."

A Gen Zer moved back in with her parents to save up for an international move

Last fall, Bri O. moved back in with her parents. The 23-year-old works a finance job in Charlotte, North Carolina. She didn't picture spending her young adult years in her childhood home, but said it's her best option to save money.

Bri knew she wanted to live abroad at some point in her life — it's an opportunity to experience new cultures and she has her eyes set on Spain. However, she said Trump's return to the Oval Office has accelerated her timeline: She's now trying to save $50,000 by 2026 so that she can move out of the US, maybe permanently.

As a young, queer woman, Bri said she doesn't feel safe living under the Trump administration, especially if she someday chooses to get married or start a family. The government "enacting policies against us in the queer community is having an effect on our lives," she said.

She said she's sacrificing some of her independence by living with family right now, but it's worth it for her finances. Being at home is allowing her to put the money she would be spending on rent and other expenses into savings for her eventual move.

"I'd love to stay in the country where all my friends and my family are," she said, adding, "It's disheartening that I'm leaving because of fear."

A Gen Xer isn't sure she can retire early anymore

Margarita Sdoukos, 49, thought she was going to retire early. She was confident that she and her husband would have a strong enough nest egg to stop working in six years. Due to living below their means, savvy investments, and careful saving habits, the couple felt financially comfortable.

Now, Sdoukos isn't sure she will ever fully retire. The Illinois resident told BI that she and her husband have lost "tens of thousands" of dollars in the stock market since Trump took office in January, and they're shifting to safer investments for their 401(k), even if they are less lucrative. She cashed out her teacher's pension and placed it in an IRA due to "uncertainty in the government." She's concerned about potential changes to Social Security, and now expects to continue working for as long as possible.

"We don't even think about retirement right now," she said.

A business owner is anxious about her next step

Jessica Deseo, 40, has been in the design industry for nearly two decades. She's a California-based, first-generation immigrant and mother who is balancing her own LLC with her role as a 1099 employee for a fellow creative.

With economic policy changing quickly under Trump, Deseo is at a crossroads with her career: go solo with her business or balance her job and freelancing.

"I'm right in the middle of figuring that out, and it's really, really hard," she said.

Deseo said she wants to put energy and money into growing her own business, but it comes with sacrifices. She's worried that potential clients won't have the extra budget to hire her as a freelancer and said that going out completely on her own would be an even bigger financial risk. Right now, she's being cautious about spending and saving as much as she can.

"You see the economy around you and you're just like, 'Jesus, everyone is getting laid off,"' she said.

A baby boomer is putting off a move and saving some Social Security income

Kathy Heller, 67, hoped to move out of her studio apartment in Pennsylvania and buy a new house. However, due to recent changes in the stock market and her fears about the future of Social Security, she said that may no longer be possible.

"I've been wanting to move for the last couple of years, and I just can't now," Heller said. "Everything's changed."

Heller, who worked as a legal secretary, ate through some of her retirement savings while caring for her husband, who was ill for two decades. She works nearly full-time as a real estate agent to supplement her over $3,000 monthly Social Security survivor benefits. She said she's had to wait for four hours on the phone to contact a Social Security representative, and she said she's worried about what her finances may look like a few months from now, especially if Social Security is disrupted in any way.

"My plan is to save $1,000 a month out of my Social Security check, but I live alone," Heller said. "If you don't have savings or a monthly income, you're screwed now."

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• Over a third of Americans, about 91 million people, can't afford quality medical care, per a new survey.
• The survey results come as healthcare costs are on the rise for many Americans.
• Disparities in access to healthcare are rising for low-income, Black, and Hispanic Americans.

Over a third of Americans can't afford quality medical care.

That figure represents about 91 million people, per a survey published on April 2 and conducted by Gallup and West Health, and is a record-high number for the four-year-old survey.

The survey results come as healthcare costs rise, and some people have experienced lapses in health insurance coverage due to policy changes. The study results indicate that the affluent are experiencing little to no change in their access or ability to afford to healthcare, while the low-income Americans are shut out. Dan Witters, one of the survey's authors and researchers, said this is likely due in part to inflation.

"If you're making under $25,000 a year, that absolutely can be the difference between whether you can spend the money on it or not," said Witters, who is also the research director of Gallup National Health and Well-Being Index, when speaking about the ability to afford healthcare.

Researchers split survey respondents into three categories — cost secure, cost insecure, and cost desperate — based on their ability to access and pay for medicine and care. They found that the percentage of people unable to afford healthcare expenses has been rising fastest among low-income, Black, and Hispanic Americans.

Meanwhile, 25% of households making less than $24,000 a year reported being unable to afford and access essential medicine and care in 2024, up from 14% in 2021.

While white adults saw no change in the same time period, Hispanic and Black adults experienced an eight and five percentage point decline in cost security, respectively.

Witters said the costs are highest for those living along the Bible Belt in the West and East South Central regions. He added that fewer people in those regions are insured and have greater health complications, like obesity and diabetes.

"People that are sickest in this country, that have the most chronic conditions, that require the most prescription drugs, are also the ones that are least likely to be able to afford and access our healthcare system," Witters said.

Witters added that a third of the people deemed cost desperate in the survey are cutting back on utilities or food to pay for medical costs.

Others take on debt: West Health and Gallup recently reported that in 2024, 12% of Americans borrowed money to pay for healthcare, which amounted to about $74 billion borrowed.

Additionally, low-income Americans who rely on Medicaid for health insurance are bracing for potentially fewer benefits. In February, House Republicans passed a proposed budget that aims to cut $880 billion in funding for Medicaid over the next 10 years.

The Economic Policy Institute found that these cuts to Medicaid could disproportionately impact Black and Hispanic Americans who are more likely to rely on Medicaid for healthcare coverage.

Do you have a story to share about being unable to afford your medical costs? Contact this reporter via email at [email protected].

• Rep. Alexandria Ocasio-Cortez introduced a bill that would cap credit card interest rates at 10%.
• The average annual percentage rate on credit balances has jumped to 21% in 2024 from 12% in 2003.
• More people are falling behind on monthly payments, showing signs of consumer stress.

Americans' credit card debt is at an all-time high. Soaring interest rates on credit cards coupled with other economic factors could make the situation worse.

In March, Representatives Alexandria Ocasio-Cortez and Anna Paulina Luna introduced a bipartisan House bill that aims to cap annual credit card interest rates at 10% a year.

"Credit cards with high interest rates regularly trap working people in endless cycles of debt," Ocasio-Cortez said in a press statement. "At a time when families are struggling to make ends meet, we cannot allow big banks to shake down our communities for profit."

The average annual percentage rate on credit balances has nearly doubled in the past decade to 21% in 2024 from 12% in 2003, per the Consumer Financial Protection Bureau. Credit card interest rates can fluctuate with an individual's credit score, but they are ultimately determined by market conditions.

As credit card interest rates have risen, so has the amount of consumer debt, as well as delinquencies on payments.

The total amount of credit card debt has ballooned to $1.2 trillion in Q4 of 2024 up from $720 billion in the same quarter of 2004, per the Federal Reserve Bank of New York. More people are falling behind on their monthly payments and the number of active credit card users only making the minimum payment on their monthly credit card statement has reached a record high, "showing signs of consumer stress," per the Federal Reserve Bank of Philadelphia's 2024 Q3 report.

President Donald Trump ran on campaign promises last year that he would temporarily cap credit card interest rates at 10%, to allow Americans to "catch up" on their balances, but he hasn't taken executive action or spoken about interest rate caps since entering office.

The bill is now referred to the House Committee on Financial Services, but has yet to be put on the calendar for a vote in the House of Representatives.

Ocasio-Cortez and Luna did not respond to requests for comment.

Do you have a story to share about being delinquent on a student loan or credit card payment? Contact this reporter via email at [email protected].

• Switching jobs led to higher pay raises after the pandemic.
• But federal data shows that the trend is in decline, with job switchers seeing falling pay growth.
• A cooling of the Great Resignation and fewer job offers are weakening workers' bargaining power.

Switching jobs was once a surefire way to get a big raise, but federal data suggest that's no longer the case.

According to the Atlanta Fed's Wage Growth Tracker, the median pay increase for job switchers fell to 4.2% in February, a sharp decline from 7.3% in early 2023.

Job stayers also saw wage growth slow, though to a lesser extent, declining from 5.8% to 4.4% over the same period.

This marks a stark shift from the labor market immediately post-pandemic, when job switchers consistently outpaced job stayers in pay gains. At their peak in July 2022, job switchers earned as much as 2.6% more than those who stayed put.

The end of the Great Resignation

Labor market analysts attribute the wage downturn to the cooling of the Great Resignation — the post-pandemic wave of record job quits and a labor shortage that drove up wages.

In 2021 alone, about 47 million Americans left their jobs, often securing higher pay elsewhere.

"Job switchers enjoyed a significant wage premium from late 2021 through early 2023 because employers were facing significant labor shortages after the pandemic and needed to offer significant wage increases to lure workers away from their prior positions," Nancy Vanden Houten, Oxford Economics' US Lead Economist, told Business Insider.

Now, however, slowing inflation, fewer job offers, and reduced competition for workers have weakened employees' bargaining power.

"Labor markets are still fairly strong, but nowhere near as tight as in 2022," Harry Holzer, a nonresident senior fellow in economic studies at Brookings and a public policy professor at Georgetown University, told BI.

"The really large gains in 2022 were occurring during the Great Resignation when the labor market was extremely tight, and workers demanded higher pay," he said. But now, "quits have gone way down."

This shift is making many workers reluctant to leave their current jobs.

"Certainly, in DC, there's this feeling that you're better off staying put in a way right now with all the layoffs," Elise Gould, a senior economist at the Economic Policy Institute, told BI.

"There's some economic insecurity that would be leading to this kind of phenomenon where people might be just staying still more," she said.

The wage squeeze in tech

Tech professionals, in particular, are feeling the effect of a cooling job market.

Jim Harrington, a principal software engineer at Cart.com who earns over $200,000 a year, told BI that during his 12-month job search, he has seen wages on job listings top out at $180,000.

"It's not a bad wage, but it is not the levels that we were accustomed to seeing over the last few years," he said.

According to Levels.fyi data, wages for software engineers, product designers, and technical program managers fell 1-2% in the second half of 2024.

Some professionals have even left the industry altogether.

Ryan Essenburg, who said he worked for 21 years as a Business Development Director at SimulTrans, a translation and localization services company in Mountain View, California, told BI he saw his position eliminated in April 2024.

After what he termed an "existential" job search and lower salary offers, "I decided to put my search on indefinite hold," he said, adding: "I am coaching tennis now and very happy."

Others have had to take significant pay cuts.

Raymond Traylor, who was laid off as PairTree's Chief Technology Officer in December 2023, went from a $180,000 salary to $36,000 as a computer systems analyst at VSorts, a SaaS platform, from December 2023 to March 2023, and has been earning between $3,000 and $5,000 a month as Negotiate Fairly's CTO and cofounder since March 2024.

"It's been a multi-year downturn, but hopefully it's not too much longer, and I hope that we don't go back to just a boom-and-bust bubble sort of economy," he told BI, adding he hopes it's just an "in-between weird time."

What's next for wage growth?

While job stayers saw slightly higher pay raises than job switchers in February, their long-term prospects aren't much better.

Workplace advisory firm Willis Towers Watson projects that US employees who stay in their roles will see an average 3.7% salary increase in 2025, down from 3.8% in 2024 and 4.6% in 2023, though still above the pre-pandemic norm of 3%.

Some economists warn this isn't just a temporary dip.

"The amount of uncertainty facing businesses today is leading to further reluctance to hire," Thomas A. Kochanco, co-director of the MIT Institute for Work and Employment Research, told BI.

"If anything, the labor market will get weaker in the months ahead."

"I hope we are not in for a recession," he added. "But if that does occur, expect the bargaining power of both job hoppers and incumbents to continue to decline."

• Black federal workers have historically benefited from stability, good benefits, and less discrimination.
• Trump's job cuts and DEI scrutiny, helmed by Elon Musk's DOGE office, threaten that security.
• Five former and current Black federal workers say the upheaval has hurt their finances and optimism for the future.

When BreAntra Jackson started working at the Internal Revenue Service last October, she was excited to have secured a coveted position in the federal government.

"Working at the IRS was one of the best jobs I've ever had," said the 24-year-old IRS administrator. The full-time, hybrid work schedule allowed the single mother to find stability and afford day care.

She had planned to build a lifelong career in civil service, like her predecessor, who she said had processed requests for IRS agents for three decades before retiring.

Those aspirations were interrupted on February 20 when Jackson became one of roughly 25,000 probationary workers fired by the Trump administration.

While a federal judge in mid-March deemed the firings illegal and ordered the Trump administration to reinstate workers, including Jackson, the financial uncertainty over several weeks took a toll on her savings. While she and thousands of her colleagues have returned on paid administrative leave, it may not last long. The White House's DOGE office has ordered federal agencies to devise plans to reduce staff in the coming months through less legally dubious means.

Federal jobs, with their stability and comparatively good benefits, were once a pathway to the American dream for many workers, especially for Black professionals like Jackson. Black Americans make up nearly 1 in 5 federal workers, compared to their 14% share of the US population.

Now, DOGE's hiring freezes and slashing of government jobs threaten that legacy of security for Black Americans in the federal workforce. Plus, the administration's heightened focus on DEI could make the path forward more difficult for Black workers.

"Protecting the civil rights and expanding opportunities for all Americans is a key priority of the Trump Administration," Harrison Fields, White House principal deputy press secretary, wrote in an email to BI when asked about federal jobs providing a stable path to the middle class for Black Americans, which is why Trump "took decisive actions to terminate unlawful DEI preferences in the federal government."

"I was laid off and just thrown to the wolves," Jackson said. In February, Jackson was living off the money she had set aside for a down payment on a future home. She told BI it was "the first time that I've ever not had a job, not had income coming in to cover my bills," since she was 16 years old.

A pathway to middle-class security is now uncertain

Some former federal workers BI spoke with decided to take matters into their own hands, rather than subject themselves to the career rollercoaster their peers have endured in recent months.

Alphonso McCree Jr., a veteran and former visual information specialist in Veterans Affairs, started working on Capitol Hill last April. In September, he bought a house in Charles County, Maryland, where he lives with his wife and two young children. He left his job in January when he saw the budget cuts on the horizon.

"Nobody can tell what they're going to do next. It's just really unpredictable," McCree said of the Trump administration.

As the main breadwinner, McCree decided it was riskier to stay at his job than to pursue his freelance videographer business full-time.

"I needed to do what I needed to do to separate myself from their decision-making that was affecting me and my life and my family," he said.

McCree grew up in Prince George's County, Maryland, just outside Washington, DC. His parents worked for the federal government, and he recalls having his hair cut by a barber in the basement of their government building. He said almost everyone in his family spent their careers in civil service.

"I've never seen Black people really thriving anywhere like we do in Maryland," said the 30-year-old, adding that while "departments are being abolished and blown up, I don't know what's going to happen."

It's too soon to have data on the demographics of this year's federal government attrition; however, the Office of Personnel Management provided data on the ethnic and racial background of federal workers as of last September. This data seems to have been removed from its website in the last month; OPM did not respond to comment when BI inquired.

Joseph Dean, a research specialist who studies race and economics at the National Community Reinvestment Coalition, said it's clear that historically, federal jobs have played a large role in building Black wealth in the DC area — particularly in McCree's hometown of Prince George's County.

In 1970, white residents made up 84% of Prince George's County, while Black people were only 15%. In three decades, the Black population had grown to 64%. Today, Prince George's County is still known as one of the wealthiest, Black-majority counties in the nation.

"The opportunities from the federal government drew Black people, especially throughout the country, to DC to work," said Dean. Today, nearly 18% of all wages earned in Prince George's County come from federal jobs.

Black employment in the public sector dates back to the Reconstruction Era when the United States Postal Service offered some of the first jobs to formerly enslaved people, said Eric Yellin, a history professor at the University of Richmond.

In his book, "Racism in the Nation's Service," Yellin detailed how Black employment ebbed and flowed under various administrations.

"It's never certain in American society that African Americans or minorities in general will be given a fair shot," said Yellin. "It was a 50-year struggle." The civil rights movement led to the fastest progress in closing the racial wealth gap.

It was in the 1960s, when the federal government got serious about preventing discrimination in the workplace, that Black professionals began to flourish — particularly in the federal government.

Black employees face larger wage gaps in the private sector compared to their peers in the public sector due to standardized pay across identical titles and roles in the federal workforce.

"The federal government is the fairest employer in the country as a whole," said Yellin of the standardized merit tests and safeguards in federal jobs meant to prevent bias.

Ashley Shannon chose a career in public service for that reason. In the fall of 2023, Shannon was accepted into the Attorney General's Honors Program — a prestigious program that admits only a handful of entry-level attorneys each year. When she started her position at the Federal Bureau of Prisons, she felt inspired seeing other Black lawyers in leadership who had successfully matriculated to general counsel and deputy attorneys.

"In private practice, there was not as much mobility, or expectation of mobility for people in our community," said Shannon. "Black women, specifically when you look at private firms or large firms, make up less than 1% of those in partnership." In 2020, the US Equal Employment Opportunity Commission found that Black women made up 11.7% of the civilian federal workforce, nearly twice their participation in the general labor market.

Shannon moved to DC with the expectation that she would build a life-long career in civil service. She was even looking to purchase a home in the area by the end of 2025.

But seeing the layoffs for probationary employees like herself around the corner, Shannon decided to hand in a resignation letter.

"I'm going to have to move back in with my parents at 28 years old, almost 29, and that is a very defeating feeling as a very new attorney," said Shannon. "I feel like I just got done building a life out here."

Former federal workers are facing a tough job market and more scrutiny on diverse hiring

Not everyone has a safety net in the event of a job loss, and federal workers who leave their jobs are entering a tough hiring market.

Shaye, a contractor for Veterans Affairs, has spent her entire career working in the federal government from the time she was 19 years old to her early 30s. As a current federal employee fearing retaliation, she asked to only be identified by her middle name.

"Many of my co-workers have said, 'We don't even have a backup plan,'" said Shaye. "A lot of us have always worked for the government, and we don't know anything else."

Andrea Slater, director of UCLA's Center for the Advancement of Racial Equity at Work, said that those who've dedicated a large part of their careers to public service face bigger challenges to finding work again after these layoffs.

"A lot of these jobs are very focused and so if they've been in these jobs for decades, there's a high probability that their skill set might not match up with a lot of positions and needs in the private sector," said Slater.

Then there's the added layer that Black employees and other people of color may have been singled out as part of the scrutiny leveled against diversity, equity, and inclusion programs, said Yellin. This moment rings eerily of the past that he's studied.

Entering office, Trump signed an executive order "ending radical and wasteful government DEI programs and preferencing."

"That was the argument that segregationists made, that when you found someone Black in a position of power or participating as equals, something had gone wrong," Yellin said. He compared the executive order to the actions of President Woodrow Wilson who purged Black workers in the federal government in the early 20th century. "There's something similar in the attacks on DEI."

On Wednesday, a group of federal employees across government agencies, represented by the American Civil Liberties Union, filed a class action lawsuit against the White House, claiming they were unlawfully fired for their participation in DEI initiatives and targeted on the basis of their race in violation of their civil rights.

"Every man and woman in this great country should have the opportunity to go as far as their hard work, individual initiative, and competence can take them. In America, grit, excellence, and perseverance are our strengths," the White House's Fields wrote.

All the upheaval has taken a heavy mental toll on Shaye, who loves her work procuring supplies for hospitals that serve veterans. She's frustrated by the insinuation that she was only hired because of her race.

"To be reduced down to that is infuriating and honestly disrespectful to the many hardworking Black federal employees," said Shaye. "I got my job because I showed that I had potential, I showed that I had drive, I showed that I wanted to be there and I was willing to learn."

The stability of Shaye's job in the federal government provided her with the opportunity to pursue the American dream: get married and buy her dream home.

"I have been able to essentially break out of the cycle of struggle," said Shaye, who was raised by a single mother who had to work several jobs to make ends meet.

Now, with the uncertainty around her employment, she feels a cloud of anxiety hanging over her head. She's been trying to alleviate her stress by blasting Lady Gaga while swinging a kettlebell at the gym and journaling about her feelings.

"I am a plan-for-the-worst type of person," said Shaye. She's cut down spending, canceling subscriptions, and is already looking for an exit plan if she is laid off. "I am operating like I am going to lose my job within the next couple of months, if not sooner."

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• Women-owned businesses are growing faster than men-owned ones, says a recent Wells Fargo report.
• Women face barriers in raising capital but benefit from digital platforms and education.
• Black women-owned firms grew rapidly after the BLM movement in 2020, but growth has since slowed.

Women entrepreneurs are outpacing men, according to Wells Fargo's latest report on the impact of women-owned businesses.

Although corporate America is still predominantly led by men, the number of women-owned businesses has grown faster than those owned by men in the past five years. Small businesses helmed by women have also seen faster employment and revenue growth over that period, based on Wells Fargo's analysis of Census data.

Why women are starting their own businesses

"Women see a real opportunity in entrepreneurship to do things on their own," said Geri Stengel, the president of Ventureneer, a market research firm that co-published the report with Wells Fargo. "They've hit the wall in corporate America."

While there are still significant barriers for women raising the capital needed to start a business, the report notes that solopreneurs have risen with the advent of digital platforms that democratize business opportunities. Women, in particular, have continued to flourish after federal stimulus packages aimed at supporting small businesses during the pandemic.

Education is a factor as well, Stengel added. Currently women are attending and graduating from college at higher rates than men.

Despite the strong recent growth in women's entrepreneurship, they're still underrepresented at the top of the corporate ladder. Women-owned companies only make up 2.4% of businesses that earn more than $20 million a year in revenue compared to men-owned businesses that make up 22.5%, according to the Wells Fargo study. The remaining balance represents companies owned by multiple people, or large corporations.

Overall the gender gap between the revenue earned by all women-owned businesses is gradually closing and if the current trend continues, the study projects that it would take 120 years before women would reach equal parity with men.

Where gaps and disparities persist

The study goes on to highlight that Black women-owned employer firms have experienced a growth rate three times all women-owned businesses — in part supported by diversity programs and movements like Buy Black, according to their findings.

"There was a concerted effort to support Black/African American businesses and communities after the killing of George Floyd," read the report's key statistics on Black women. In 2020, activists affiliated with the Black Lives Matter movement called on consumers to close the revenue gap for Black entrepreneurs by spending their dollars at Black-owned businesses. "The growth of Black/African American women-owned employers surged between 2019 and 2024, at 51.2%, compared to all women, at 17.2%."

But the report also noted that the growth for Black and Latino employers has cooled, with more recent political changes potentially adding to that slowdown.

"That wave has diminished to a large extent," Stengel said of the support for Black-owned businesses that exploded during the pandemic. "And we're not going to really see it right now because of the DEI executive orders."

Trump's administration has called diversity, equity, and inclusion programs, prioritizing opportunities for underrepresented groups, "radical and wasteful." Businesses like Target and Amazon have also pulled back on DEI initiatives since the presidential election.

This month, the US Small Business Administration announced agency-wide job cuts and priority shifts under the Trump administration.

"The agency has veered off track — doubling in size and turning into a sprawling leviathan plagued by mission creep, financial mismanagement, and waste," said SBA Administrator Kelly Loeffler in a press release. Several grants are being terminated including the Community Navigator Pilot Program that awarded funding to small businesses in underserved areas.

"Just like the small business owners we support, we must do more with less," Loeffler continued.

• AARP reports a surge in calls from retirees concerned about Social Security benefits.
• Seniors are worried about the Trump administration's budget cuts at the Social Security Administration.
• Office closures and staffing cuts could strain the agency as baby boomers retire and demand rises.

Anxious retirees have been phoning AARP in droves about their Social Security benefits.

A spokesperson said that since February 1, the nonprofit has received roughly 2,000 calls a week on the issue, and "by far the number one" concern is about disruptions to checks.

"They're really struggling to get by and Social Security is their lifeline," Bill Sweeney, AARP senior vice president, said of older Americans who rely on Social Security benefits to make ends meet. "It's something they paid into their entire working lives from their very first paycheck until their very last."

The spike in calls is double AARP's usual volume and is happening in response to the Trump administration's workforce reductions within the Social Security Administration. Though Trump has promised his administration won't touch benefits, retirees have reason to be concerned about the service they'll receive from the agency.

Last month, wait times for calling Social Security averaged around an hour and 44 minutes, and Social Security administrators warned that customer service is going to get worse.

For example, one change requires beneficiaries to present identification in person rather than online to prevent fraud. However, the agency also announced it would be closing some field offices, a move that could present further challenges to seniors and disabled Americans who don't have access to transportation or live in remote areas.

Business Insider previously spoke to Social Security employees who said the agency was already overwhelmed before the White House's DOGE office came on the scene. Staffing has reached its lowest levels in 50 years — and demand for the agency's services is only growing as a wave of baby boomers hit retirement age.

"There's about 10,000 people turning 65 every single day in this country," Sweeney told BI. "And there's more every day than the day before. And yet the staff at Social Security is going down."

Nearly 73 million Americans receive Social Security benefits. Around 40% of older Americans rely solely on monthly checks for their retirement income, according to the National Institute for Retirement Security. The number of Americans over the age of 65 is projected to steadily increase to 80 million in 2040.

Judith Murray, 64, is one of them. Murray previously told BI that she lives on $1,311 a month in Social Security and a $1,174 monthly SNAP allotment in central Illinois. It's barely enough to cover essentials in a seven-person household, which includes some of her children and grandchildren and her fiancé, who recently lost his job.

Any delays in Social Security payment would jeopardize Murray's ability to pay for housing and groceries — and she is already already behind on bills and doesn't have any savings. Murray said that, due to a disability, she's been relying on Social Security for several decades.

Whether it's a supplement to retirement savings or a sole source of income, Social Security is one of the most popular federal programs with 87% of Americans saying it must remain a priority even with budget deficits.

Frank Bisignano, a seasoned finance executive, fielded questions from Democrats during Tuesday's Senate Finance Committee hearing as Trump's pick to head the Social Security Administration.

Bisignano vowed to continue operating the agency to serve the American people "to ensure that every beneficiary receives their payments on time, that disability claims are processed in the manner they should be."

When asked if he had plans to denationalize the service, he said no.

"I've never thought about privatizing. It's not a word that anybody's ever talked to me about," the Wall Street veteran continued. "I don't see this institution as anything other than a government agency that gets run for the benefit of the American public."

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