Low jobless rate masks struggles for many

WASHINGTON — Despite an ultralow 3.9 percent unemployment rate, about one- third of U. S. adults faced financial insecurity last year and often struggled to pay unexpected expenses, a Federal Reserve survey found.

For 3 in 10 adults, their monthly incomes fluctuated — often because their work schedules changed at short notice — and that caused about 1 in 10 Americans to miss some bill payments, according to the report released Tuesday. Forty percent of adults would have had to borrow money or sell something to pay an emergency expense of just $ 400.

The data suggests that financial security evades even many of those who are working. About one- third of U. S. adults relied on “gig” work or side jobs last year to bolster their incomes. Fewer than 4 of 10 Americans think their retirement savings are sufficient, and a quarter have none at all, the Fed survey found.

At the same time, the survey finds the improving economy is benefiting more Americans, at all education and income levels. Nearly three- quarters of U. S. adults say they are either “living comfortably” or “doing OK” financially, up from 71 percent in 2016 and 10 points higher than when the annual survey began, in 2013.

Just 7 percent of adults said it was difficult to get by financially last year. That’s down by about half from 2013.

And more Americans are asking for or receiving raises, a sign that the low unemployment rate is giving workers more bargaining power. Just over half — 52 percent — of adults said they received a raise last year, up from 46 percent in 2016. The increase was even larger for those with less education, likely reflecting widespread increases in state minimum wage levels. Nearly half of those with a high school diploma or less got a raise, up from just 38 percent in 2016.

Still, separate government data shows that the percentage of people getting raises remains below where it was before the 2008- 2009 recession.