One in eight US households saw drop in income last month

The increase — to 11.8% last month from 10.7% in August — was driven primarily by high- and middle-income households and the West region, according to a survey of the US labor market from data intelligence company Morning Consult. Among adults with an annual income of $100,000 or more, close to 20% say they expect their incomes to fall in the next four weeks.

The poll also pointed to a slowdown in business activity, with the share of workers who reported working over 35 hours falling to 46.7% — the lowest level since the spring of 2021 and down more than 12 percentage points from September 2022. The most cited reason by respondents was soft business conditions.

Still, American workers remain confident about their ability to get raises. The data show a strong uptrend in workers’ perceptions of their own bargaining power, with more believing that their employer would match or raise their pay if they were to get an external offer.

More workers are also testing the labor market. Job search activity among prime-age adults from August to September rose to the highest level since a least September 2020. Higher shares of workers actively applying for new positions is generally viewed as a sign of labor market strength.

Union workers in particular are feeling more emboldened. The Morning Consult survey found union members were almost twice as likely to have asked for a raise this year, compared to all employed adults. They were also much more likely to have asked for a promotion, bonus or additional paid vacation days in the past 12 months.

The data on lost pay and income is from a weekly Morning Consult survey of about 20,000 US adults. The data on hours worked per week and on labor market confidence is from a survey of 1,224 employed US adults conducted in the week ending September 13.