Happy Sweetest Day!

To all of our awesome readers, especially those from Florida, Arizona, and other Midwestern spots in the U.S. that celebrate it, have an amazing day full of kindness, charitable deeds, and spreading some love! 😊

Today, we'll discuss why some Americans feel stuck in their lives.

All this, and more, in just 4 minutes to read.

— Weronika

QUOTE OF THE DAY

“How many people are trapped in their everyday habits: part numb, part frightened, part indifferent?

To have a better life, we must keep choosing how we are living.”

— Albert Einstein

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READER RESPONSE

Last week, we asked readers: What's your favorite social media app that you can't live without, and why?

Here are a few responses:

• "Youtube, it has everything - entertainment, educational, news, movies.” — Jay, Auburn Hills, MI
  

• "Instagram, because you'll find all kinds of content and you can follow what you want.” — Hugo, Monção, Portugal
  

• "YouTube. It’s educational. Search for what you want to learn about without all the noise.” — Greg, Las Vegas, NV
  

• "If you consider Google News as a social media app, then this is my go-to app to get all the information, knowledge, discovering new things & entertainment.” — Kanhaiya Jaju, Bengaluru, India
  

• “BeReal because I can just add my close friends, and it's nice to have a social media app where you can be 100% authentic.” —Serena, Manchester, UK

Answer this week’s question: What's the one thing you do that helps you stay motivated to chase your goals and avoid stagnation?

WHY AMERICANS FEEL STUCK

Slipping away

Aspirations to secure better jobs, larger houses, and even more upscale gyms are back in vogue but often yield worse long-term financial outcomes.

So what’s happening?

The pandemic’s combination of relatively high incomes, benefits at work, low interest rates, and discounted services (like gym memberships) obtained before and during the pandemic is binding people to "golden handcuffs."

As a result, many find themselves feeling comfortable but trapped in their routine.

Yet, economists argue that the ongoing quest for fresh and improved opportunities indicates a strong economy.

In recent years, businesses have offered higher wages to attract talent, and workers flush with cash have played a part in increasing the prices of homes, cars, and other commodities.

With the Federal Reserve trying to tackle inflation by raising interest rates, many folks find it challenging to afford things, so they're hanging onto what they already have, even when it means sticking to a dead-end job.

That reality makes many Americans feel like their hopes for a better life are slipping away, making them more miserable than ever in fifty years.

Dreaming of a change

Homeowners who want to move to a better house stay where they are. They don't want to give up their super-low mortgage rates that are below 3%, which might not come back anytime soon.

But with higher interest rates today, they can't afford more expensive houses, so they're stuck in their current homes. Unsurprisingly, home sales are facing the most significant decline in over a decade.

Real estate prices remain near record highs, causing frustration among countless prospective buyers who perceive themselves as being priced out of the housing market unless they give up a bathroom or a dining room.

Consequently, home builders are actively seeking methods to enhance the affordability of their offers and downsize the buildings in order to expand their customer base.

Since 2018, the average size of newly constructed homes in the U.S. has decreased by 10% to 2,420 square feet. In 2022, there was a decline in the construction of new single-family homes, but there was a 9.5% increase in the construction of homes with fewer than three bedrooms, as reported by Zillow.

This suggests that while larger and more expensive homes may be the aspiration of many Americans, they have become increasingly out of reach, leading people to either maintain their current homes or set their sights on more modest options.

That trend goes beyond the housing market. The average age of cars and trucks in the U.S. is at an all-time high of 12.5 years. New car prices have increased significantly, and some models have shortages, making it difficult to trade in old cars.

As a result, many Americans are stuck in their old routines, living in the same homes, working the same jobs, and driving the same old cars.

No big moves

Speaking of jobs and careers, a vital part of the American identity…

The latest American workforce report conducted by Pew Research Center reveals that 51% of workers are highly satisfied with their jobs overall. However, nearly 70% express dissatisfaction with their earnings and prospects for promotion.

While many people are satisfied with their current career paths, plenty of others want a change but find it hard to leave their current situations, whether it's because of financial concerns or emotional attachment.

A few people who changed jobs a lot when it was hard to find workers got big pay raises or the chance to work from home. But now, fewer employers are offering that.

On top of that, with layoffs in the tech sector, some folks stay put because they don't see better opportunities elsewhere.

Switching jobs can mean earning more money, but the advantage of changing jobs for higher wages is the smallest in three years, according to the Federal Reserve Bank of Atlanta.

No purpose

A major issue for workers is the abundance of dead-end jobs that require long commutes to unfulfilling office spaces. These jobs involve mundane tasks that might have minimal impact on the company or society.

Workers often recognize the lack of purpose in their work, as they spend their days on unproductive tasks like paperwork, emails, and endless video calls, leaving them feeling unaccomplished.

According to the report, less than half (44%) are satisfied with their opportunities for training, developing new skills, and their employers’ benefits.

In many industries, finding jobs with higher salaries is also becoming harder. The average advertised salary for most roles is now lower than last year.

At the same time, first-time home buyers have fewer choices when current homeowners don’t want to move for a much higher mortgage. And people who want promotions at work may find it hard if colleagues above them don't leave.

For many, it's not that life is getting worse, but they sense they might be missing out on the American dream – the belief that there's still something better waiting for them in the future.

Dive deeper

Read this Pew Research Center report to learn more about the challenges facing American workers.

WHAT ELSE WE’RE INTO

📺 WATCH: Why so many U.S. companies are going bankrupt

🎧 LISTEN: Index investing simplified with Nicole Lapin

📖 READ: Why companies are reducing hiring of M.B.A.s this fall?

See you next time!

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