Press release
Businesses and employees report rising concerns about a potential recession according to Principal® survey
Gen Z, Millennials say rising recession fears are impacting their mental health DES MOINES, Iowa--(BUSINESS WIRE)-- While most U.S. small and midsized
About this update from Principal Financial Group Inc
[{"type":"text","content":"\nGen Z, Millennials say rising recession fears are impacting their mental health\n\n DES MOINES, Iowa--(BUSINESS WIRE)--\nWhile most U.S. small and midsized businesses and their employees believe a recession is likely in 2023, business owners are opting to raise prices and reduce operating expenses before cutting salaries or benefits, according to the latest Principal Well-Being IndexSM (WBI) study by Principal Financial Group®.\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221206005015/en/Third wave of insights for 2022 (Graphic: Business Wire)\nDespite this dip in economic confidence, the study found more businesses are currently growing compared to this time last year (61% vs. 51%). More than half (53%) of small businesses1 also reported growth, the highest in 2022 and up from 46% in July. More than 70% of large businesses2 reported growth in the most recent October survey.\n\nBusinesses focus on maintaining benefits and wages\n\nHowever, businesses and employees remain uneasy about economic pressures. Seventy percent of employers and 74% of employees believe it’s somewhat or very likely a recession will happen in the next six months; this is up from 65% of employers in July.\n\nTo address a potential downturn, businesses are choosing to reduce operational expenses or raise prices on goods and services over reducing employee salaries and benefits. Sixty four percent of small businesses said they will not reduce salaries compared to 49% of large businesses. Similarly, 57% of small businesses said they will not reduce benefits to adapt for a recession compared to 45% of large operations. Nearly two-thirds (63%) of employees surveyed reported wage increases within the past year.\n\n“If there’s one constant in our research of the small and midsize business community, it’s that they remain committed to their employees. Earlier this year, businesses said they weren’t going to impact benefits or wages, and that sentiment is holding,” said Amy Friedrich, president of U.S. Insurance Solutions at Principal®. “While the economic outlook is murky, business owners understand employees are their most valuable asset and they’re continuing to support them with retirement and protection solutions, as well as financial wellness programs.”\n\nEmployee uptake of financial wellness ...