McKinsey Report: Rising Costs Hamper American Economic Mobility
A McKinsey Institute for Economic Mobility report published Saturday, based on a survey of 30,000 people, finds rising living costs are the main obstacle to getting ahead for 60 percent of Americans.
Newsnibs Staff
- 2026-10-17
- Updated 11:58 PM UTC
Rising living costs are the main obstacle to getting ahead for 60 percent of Americans, according to a report the McKinsey Institute for Economic Mobility published on Saturday. The report is based on a survey of 30,000 people.
"By far, the rising cost of living was the number one thing people cited," said JP Julien, a partner at McKinsey. "60 percent of Americans said that's the thing getting in the way of them achieving their dreams."
Respondents named food and groceries as their biggest source of household financial strain. Nine in ten picked it, ranking it ahead of housing, fuel, healthcare and education.
The report finds that the strain reaches past the monthly budget. According to the authors, affordability pressures make it harder for people to plan ahead, go back to school, switch jobs or make long-term investments.
"The reality is that affordability pressures change how people imagine their future," said Diana Ellsworth, a senior partner at McKinsey.
Asked what they wanted most, two-thirds of respondents said greater financial security.
The survey also looked at the role of community ties. People with strong connections to their communities were twice as likely to say they have a say in their lives. They were three times as likely to say they feel in control of their future.
The report calls for action to bring down the cost of essential expenses. It says employers, educators and policymakers could support mobility through skills-based hiring, paid training and apprenticeships.
Photo by Franki Chamaki on Unsplash
