The percentage of employed individuals worried about being laid off has risen to 30%, while many are grappling with slow wage growth amid persistently high prices. The report also highlights that 14% of workers have taken on additional jobs to cope financially, with even high-income earners (making $150,000 or more) resorting to second jobs and dipping into their retirement savings.
How Does This Impact nri Indians?
For Non-Resident indians (NRIs) working in the U.S., these economic shifts could have significant implications.
1. Job Security Concerns
Many NRIs work in sectors like IT, finance, healthcare, and engineering, where layoffs have been frequent in recent years. The rising worry about job cuts means that indians on H-1B visas are particularly vulnerable. Losing a job in the U.S. can have severe consequences for visa holders, as they typically have a limited time to find another employer before being forced to leave the country.
2. Increased Financial Stress
With rising living costs and sluggish wage growth, NRIs may feel the pressure to take on side hustles or contract work, just like their American counterparts. Those supporting families in india through remittances could struggle to maintain the same level of financial assistance. If a significant number of NRIs reduce remittances, it could even impact the indian economy, as india receives one of the highest inflows of remittances globally.
3. Retirement Savings at Risk
Even high earners in the U.S. are tapping into their 401(k) or similar retirement savings, with 15.4% of those earning $150,000+ withdrawing funds early. NRIs, many of whom plan to return to india eventually, may find it difficult to accumulate wealth for a secure future if they are forced to use their retirement savings prematurely.
4. Impact on Investments and Real Estate
Many NRIs invest in indian real estate or stock markets as part of their long-term financial plans. If job instability and economic concerns persist, some may delay property purchases or even liquidate assets in india to maintain liquidity in the U.S. This could lead to fluctuations in NRI-driven real estate demand in India.
While the U.S. job market is showing signs of strain, NRIs can take proactive steps to safeguard their financial future. The key lies in strategic financial planning, diversification, and staying informed about job market trends. As economic uncertainty looms, having a well-prepared plan can make all the difference for NRIs navigating these challenges.
click and follow Indiaherald WhatsApp channel