The crisis of affordability reverberating across the U.S. is attributed to a mélange of factors including rising prices of gas, food, healthcare, insurance, childcare, eldercare, housing and more due to tariffs, conflict in the Middle East and other influences.

This new economic reality affects everyone on the career ladder from early career to the top—where C-suite management must be empathetic and compassionate in dealing with the struggles of so many in their organizations.

“The new economic reality affects everyone on the career ladder from early career to the top—where C-suite management must be empathetic and compassionate. @takeleadwomen @economy @affordability @struggles”

The gender pay gap notwithstanding, leaders are needing to listen to and address issues from their teams of employees, as well as tending to the costs of doing business that are unpredictable as well.

Yes, a simple raise will help, but many more solutions need to be in place beyond a paycheck adjustment. That is because the economic landscape in the U.S. and globally is shifting week to week and month to month.

“Achieving a fair and equal share of leadership roles for women will result in a more just and healthy world, with greater economic prosperity,” says Gloria Feldt, co-founder and CEO of Take The Lead.

That means leadership in organizations need to pay attention to the financial strains of team members and employees, as well as how company finances affect individuals. The next step after acknowledging and understanding the crises, is to install solutions.

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According to the latest report from U.S. Bank Wealth Management, the U.S. labor market unemployment rate is 4.3%, with wage growth still slightly above inflation, but hiring demand down.

“Leadership needs to know the next step after acknowledging and understanding the crises, is to install solutions. @economy #leadership #solutions #paygap”

There was a loss last month alone of 15,000 jobs in financial services, only 2,000 new jobs in professional and business services, and a loss of 3,000 jobs in the information sector, Deloitte reports.

“Layoffs remain contained, with 6.9 million job openings, 202,000 initial jobless claims, and March layoff announcements concentrated in select industries,” the report shows. There is job growth in construction, transportation, manufacturing, healthcare, and lesirre and hospitality.

What is essential now is for leaders of large corporations and entities as well as small businesses to address those realities in order to increase retention and productivity as well as avoiding people from leaving altogether. And research and actions have proven the burden is more heavy on women due to the gender pay gap as well as the care gap.

This is different than the pandemic She-cession in 2021 and beyond because these are new factors geopolitically. This year has heralded a new economic environment to not just withstand but to plan for and insulate from the financial strains now.

“Power Up Conference 2026 @takeleadwomen will offer solutions on how to lead in a volatile economy. https://www.taketheleadwomen.com/thepowerupconference ”

Benefit News reports, “A 2025 survey by Morgan Stanley at Work found that 84% of overall workers — and 95% of Gen Z — think their employer should play a more active role in helping them manage financial challenges.”

“2025 survey @MorganStanley at Work: 84% of all workers — and 95% #GenZ — think employer should play a more active role in helping them manage financial challenges. #leadership #economy #finances”

Kate Winget, Morgan Stanley’s chief revenue officer says, “"With the macro conditions that everyone's seeing, there's always the question of what's around the corner. Making sure you are providing deeper-dive education of what benefits are available to employees in the financial space — even bringing in financial planning solutions [like] budget and savings tools, digital and on site — [can be a] lever for the future, but also the lever for now."

It is not just high gas prices facing everyone on the planet—particularly those who commute daily—but the Consumer Price Index shows “core goods and durable goods prices have both risen by 1.5% during 2025 through January, both well above prior-year comparisons. Implied passthrough of tariffs to imported consumer goods prices ranges from roughly 46–86% for core goods and 51–115% for durables,” according to The Budget Lab from Yale University.

According to Deloitte, the PMI for the US services industry fell from 51.7 in February to 49.8 in March—the first reading suggesting declining activity since January 2023. S&P Global commented that “the PMI survey data show the US economy buckling under the strain of rising prices and intensifying uncertainty, as the war in the Middle East exacerbates existing concerns regarding other policy decisions in recent months, notably with respect to tariffs. The downturn reported in March was among the steepest recorded since data were first available in 2009.”

For the self-employed, “in March, there was a sharp decline in labor-force participation. Overall, the household survey indicates job-market weakness.”

The concern is not shared evenly over generations, as “the survey found that the most optimistic cohort tended to be consumers under the age of 35 while the least optimistic tended to be those above 55. Everyone else was less optimistic,” Deloitte reports.

For company and corporate leaders, owners and managers, there is a hesitancy to spend money, Deloitte shows. This suggests “a sharp pullback in business spending in 2027 as companies reassess potential demand for related products. Real business investment is expected to decline by 3.2% in 2027 and another 0.7% in 2028.”

“Business spending will be down in 2027 with real business investment expected to decline by 3.2% in 2027 and another 0.7% in 2028 @Deloitte #decline #spending ”

Concentrating more on specific causes of affordability, Stanford University reports, “We project gas prices will peak at over $4.25 per gallon in May, and that the average household will pay $857 more for gasoline over the rest of the year. The broader takeaway is that even once the Strait reopens and crude prices begin to normalize, consumers are likely to be paying more at the pump for weeks or months longer — the rockets go up fast, but the feathers come down slowly.”

“One thing is sure, women need to pay attention to what’s in their paychecks and advocate for both policies and individual fairness. Because this issue isn’t only about what’s in your current paycheck,” says Feldt.

“Gloria Feldt, co-founder, president @takeleadwomen: “One thing is sure, women need to pay attention to what’s in their paychecks and advocate for both policies and individual fairness.” #gendergap #fairness ”

Financial wellness is addressed with strategies n Power Up Conference 2026

The solutions lie in leadership not only being cognizant of these stressors on everyone, but offering concrete help. Employee Benefit News reports, “Offerings such as tax guidance, company equity options and savings tools can be appealing to everyone in the workforce, while child care and eldercare benefits for working caregivers and student loan repayment options for borrowers can be more targeted.”

“Solutions include tax guidance, company equity options, savings tools, child care and eldercare benefits, student loan repayment options. commuter stipends and cash bonuses. #leadership #incentives #economy ”

Winget also tells EBN, “When employees are stressed about money, they may start to look for bigger paychecks elsewhere; enhanced communication that promotes benefits understanding can make the difference in them choosing to stay.”

Another help is offering free unlimited transit passes for staff, exploring carpool options and offering cash incentives for that, and also stipends for commuters. One=time cash bonuses are an option as well. Providing free financial wellness training in-house or online is also a good faith effort.

According to a global financial wellbeing report, “employee financial empowerment through financial education provided by employers can improve employee engagement, retention and a company’s bottom line.”

During this tenuous time period, Vistra reports, “Alongside promoting employee financial literacy and wellbeing, implementing robust communications policies and practices is a practical, cost-efficient way for an employer to support employees during periods of rising inflation.”

The worst possible position a leader can take now is to be unresponsive to any employee’s financial concerns, and to model the pay gap many endure from the C-suite. What needs to happen is transparency, genuine effort to assist and solutions-based policies.

The good news, according to People Management, is that, “Organizations headed by a female chief executive have smaller gender pay gaps than those led by men. The median hourly gender pay gap at companies with a woman as CEO was 4.3 percentage points lower on average than those headed by men, according to analysis by gender equality research organisation Global 50/50.”

“Organizations w female #CEO have smaller #genderpaygaps than those led by men. Median hourly gender pay gap 4.3 percentage points lower on average: @Global5050”

The study shows, “Analysis of pay gap data at 44 health organizations found that women-led companies were forecast to close the gender pay gap four years ahead of those headed by men. Those that had had a female CEO for the past eight years were predicted to achieve pay parity nine years earlier. “

International Fresh Produce Association CEO Cathy Burns tells And Now Your Know,

“Our industry feeds the world. That mission does not pause because input costs are rising. But sustaining it requires that the costs and risks are shared fairly, that policymakers understand what is at stake, and that growers have the confidence to keep investing in the crops that communities rely on us.”

Considering the benefits package offered to employees, Biz Journals reports, “The data in the 2026 NFP U.S. Benefits Trend Report also shows that pharmacy costs are one of many factors in employee retention. Wellbeing strategy is growing as infrastructure, not just a voluntary benefit.”

Additionally, “Burnout and mental stress are not just job related — people come to work with heavy lifestyle issues weighing on their minds, like placing mom in a senior care facility or finding a scholarship for their senior in high school,” Biz Journals reports.

For leaders, “Managing these mounting costs increasingly requires proactive – and sometimes disruptive – approaches, ranging from plan design changes to alternative funding strategies and more intentional pharmacy and population health management. The focus is shifting from short-term savings alone to sustainable, long-term strategies that balance cost control with employee wellbeing and talent retention.”

“Managing mounting costs increasingly requires proactive – and sometimes disruptive – approaches, ranging from plan design changes to alternative funding strategies.” @BizJournals reports. ”

High on the list of fiscal concerns for employees and employers is the high cost of healthcare. According to Healthcare & Protection, “Medical inflation continues to reshape employer health strategies in 2026. Aon forecasts a 9.8% global average increase for employer medical plans this year, while WTW projects roughly 10.3% worldwide with notable regional variation.”

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“Medical inflation is not a single problem to solve once. It is a system challenge that must be addressed from multiple angles,” Janette Hiscock, CEO, UnitedHealthcare Global, tells Healthcare & Protection.

“Organizations that are prepared to adapt their benefit design, promote the use of telemedicine and wellbeing tools and resources, embrace lifestyle medicine, and adopt data-driven care management programs are the ones seeing steadier trend lines and healthier teams as a result.” Hiscock adds, ”Prevention and mental health should be embedded into every member journey through digital-first access supported by strong local provider networks.”

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About the Author

Michele Weldon is editorial director of Take The Lead, an award-winning author, journalist, emerita faculty in journalism at Northwestern University and a senior leader with The OpEd Project. @micheleweldon www.micheleweldon.com

More Than A Raise: How & Why Leaders Must Address Tough Economic Realities Now For Employees

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