In this article, we will review ten of the most important figures that tell the story of changes in our financial lives in 2022. These figures reflect the rise in inflation rates, the rebalancing of home prices, the decline in the stock market, and the collapse of cryptocurrencies, as well as many challenges faced by the economy and personal finances throughout the year.
1.9
This is the number of job openings available for every unemployed person in March, highlighting how workers gained the upper hand after the economy reopened and recovered from the COVID-19 pandemic. The growing businesses amid a continuing labor shortage means high demand for workers to perform all the necessary jobs.
$0
The rising demand for workers led to wage increases at rates not seen in years. Unfortunately, the purchasing power of these increases had eroded by March. On average, workers’ wages were at the same level they were in March 2020 after adjusting for inflation.
$333
This is the largest amount refunded as an average income tax refund in April 2022 compared to the previous year. This increase in refund amounts reflects the impact of the expanded tax credits provided by the government the previous year, when the pandemic was raging and families needed support. The higher amounts of tax refunds – 11.5% more than those distributed in 2021 – highlighted the additional support people received from the government during the pandemic.
3.7 million
This is the number of children living in families that fell below the poverty line in January, following the end of monthly payments from the expanded child tax credit at the end of 2021. There was a 4.9-point increase in the child poverty rate in just one month. The expansion of the child tax credit transformed the program from a $2000 tax benefit for middle-class families per child during tax season into a $300 monthly payment per child to families, with a maximum of $3600. For the first time, this credit was also directed to families that did not earn enough to claim it, even those with no income at all. The additional cash was delivered directly to families, with few conditions attached, lifting millions of children out of poverty, according to research from the U.S. Census Bureau.
14 months
This is how long the “excess savings” from the pandemic are expected to last, as people are forced to dip into their savings due to inflation. Economists at Wells Fargo Securities estimated this figure in September, and this trend had begun to build over the year. With rising living costs and decreasing additional financial assistance from the government, many people are turning to their savings or accumulating credit card debt to maintain their spending habits.
$3.5 billion
This is the amount consumers are likely to save in bank fees each year after pressure from financial lawmakers pushed financial institutions to reduce overdraft fees, according to an analysis conducted by the Pew Charitable Trusts in February. As finances tighten, many bank customers may have been grateful for the reduction in hefty overdraft fees, which began at the end of 2021 and continued this year. JPMorgan Chase, Bank of America, Wells Fargo, U.S. Bank, and other major banks announced changes to reduce or eliminate the fees they charge customers for withdrawing money from their accounts. Banks began to lower overdraft fees – often $35 per transaction – after the Consumer Financial Protection Bureau and other regulators began investigating this highly profitable practice that disproportionately affects low-income customers.
8
This is
It is the number of times the student loan payment pause has been extended. Unlike other pandemic relief measures, the pause on interest and required payments on federal student loans has not ended. The pause began in 2020 and there is no fixed end date in sight – it has been extended repeatedly under both presidential administrations. As of 2022, federal student loans were in a state of suspension, with borrowers remaining in an ongoing wait.
$30,000
This is the amount homeowners have lost in equity through September due to declining home prices from their peak during the pandemic. Black Knight, a mortgage analytics company, estimated the average amount of equity homeowners held was $301,000 in September, down from $331,000 at the peak prices in May. Soaring mortgage rates, which hit the highest levels in two decades in November, cast a chilling shadow over the hot housing market that saw a 42% rise since the onset of the pandemic. The decline in home equity is just one symptom of this trend. Another telling number: the median mortgage payment on a newly purchased home was $2,012 in October, up $629 from the beginning of the year, marking a 45.5% increase, according to the Mortgage Bankers Association. This staggering drop in affordability has forced many potential buyers out of the market, resulting in declining sales and affecting prices. Some housing economists expect modest price declines, while others predict a collapse.
$7,270
This is how much a $10,000 investment in Bitcoin would have been worth by May if the cryptocurrency ads during the Super Bowl had convinced you to dive into the crypto market. The condition of cryptocurrency holders has deteriorated even further. In November, FTX, one of the largest cryptocurrency exchanges in the world, collapsed and declared bankruptcy, prompting renewed calls from government officials for customer protections in the “Wild West” of cryptocurrencies. In fact, 2022 has been a dreadful year overall for Bitcoin, Ethereum, and other digital assets. The value of that Bitcoin purchased during the Super Bowl would be just $4,031 by early December.
2011
This is the last time, prior to this year, that the benchmark S&P 500 index fell for five consecutive weeks. The stock market’s winning streak – the longest since 1928 – officially ended in May and has not returned to the peak it reached at the beginning of the year. As of December 6, the S&P was still down 17.95% from its level on January 3. Stocks in general have declined this year for one main reason: the Federal Reserve’s war on inflation. The Fed raised the key interest rate in an effort to slow the economy enough to rein in inflation, a move that typically impacts businesses and stock values overall.
Source: https://www.thebalancemoney.com/2022-the-year-in-numbers-6889421
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