In this recent Connection Communities webinar, discover how low- to moderate-income workers adapt to rising costs and limited opportunities. Hear firsthand stories, research highlights, and Federal Reserve leaders' insights on how financial pressures shape choices, resilience, and the future of our economy. Watch or listen on demand.

What does it mean to 'tighten your belt' when you've already run out of notches? Through a compelling combination of on-the-ground research and policy expertise, this session examined how workers who earn low to moderate incomes (LMI) are navigating rising costs, limited opportunities, and a challenging job market. Attendees gained insights on the effects financial distress of LMI communities have on labor market dynamics and economic mobility and resilience.

Featuring highlights from the Worker Perspectives research, this session revealed the daily realities of individuals struggling to make ends meet and illuminated how financial pressure shapes their consumption patterns, employment choices, and long-term planning. Attendees also heard perspectives from the Presidents of the Federal Reserve Banks of Cleveland and Chicago, and the Executive Vice President over Research at the Federal Reserve Bank of Atlanta on how insights from various economic stakeholders, including workers and job seekers, provides a unique window in economic conditions and helps to shape monetary policy considerations.

Through this session, policymakers deepened their understanding of how LMI populations experience the economy and the effect of their behavior on macroeconomic trends. Employers gained perspectives on evolving workforce needs and the financial pressures shaping their labor supply and worker decisions. Organizations serving workers and job seekers discovered actionable insights to better support economic mobility and build household resilience.

More on the Worker Perspectives research: https://fedcommunities.org/research/worker-perspectives/

Place plays an important role in shaping the economic outcomes of residents. Place-based stratgies have long been used to address employment and mobility barriers in lower-income communities. However, evidence on the effectiveness of such intiatives has been mixed.

During this seminar, presented by the Federal Reserve Banks of Atlanta and Philadelphia on August 12, 2026, researchers examined the impact of workforce development programs, shared ideas to strengthen their effectiveness, and offered insights to help inform future place-based strategies.

Benefits cliffs are increasingly recognized as a critical barrier to economic mobility in communities across the country. When a raise, promotion, or new job pushes an individual or family above eligibility thresholds for public benefits, the result can be a net financial loss. This creates difficult choices for workers, employers, and policymakers.

As awareness of benefits cliffs grows, so does momentum around research, policy innovation, and community-driven solutions. This Connecting Communities webinar brought together researchers and practitioners to explore the latest evidence on how benefits cliffs affect workforce participation and economic opportunity, highlight promising strategies emerging from innovative pilots, and identify priorities for future research.

During this event, participants learned more about:

• key research findings on how benefits cliffs affect employment and advancement decisions for workers and job seekers,
• learnings from innovative pilot programs designed to reduce the impact of benefits cliffs, and
• a research agenda that can inform more effective, equitable solutions for policymakers, community-based organizations, and employers.

Related Resources:

• What Are Benefits Cliffs?: https://www.atlantafed.org/what-we-study/workforce-development/advancing-careers-for-low-income-families/what-are-benefits-cliffs
• The Research Landscape for Benefits Cliffs: Reviewing the Benefits Cliffs Research: https://www.atlantafed.org/-/media/Project/Atlanta/FRBA/Documents/news/events/2026/02/12/2026-benefits-cliffs-research-convening/conference-recap.pdf
• Career Ladder Identifier and Financial Forecaster (CLIFF) tool: https://www.atlantafed.org/research-and-data/data/cliff-tool
• Benefits Cliff Story Series: https://fedcommunities.org/benefits-cliffs/