By the numbers (part 1): A new survey examines the financial health of LGBTQ+ people

According to the Center for LGBTQ Economic Advancement and Research (CLEAR), LGBTQ+ people in the United States face a number of economic and financial disparities compared to their straight peers, often driven or exacerbated by experiences of discrimination.

Existing research shows that LGBTQ+ people face consistently higher rates of poverty, food insecurity, unemployment and job discrimination, among other disparities. These inequities are often even worse for transgender people and people of color.

Related:

LGBTQ+ Nigerians face debilitating workplace prejudice

Nigerian LGBTQ+ employees have no legal support in the country and must often hide their true selves.

Yet a historical lack of data collection among these groups by the government and other organizations has contributed to a shortfall of empirical information regarding the financial health, well-being, access and security issues that face LGBTQ+ Americans. According to CLEAR, this limits public understanding of the experiences of the LGBTQ+ population, and the causes of, or contributors to, the obstacles they face.

It also hampers the effectiveness of policies or interventions intended to improve lives and economic stability.

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Now, for the first time, a new survey sponsored by CLEAR and the Movement Advancement Project offers a comprehensive look at the financial well-being of LGBTQ+ communities. The first “LGBTQI+ Economic and Financial (LEAF) Survey” illustrates the power of inclusive data collection to illuminate the unique experiences of LGBTQ+ people, and support informed decision-making.

The survey consisted of 2,505 LGBTQ+ adults ages 18 or older in the U.S., administered online from December 16 to 27, 2022, with margin of error of ±2%. An additional survey of 503 straight and cisgender adults was conducted online from January 27 to 29, 2023, with the margin of error at ±4%.

The distribution of LGBTQ+ respondents alone is an interesting collection of data points, confirming existing research and contradicting common wisdom about where LGBTQ+ people live and thrive. The largest share lived in the South (40%), followed by the Midwest (23%), the West (20%), and finally the Northeast (17%). Additionally, more than one in five respondents (22%) lived in a rural area, more than two in five (43%) were from a suburban area, with the remainder (34%) living in an urban area

Consistent with existing research, the majority of respondents identified as bisexual (55%), about a third identified as gay or lesbian (32%), with 5% pansexual, 3% asexual, 2% another orientation and 1% unsure how they identified.

Gender broke down with 56% identifying as women, 37% as men, 7% nonbinary, genderfluid, or gender non-conforming, and 3% unsure. Fewer than 1% identified as Two-Spirit or as another gender.

6% of respondents identified as transgender. 3% identified as intersex.

The racial breakdown differed from research showing nearly half of the LGBTQ+ population are people of color. 67% of respondents identified as non-Hispanic white, 15% were Hispanic or Latino, 11% were non-Hispanic Black, 3% were non-Hispanic Asian American, and the remaining 4% reflected other (non-Hispanic) racial identities.  

Consistent with higher identification rates for LGBTQ+ young people, half of respondents were 18-34 years old (50%), one in five were 35-44 (20%), one in four were 45-64 (24%), and another 7% were over the age of 65.

Income

The topline from the LEAF survey is that LGBTQ+ people make less money and have more debt than their straight peers. LGBTQ+ respondents reported far lower annual household incomes than adults nationwide (as reported by the U.S. Census Bureau’s American Community Survey), with a majority reporting a household income of less than $50,000 per year, compared to 36% of adults nationwide. While 34% of adults nationwide reported a household income of $100,000 or more, only 13% of LGBTQ+ respondents reported a six-figure income.

The most common source of income was a full or part-time job. With this sample and the LGBTQ+ population both younger on average, respondents are more likely to be employed in the workforce and less likely to be retired and receive income through Social Security or a pension. In 2022, the U.S. Federal Reserve reported that 27% of people nationwide reported receiving Social Security income, higher than the 18% of LGBTQ+ respondents in this sample.

Employment Status

Table 2 reveals over half of the LGBTQ+ population was working when the survey was conducted. At the time (December 2022), the national unemployment rate was 3.5%, according to the Bureau of Labor Statistics, vs. 13% for LGBTQ+ respondents. The large difference illustrates why federal agencies should collect demographic data about sexual orientation and gender identity to better understand the unique experiences of LGBTQ+ people.

Most workers said they had one job (85%), but one in seven (14%) said they were working two jobs, while 1% reported they worked three or more jobs.

Almost one in five workers (18%) said one or more of their current jobs is a gig-worker position, twice as many as non-LGBTQ+ workers reported and more than four times the number of adults nationwide currently working a gig job (4%), according to a recent Pew survey.

The vast majority of workers were paid by direct deposit and check, while almost 10% were paid through apps like Venmo and Cashapp. Five percent said they received cash tips, and 4%  were paid under the table.

Employment benefits for workers in the private sector included health insurance (70%), dental insurance (59%), and paid sick leave (56%). One in three received paid family leave, but only 18% of respondents said their paid leave applied to chosen family, revealing a major gap in paid leave needs for LGBTQ+ people.

According to the Center for American Progress, 29% of LGBTQ+ people say they would be likely to turn to a partner to whom they were not legally married for care, and 72% of LGBTQ+ people ages 55 and older said they had been called upon to support friends or chosen family due to a health-related need.

Savings

When it comes to personal savings, there’s a major disparity between LGBTQ+ respondents and their straight peers. Over half of LGBTQ+ people had less than $5,000 in savings, including 20% who had no savings at all, a much lower rate than the median amount of savings and investments among U.S. households overall, which was $25,700, according to the Federal Reserve’s 2019 Survey of Consumer Finances.

Debt

While straight cohorts and LGBTQ+ people alike have hefty debts, they differ in composition. Almost half of LGBTQ+ people had more than $10,000 in debt, including 20% with more than $50,000, but student loans and credit cards were the largest contributors, vs. credit cards and mortgages for the non-LGBTQ+ population.

Survey authors point out student loan forgiveness programs would affect LGBTQ+ disproportionately in the positive. $10,000 of forgiveness for federal student loan borrowers would wipe out more than one quarter (28%) of LGBTQ+ student debt, while forgiving $20,000 would wipe out the balances of 40% of LGBTQ+ student borrowers.

Debt, a lack of savings and a high unemployment rate are some of the reasons that just half of LGBTQ+ people reported they were able to pay all of their bills each month, in contrast to 62% of their straight peers who said they could pay all their bills. “Paying all of my bills on time” was by far the top financial priority of LGBTQ+ respondents (72%), compared with paying down debt (39%), improving my credit score (28%) and saving for retirement (22%).

In Part Two of our LEAF Financial Survey breakdown, we look at some of the other financial priorities of LGBTQ+ people, including starting a family, buying a home, and saving for gender-affirming care and procedures.