The holiday season is on a budget this year. American households are entering the next festive few weeks with constrained spending power, a result of weak real income growth and a softened labor market that is disproportionately affecting younger and lower-income workers, according to a comprehensive financial health report from the JPMorgan Chase Institute.

The analysis, which leverages deidentified financial data from Chase customers, suggests that the period of relying on pandemic-era excess cash liquidity is now “in the rearview mirror,” and many consumers are facing a spending season where budgets are “tempered by tepid income growth.” For consumers who are “relatively disadvantaged by high housing costs and hold less stock market wealth”—a group that disproportionately includes youn

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