For those who are dependent on tips as part of their income, current economic conditions are not favorable. According to a recent Associated Press article, workers who traditionally depend on tips for much of their income are seeing a 25-30% decrease in individual tips and tip density. “Some people are coming in less and less and maybe not staying as long when they do come in,” and “people [are] waiting longer between appointments—cutting down the amount of times people tip,” are just some of the observations witnessed by workers in these sectors. Customers are feeling the pinch in these times and are responding by reducing spending. “People with high income tip more than people who earn less…it follows that people tip less when the economy sours and their income drops.” Previously, customers who tipped 15-20% now only tip 5-10% or nothing. This is unfortunate for bartenders, whose tips are almost 50% of their income, or cab drivers who are not even making enough in tips to fill up the gas tank. Now, just to earn the same amount as before, employees need to work additional hours or overtime.
Everyone is feeling the pinch of the economy, but not tipping is not okay. Tips are immensely important to workers in the service fields, considering they make up a good part of workers’ incomes.