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A new study shows that over 40% of full-time workers in the U.S. aren’t earning enough to make a decent living capable of supporting a family.
The inaugural Dayforce Living Wage Index examined data from nearly 600,000 full-time employees to reveal only 56% of full-time workers in the U.S. can do so.
Several gender and racial disparities are also shown, with 62% of men earning a living wage compared to just 50% of women. Additionally, 60% of Black and Latino workers do not earn a living wage, whereas this is true for only 32% of white workers. These inequities reflect ongoing challenges for the future of work, signaling a need for policies and initiatives that address wage gaps and promote fair compensation across all demographics.
The median hourly wage further highlights national pay gaps. The study shows men earn a median hourly wage of $29.40, while women earn $25.20. When comparing race and ethnicity, white workers earn a median hourly wage of $30.80, in contrast to $23.10 for Latino workers and $22.60 for Black workers.
Industry-specific data shows that several sectors that are critical to the economy — such as leisure, hospitality, retail, and healthcare — have the lowest rates of living wage earners.
“Certain industries are likely to have a higher percentage of workers in low-wage jobs,” according to the Dayforce report. “Our research revealed that nearly 7 in 10 leisure and hospitality workers, almost two-thirds of retail workers, and more than half of those in healthcare fail to earn enough to cover the basic necessities for themselves and their families.”
Wages also vary depending on the U.S. metro area. In four of the nation’s 10 largest metropolitan areas — including Miami, Phoenix, Los Angeles, and New York — at least 44% of workers do not earn a living wage.
The study reveals the need for wage reform and targeted policy interventions to address widening economic disparities in the U.S. workforce. With significant wage gaps across gender, race, and industry, the future of work demands a stronger emphasis on equity, fair compensation, and localized strategies to ensure more workers can earn a living wage. Failing to address these issues could lead to increased financial strain on workers and greater economic instability across the nation.
