Giving Compass' Take:

• Martha Ross and Nicole Bateman break down the demographics of low-wage workers and the jobs that they are doing? 

• How can this information be used to guide efforts to support low-wage workers? What does low-wage work look like in your community? 

• Find out how low-wage employment prevents work requirements from being effective.

As globalization and automation reshape the labor market, workers today must navigate a changing economic landscape. Some people and places are poised to do well; others, less so. One thing that is clear is these economic forces favor workers who have higher levels of education and earn higher wages. Low-wage workers risk becoming collateral damage, struggling to find their footing in the labor market and an educational system riddled with inequities.

More than 53 million people—44% of all workers aged 18-64—are low-wage workers by our criteria. They earn median hourly wages of $10.22 and median annual earnings of $17,950.

As globalization and automation reshape the labor market, workers today must navigate a changing economic landscape. Some people and places are poised to do well; others, less so. One thing that is clear is these economic forces favor workers who have higher levels of education and earn higher wages. Low-wage workers risk becoming collateral damage, struggling to find their footing in the labor market and an educational system riddled with inequities.

Low-wage workers are a racially diverse group, and disproportionately female. Fifty-two percent are white, 25% are Latino or Hispanic, 15% are Black, and 5% are Asian American. Both Latino or Hispanic and Black workers are overrepresented relative to their share of the total workforce, while whites and Asian Americans are under-represented. Females account for 54% of low-wage workers, higher than their total share of the workforce (48%).

Nearly two-thirds of low-wage workers are in their prime working years of 25-54, and nearly half of this group (40%) are raising children. Given the links between education and earnings, it is not surprising that low-wage workers have lower levels of education than those earning mid/high wages. Fourteen percent of low-wage workers have a bachelor’s degree, compared to 44% among mid/high-wage workers, and nearly half (49%) have a high school diploma or less, compared to 25% among mid/high-wage workers.

We estimate that half of low-wage workers are primary earners or contribute substantially to family living expenses. Twenty-six percent of low-wage workers are the sole earners in their families, with median family earnings of $20,400. Forty-four percent of this group live below 150% of the federal poverty line, and half of sole earners are caring for children. Another 25% of all low-wage workers live in families in which all workers earn low wages. Median family earnings for this group are $41,700, and 30% live below 150% of the poverty line. It disproportionately includes foreign-born individuals (33%) and those with limited English proficiency (24%).

Twenty-five million—or nearly half (47%)—of all low-wage workers are in just 10 occupation groups. The occupation employing the most lowwage workers is retail sales, accounting for 4.5 million people, or 8% of all low-wage workers.

Most of these occupations are dominated by low-wage workers, and in five of them, more than 75% of all workers earn low wages. These include retail sales workers, cooks and food preparation workers, building cleaning workers, food and beverage serving workers, and personal care and service workers (such as child care workers and patient care assistants). There are also clear occupational differences by gender. Male lowwage workers are much more likely to work in the construction trades and operate motor vehicles, while low-wage female workers are much more likely to work in administrative occupations and as nursing assistants.