"One In Four American Workers Will Be In Low-Wage Jobs For The Next Decade"
The share of the economy made up by low-wage jobs has grown since the Great Recession, and according to one new study, it won’t shrink in the future even as the economy continues to recover. The number of Americans working in low-wage jobs — those that pay wages equal to or below the poverty line — will remain steady over the next decade, according to the Economic Policy Institute, as CNNMoney reports:
Some 28% of workers are expected to hold low-wage jobs in 2020, roughly the same percentage as in 2010, according to a study by the Economic Policy Institute.
The study defines low-paying jobs as those with wages at or below what full-time workers must earn to live above the poverty level for a family of four. In 2011, this was $23,005, or $11.06 an hour.
The study is the latest to detail the growth of low-wage occupations in the United States. A recent report from the National Employment Law Project found that more than one in four private sector workers now make less than $10 an hour, an even lower threshold than was used in the EPI study. The five industries that are comprised mostly of low-wage workers, meanwhile, are growing faster than the overall American economy.
While the number of low-wage jobs has increased, so has the gap between low-wage workers and the executives who employ them. The federal minimum wage would need to be raised by more than $3 an hour to match the buying power it had in 1968, and overall wages in the U.S. have been virtually stagnant for decades, even as pay for chief executives has risen exponentially. At the 50 companies that employ the largest number of low-wage workers, chief executives made an average of $9.4 million last year.