Millions of full-time workers struggle to make ends meet

A new report shared by Dayforce, in partnership with the Living Wage Institute, reveals new insights on how few workers are able to earn a living wage in the U.S. The report utilized records from nearly 600,000 full-time employees and examined gender, race and ethnicity, industry and geography. 

Among the findings, Dayforce reported that only 56% of full-time workers in the U.S. earn a living wage. When taking gender into account, men (62%) were significantly more likely to earn a living wage than women (50%). Also noteworthy, the median hourly wage for male workers is $29.40, compared to just $25.20 for women. 

Black and Latino workers are also less likely to earn a living wage. According to the report, 60% of full-time Black and Latino workers do not make a living wage compared to just 32% of white workers. The report also shared that the median hourly wage for full-time white workers is $30.80 compared to just $23.10 for Latino workers and $22.60 for Black workers. 

“Tens of millions of workers are simply not making enough to provide for their families’ most base needs,” said Dr. Amy Glasmeier, MIT Professor and co-founder of the Living Wage Institute. “Over the past few years, this problem has been made worse by cost of living increases outstripping gains in income for workers in lower-wage jobs. Women, Black and Latino workers, and those in some industries that are critical to our economy are disproportionately less likely to earn a living wage. Our hope is that this research brings both awareness and a sense of urgency to this critically important issue for employers of all types.” 

The report found that certain industries were far less likely to provide workers with a living wage than others. Only 31% of full-time workers in the leisure and hospitality industry, 36% of those in retail and 46% in healthcare earn a living wage. 

Read more: Nearly 1 in 3 North American employees unable to meet basic needs, research finds

Additionally, the report revealed that only 47% of full-time workers in three of the nation’s ten largest metropolitan areas – including Miami, Phoenix and Los Angeles – do not earn a living wage. 

“At Dayforce, we believe that every worker deserves the opportunity to realize their potential and enjoy happy, healthy and productive lives, said Jason Rahlan, Vice President for Corporate Responsibility and Sustainability at Dayforce, Inc. “Our mission is to make work life better, and we help employers achieve key business objectives while supporting their people as individuals, spouses, parents and caretakers. Our hope is that these insights inform our national conversation and spur progress towards more workers earning a just wage that allows them to more than simply survive but thrive.”