In 2025, the story of low-wage work in America remains deeply troubling. A new analysis from leading labor economists and grassroots policy organizations reveals that millions of workers are still trapped in jobs that fail to meet the basic cost of living. Despite economic growth in certain sectors and promises of post-pandemic recovery, the foundation of the American workforce continues to be built on poverty-wage labor.
The promise that hard work should lead to a better life remains broken for nearly half of all working people. According to recent figures, over 52 million workers are earning less than $17 an hour. More than 25 percent of them lack any form of earned sick leave, and a growing number have little to no access to paid time off or healthcare coverage. These jobs are overwhelmingly concentrated in sectors like food service, hospitality, caregiving, and retail industries that kept the country functioning during a global health crisis, but that still offer their workers little protection or dignity in return.
The pressures on these workers have only intensified. Inflation continues to outpace wage growth in key areas like housing, transportation, and healthcare. The federal minimum wage has not increased since 2009, while the cost of living has surged. Many of the fastest-growing jobs in America home health aides, delivery drivers, grocery clerks continue to offer hourly wages that fall far below what is required for even a modest standard of living in most regions.
These jobs are vital. They involve preparing food, cleaning public spaces, caring for children and seniors, stocking store shelves, and responding to customers. Without this labor, communities do not function. Yet the economy continues to undervalue those who do the most essential work. Even as CEOs report record earnings and companies expand their automation capabilities, the human beings behind everyday services are forced to make impossible choices between paying rent or filling prescriptions, working through illness or losing their income entirely.
This is not an accident. It is the result of decades of policy decisions that have favored corporations over communities, deregulation over fairness, and temporary profits over long-term equity. But this reality can change if lawmakers and institutions prioritize people over profit.
Today’s researchers and advocates are renewing calls for a national reckoning on how the economy treats its most vulnerable workers. Among the most urgent policy changes now being advanced:
• Raising the federal minimum wage to reflect the real cost of living in 2025
• Mandating access to earned sick leave for all workers, regardless of sector or employment status
• Reinforcing and expanding overtime protections that are under legal attack in multiple states
• Reforming and broadening access to the Earned Income Tax Credit, especially for workers without dependents and those under 25
These changes are not radical. They are realistic, evidence-based reforms designed to create a healthier and more sustainable economy. The data continues to show that these policies increase worker retention, improve family stability, and boost local economies through stronger consumer spending.
The human cost of inaction is disproportionately borne by women and people of color. Today, nearly 60 percent of Hispanic workers and 55 percent of Black workers earn less than $17 per hour. For women of color, the numbers are even more stark many are supporting households as single parents, working multiple part-time jobs, and still falling short of the income needed to live securely.
Occupational segregation continues to place women into the lowest-paid roles, from childcare providers to housekeepers to personal care aides. In every state, women are overrepresented in jobs that pay less than $15 an hour. In states like Mississippi and Texas, more than 58 percent of low-wage earners are women.
The path forward is clear. Economic justice begins with the people who hold up the system everyday workers who deserve safety, stability, and a shot at building a future. By investing in policy solutions that reflect the dignity of labor, we can not only lift millions out of poverty but also rebuild the middle class that once formed the heart of this country.
It is time to stop treating poverty wages as normal. It is time to redesign an economy that works for everyone not just for those at the top.
Support the movement. Contact your elected officials. Donate to organizations fighting for labor justice. Advocate for your coworkers. Together, change is not only possible it is overdue.