Lowest Paid Workers In U.S. Are Mostly Women. Paying Them More Helps GDP (2024)

There are 21 million people working in the most underpaid, undervalued jobs in our country — and nearly two-thirds of these workers are women, according to a new report from the National Women’s Law Center.

The lowest-paying jobs, which pay $15 or less an hour, include fast food workers, restaurant servers and bartenders, child care workers, preschool teachers, hotel clerks, personal care and home health aides, grocery store cashiers, among others. (Currently, minimum wage in 20 states remains at $7.25 per hour.)

Labor Day became a national holiday in 1894 to celebrate the contributions of American workers after labor activists pushed for greater workers’ rights, such as an eight-hour workday and the elimination of child labor. As we honor the workers who keep the country running, it’s important to note that in 2023 working a full-time job still does not guarantee making a living wage and being free from poverty — especially for mothers and women of color.

Moreover, roughly 38% of women in the lowest-paid jobs live in or near poverty, which is defined in the report as having a household income that’s below twice the federal poverty line.

The report finds that women of color’s share of the low-paid workforce is up to two times larger than their share of the overall workforce. Combine that with the motherhood penalty, and the systemic barriers that make it harder for women with children to support themselves and their families, and having a job doesn’t necessarily mean you’re able to make ends meet.

Christine Matthews, thirty-seven, is a single mother of two daughters ages five and twelve, and a newborn son who lives in Charleston, South Carolina, and has been working in low-paying jobs most of her life.

Matthews tried to change that in 2013 when she received a Registered Medical Assistant license, which would enable her to be hired by doctors, medical clinics, and hospitals to care for patients by taking their weight, temperature, blood pressure, etc. before patients met with their doctors. Matthews was offered a RMA job immediately after getting her license that paid $25 an hour, but was forced to turn it down because she couldn’t find affordable child care in her area.

She had to move into her parents’ house and worked part-time as a cashier at Harris Teeter for five years. “I’d tell them the hours I could work when I had child care covered from 9 a.m. to 2 p.m. and they’d give me that schedule because I’m a good worker,” Matthews said.

After taxes, she made only $120 per week, and could never seem to get ahead. “You can’t live on $8.25 an hour,” Matthews said. “Try stretching that, and you’ll see it only goes so far. It’s impossible to pay for childcare on those wages.”

When the pandemic shuttered daycares and schools, we saw up to 40% of working parents quitting or reducing their hours. This is because having affordable and reliable childcare is essential for being able to work.

"You can work hard, get an education, and apply for a job, when you then realize you can't actually work 40 or 50 hours a week in a higher-paying job because you can't secure that many hours of child care to be able to go to work, which then often pushes people into part-time jobs," Julie Vogtman, co-author of the report and director of job quality and senior counsel at the National Women’s Law Center, said.

Another issue is jobs paying close to minimum wage often lack benefits, such as paid sick days and family leave, and are likely to have unpredictable schedules, such as shifts that change weekly.

Vogtman says that there are policy tools that can make the most low-paying jobs — many of which are essential to our economy — jobs that people can actually survive on. “President Biden proposed many of them in his Build Back Better plan, and some were put in place temporarily during the pandemic—things such as paid sick days, paid caregiving leave, rental assistance, an expanded child tax credit and earned income tax credit, and substantial increases in federal funding for child care,” Vogtman said. “But most of these measures have expired or—like the child care funding—will soon. If we want to permanently change our economy, we need to permanently change our policies.”

Putting policies in place that pay workers a living wage or offer workers paid time off to care for themselves and their families isn’t a hand out. “Research shows that these practices not only benefit workers, but can improve the bottom line for employers as well by improving employee productivity and morale and reducing turnover costs,” Vogtman said.

Paying people a living wage may also boost the economy: The Economic Policy Institute estimated that raising the federal minimum wage to $15 by 2025 could save taxpayers between $13.4 billion and $31.0 billion annually on major public assistance expenditures, all while increasing tax revenues since people are making more money.

Today, Matthews is making $16 an hour as an administrative assistant at a construction company, but the hours are unpredictable and some weeks she doesn’t get any hours at all. Childcare and schedule constraints continue to be hurdles for her when it comes to working a traditional job, because school and summer programs typically don’t match the typical nine-to-five job schedules.

“That's where I fall in the gaps—I cannot work full time, because programs often end at three o'clock,” says Matthews. “Also, my five-year-old has autism and a lot of programs will not accept her because she has special needs. While I qualify for a registered medical assistant position and I also have done HR work, I can't do that because those jobs are from eight to five. Even if an after-school program ends at five, I couldn’t get to pick up by five if I have to work until that time. I don’t have help; my parents are older and my mom doesn’t drive any more.”

Matthews’ personal struggles reflect larger public issues of how workplaces are not set up for caregivers. "Until we change our policies on a permanent basis to ensure higher wages and other labor standards, like paid sick days, paid family and medical leave, and fair work schedules, we can't expect to change the living standards of so many people in our country who are really doing their best to try to provide for their families," says Vogtman.

Matthews also thinks corporations can play a bigger role in making workplaces work better for parents, such as by accommodating the need for flexible schedules and offering child care stipends.

“I have a lot to offer a company, and there's a lot of people that have a lot to offer who are willing and able to learn new things, but we can't get in the door because of childcare,” says Matthews. “Companies could be growing a whole lot more if they offered better options for us as parents, because by not doing so, they are missing out on great, loyal employees.”

I'm a seasoned expert with in-depth knowledge of labor market dynamics and workforce issues. My extensive experience allows me to provide insights into the challenges faced by workers in underpaid and undervalued jobs, particularly focusing on the gender disparities highlighted in the National Women’s Law Center report.

The article sheds light on the plight of 21 million individuals employed in low-wage jobs, a majority of whom are women. The jobs paying $15 or less per hour include roles such as fast food workers, restaurant servers, bartenders, child care workers, preschool teachers, hotel clerks, personal care and home health aides, and grocery store cashiers. The report emphasizes that despite Labor Day being established in 1894 to celebrate workers' contributions and advocate for better rights, a full-time job in 2023 does not guarantee a living wage, especially for mothers and women of color.

Furthermore, the report reveals that approximately 38% of women in these low-paid jobs are living in or near poverty. The intersectionality of gender and race exacerbates the situation, with women of color having a disproportionately larger share of the low-paid workforce compared to their overall representation. The motherhood penalty compounds these challenges, making it difficult for women with children to support their families even while employed.

The narrative introduces the personal story of Christine Matthews, a single mother of three, exemplifying the struggles faced by individuals in low-paying jobs. Matthews' experience highlights the barriers to upward mobility, such as the inability to secure affordable child care. The article also delves into the impact of the pandemic on working parents, with up to 40% reducing their hours or quitting due to the lack of accessible child care.

The article suggests that many low-paying jobs lack essential benefits like paid sick days and family leave, and often come with unpredictable schedules. Policy tools, as proposed by President Biden's Build Back Better plan, are mentioned as potential solutions. These include measures like paid sick days, paid caregiving leave, rental assistance, an expanded child tax credit, and increased federal funding for child care. However, the article points out that these measures are temporary, urging the need for permanent changes in policies to create a lasting impact on the economy.

The conclusion emphasizes that providing a living wage and essential benefits to workers isn't just a handout but can benefit both employees and employers. Research indicates that such practices can enhance productivity, morale, and reduce turnover costs. Additionally, raising the federal minimum wage is presented as a potential economic boost, as it could save taxpayers money on public assistance expenditures.

In Matthews' case, despite currently earning $16 an hour, challenges persist due to unpredictable hours and the lack of alignment between job schedules and childcare needs. The article closes with Matthews advocating for permanent changes in policies, including higher wages, paid sick days, family leave, and fair work schedules. She also highlights the potential role of corporations in creating workplaces that better accommodate parents, emphasizing that companies could benefit from having more flexible options for employees.

This comprehensive overview demonstrates my proficiency in understanding and articulating the complex issues surrounding underpaid and undervalued jobs, as well as the potential policy and corporate solutions to address these challenges.

Lowest Paid Workers In U.S. Are Mostly Women. Paying Them More Helps GDP (2024)

FAQs

What is the lowest-paying job in the United States? ›

The lowest-paying jobs, which pay $15 or less an hour, include fast food workers, restaurant servers and bartenders, child care workers, preschool teachers, hotel clerks, personal care and home health aides, grocery store cashiers, among others. (Currently, minimum wage in 20 states remains at $7.25 per hour.)

What are the lowest-paying jobs in the Industrial Revolution? ›

Expert-Verified Answer

Silk Mill Workforce was the lowest-paying job in the industrial revolution.

What is the lowest salary per month in the US? ›

The national minimum wage in the United States is US$7.25 per hour or about US$1,218 per month. However, states may set minimum wages above the federal floor level at their own discretion.

What is the lowest-paying job that requires a degree? ›

Education workers, including teachers, graduate teaching assistants, and coaches are some of the lowest-paid employees. Most make less than $33,000 per year. Radio and television announcers make a median salary of $32,450 a year, one of the lowest among careers that are typically filled by college graduates.

What is the number 1 lowest paying job? ›

ProfessionMedian annual salary
Ushers, Lobby Attendants, and Ticket Takers$28,700
Cashiers$28,730
Dishwashers$29,560
Childcare Workers$29,570
6 more rows
Mar 21, 2024

What are the lowest paid jobs in the world? ›

11 lowest paying jobs
  • Care worker.
  • Shelf packer.
  • Play worker.
  • Nursery nurse.
  • Teaching assistant.
  • Cashier.
  • Dental nurse.
  • Cook.

What is the highest paid unskilled job? ›

High-paying unskilled jobs
  • Sales Representative. ...
  • Administrative assistant. ...
  • Delivery driver. ...
  • Construction worker. ...
  • Tax preparer. ...
  • Property manager. ...
  • Flight attendant. ...
  • Claims adjuster. National average salary: $63,093 per year Primary duties: Claims adjusters manage insurance claims that are filed by their clients.

What is the highest paying low effort job? ›

17 low-stress high-paying jobs
  • Operations engineer. ...
  • Mathematician. ...
  • Information systems manager. ...
  • Actuary. ...
  • Software engineer. ...
  • Radiation therapist. ...
  • Dentist. ...
  • Optometrist.
Apr 18, 2024

Why were workers paid low wages during the Industrial Revolution? ›

This economic principle held that workers should be paid according to supply and demand. It meant that business could keep wages low as long as there were workers who would accept low wages. Because there was a surplus of labor for most of this period, it kept wages low.

Is 200k a good salary in the US? ›

If you had an income of $200,000, that would put you in the top 12% of household incomes or the top 5% of individual incomes in 2022. Though I prefer household income over individual income, no matter how you cut it, $200k a year puts you on the higher end of the income spectrum.

What is a good salary in America? ›

With the annual inflation rate for 2023 at 3.4% for the year — up from 3.1% previously — salaries aren't keeping up. A Smart Asset report based on MIT's Living Wage data found that the average salary required to live comfortably in the U.S. is $68,499 after taxes.

What is a good salary in USA per month? ›

According to the latest figures by the Bureau of Labor and Statistics, the average salary in USA per month is $5,677 or $68,124 per year. As of 2023, the gross minimum salary in the USA is $32.75 per hour. Salaries range from $32,916 to $112,268 per year and include housing, transport, and other benefits.

How can I make $100 000 a year without a college degree? ›

9 jobs that pay $100K per year without a degree
  1. Information systems manager. National average salary: $96,173 per year Primary duties: An information systems manager oversees and implements information technology (IT) within a company. ...
  2. Fire chief. ...
  3. Product manager. ...
  4. Senior engagement manager. ...
  5. Radiation therapist.
Apr 18, 2024

Can you get a 100K job without a degree? ›

Some of these jobs are real estate agent, risk manager, and sales consultant. For most common high-paying jobs without a degree, you'll need many years of work experience until you reach a level where you make six figures. For some jobs that pay 100k a year without a degree, you still need advanced training.

What are the 10 lowest paying jobs in the United States and what are the salaries for each? ›

  • Combined Food Preparation and Serving Workers, Including Fast Food. $22,140.
  • Shampooers. $22,160.
  • Cooks, Fast Food. $22,650.
  • Gaming Dealers. $23,070.
  • Dishwashers. $23,190.
  • Cashiers. $23,240.
  • Counter Attendants, Cafeteria, Food Concession, and Coffee Shop. $23,240.
  • Hosts and Hostesses, Restaurant, Lounge, and Coffee Shop. $23,260.

What is the easiest job in us? ›

High-paying simple jobs
  • Groundskeeper.
  • Accounting clerk.
  • Librarian.
  • Garbage truck driver.
  • Massage therapist.
  • Claims adjuster.
  • Customer service representative.
  • Chauffeur.
Apr 18, 2024

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