US-ECONOMY-LABOUR-HOTELS-STRIKE-HOLIDAY

US hotel workers demonstrate as they strike over the Labor Day holiday weekend in Boston, Massachusetts, on September 2, 2024.

(Photo by Joseph Prezioso/AFP via Getty Images)

Nearly Half of US Workers Earn Below a Living Wage: Report

"The shocking truth is that half of America cannot afford to live in America," said one leading campaigner for better wages.

Pro-worker advocacy organization One Fair Wage on Friday released a report that detailed the precarious financial situation facing American workers.

In all, the report found that 67 US million workers, or nearly half the entire American workforce, earn less than $25 per hour, which is what One Fair Wage has calculated constitutes a living wage in 2025.

To put this into perspective, the report notes that the Fight for $15 campaign that started in 2012 to raise the minimum wage to $15 per hour would be way out of date today, as such a wage would only be worth $21 per hour today, which would still be below a living wage.

As if this weren't bad enough, the report outlines three crucial factors that could put further pressure on American workers: US President Donald Trump's tariffs on imported goods, the cuts to Medicaid and the Supplemental Nutrition Assistance Program contained in the Republican budget law, and the fact that tipped workers are in many cases are paid subminimum wages.

Trump's much-hyped "no tax on tips" initiative is a flop in this regard, the report states, because "two-thirds of tipped workers do not earn enough to file income taxes, meaning the vast majority would see no benefit from this measure."

"The shocking truth is that half of America cannot afford to live in America," said Saru Jayaraman, president of One Fair Wage. "The Fight for $15 changed history by lifting up the public imagination and proving that bold demands can become reality. Now workers are calling for something more fundamental, a living wage that actually meets the cost of survival. This Labor Day, thousands of workers are rising up in New York, Chicago, and across the country to demand real solutions and to launch the Living Wage for All campaign to make America affordable now."

In total, the report estimates that a true living wage today would need to be between $25 and $30 per hour.

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