How American Workers Have Become Underpaid

Remember those good old days when a single person's salary was enough to support an entire middle class family? Well, it seems that nowadays, that's no longer possible. Fast food workers in 150 cities in the nation protested against chains like Burger King and McDonald's. Outside the Ford plant in Detroit, Michigan, a city that is home to America's still thriving auto industry, members of the United Auto Workers Union say their contracts do not reflect the company's sky-high profits. Those protests are staging at different locations, both in the Valley, but we've also seen it nationwide. Although the United States is one of the largest economies in the world, many workers still struggle with wages that do not adequately reflect their level of education, skills, and experience. Thousands of workers at fast food chains such as McDonald's and Burger King are walking off the job today, a protest outside the headquarters of the world's largest fast food chain in the Chicago suburb of Oakbrook. Thousands turned out the day before a McDonald's shareholders' meeting Thursday to demand $15 an hour wages for the burger giant's frontline workers. According to the Pew Research Center, only 34% of Americans feel satisfied with their work compensation, and nearly 70% say they have trouble making ends meet. So, why are Americans so underpaid, and what can you do about it? This chart shows the correlation between American worker productivity and the year-to-year increase in average salary. Since 1979, productivity has increased by nearly 70%, but average wages have not kept pace with an increase of only 12%. And this is how inflation-adjusted wages have evolved since April 2020. If you feel like it's getting harder and harder to afford things, you are certainly not alone. It appears workers are getting paid more, but inflation may have them feeling like they're getting paid less. Two in three employed Americans received a pay raise since October of last year. However, 60% of workers say their income has not been enough to keep up with inflation. Wages have always been a crucial issue in workers' lives. In the past, the income of a single person was enough to support an entire middle-class family. Today, nearly 54% of American families in which two or more people work feel that they can barely make ends meet. More people are struggling to make ends meet right now. A new report by Lending Club found the number of Americans living paycheck to paycheck jumped to 61% in June, and inflation is a big reason why. If you're living paycheck to paycheck, you're not alone. New data says nearly two-thirds of Americans are just struggling to make ends meet. In many cases, workers accept low wages thinking that it is appropriate for their professional stage. For example, an account executive at a major news organization may earn $40,000 a year, while another person with the same position may earn around $102,000 annually. This discovery has led many Americans to question whether they are being severely underpaid. New research indicates that in some states, individuals making minimum wage have to work as much as 100 hours a week in order to make ends meet. Americans are saying they need at least $1 million to retire comfortably, but most don't believe that they will actually meet that goal. Even with the 21% minimum wage increase, It is generally believed that the more educated a person is, the more they should earn. However, this does not correspond with reality. Teachers in the United States face a paradoxical situation. Despite being some of the most educated workers in the country, their salaries are notably low. According to data from the National Center for Education Statistics, the average salary of a public school teacher in 2023 was $65,000, while the average salary of all full-time workers was $75,000. This discrepancy is even more pronounced when compared to other professions that require a similar level of education. For example, biological scientists earn an average of $69,000, and urban planners $79,000, significantly more than teachers. Oakland teachers are among the lowest paid in Alameda County. The union is asking for a 23% pay raise. As several students prepare to go back to school, some teachers are heading out the door. Educators are quitting their jobs in alarming numbers. Schools are missing hundreds of thousands of staff. And more than half of educators say they're thinking of leaving. A significant problem in the U.S. labor market is underemployment. A report from the Federal Reserve Bank of New York highlights that approximately 33% of college graduates are underemployed, meaning they are working in jobs that do not require a college degree. This phenomenon not only affects recent graduates, but also middle-aged workers who cannot find jobs that match their level of education and skills. The Education Data Initiative says average college costs are as high as $55,000, but is it worth it? Ten years after finishing school, 45% of bachelor's degree holders were underemployed. That means they held a job that doesn't typically require a college degree. The Great Resignation of 2021, where millions of Americans quit their jobs, has revealed fundamental reasons behind job dissatisfaction. A study by the Pew Research Center found that 63% of workers who left their jobs cited low wages as one of the main reasons, along with a lack of advancement opportunities at 20%, and feeling disrespected at work at 17%. These reasons underscore widespread dissatisfaction with compensation and working conditions. The Great Resignation, that's what some experts are calling the growing trend of workers quitting or just changing careers. The workers that have been changing jobs seem to be more lower-wage workers. 65% of employees say they're looking for a new job, and 88% of executives say they're seeing a higher turnover than normal. In the healthcare sector, while doctors are generally well compensated, there is a public perception that nurses and healthcare assistants are underpaid. A study by the University of Chicago found that while doctors earn an average of $80,000 a year, healthcare assistants earn only $25,000 annually. This perception is reflected in public opinion, where only 11% of Americans believe that doctors are underpaid, while a significant majority think that nurses and healthcare assistants deserve higher wages. My name's Andrew. I'm an ICU nurse, and I just quit my job in a hospital. Decided pay was important, and if I ever wanted to make more money, I had to get into a different career. Now, although it may seem obvious, one of the main reasons some people earn more than others is simply because they ask for it. According to statistics, 60% of workers did not negotiate a higher salary when they were last hired. The difference between earning $55,000 and $60,000 annually may simply be because someone asked for the higher salary. It is not necessarily about having more skills or experience, but about the ability to negotiate. You've got to research what others are getting paid for commensurate work, whether you're a man or a woman. Luckily today, you can go online and see what everybody else is making in your sector, in your job. And you have to go into your boss with the confidence that you know what you're worth. How do you do that? You go online, you figure out what everybody else is making, and if you feel you're significantly underpaid, and you're hitting your mandates, and you're hitting your goals, and you've been a good employee, you simply say, look, here's what I'm worth, and we both know it. I've done a fantastic job for you, I've worked for you, I've made sure you've hit your goals as a manager, because that's my job, is to make sure you look great. I'd like to get compensated like everybody else. Here is my number. Low wages in the United States are the result of a combination of factors, including the undervaluation of certain professions, inequality in the distribution of wage increases, and unfavorable working conditions. Although some sectors have seen modest wage increases, many workers continue to struggle with wages that do not adequately reflect their level of education and experience. To address this issue, a re-evaluation of wage policies and a more balanced approach to the distribution of economic resources are needed. Only then can it be ensured that all workers receive fair compensation for their work, contributing to a strong and sustainable economy in the long term.