Fewer Americans Earn Low Wages

Wages have been growing continuously in the U.S., based on the Bureau of Labor Statistics measure of average hourly earnings . And this is especially meaningful for lower-wage earners.

In 2024, less than a quarter of Americans earned a low wage, down from roughly a third in 2022, according to a new report by global poverty NGO Oxfam . Oxfam defines “low wages” as earnings less than $15 per hour in 2022, and less than $17 per hour in 2024.

How Did We Get Here?

The strong labor market of the past few years forced many companies to offer more competitive pay to compete for talent. Plus, advances from labor unions have also resulted in pay wins for workers. Plus, 22 states increased their minimum wages this year.

Oxfam’s data is particularly promising at a time when the number of workers living paycheck to paycheck is rising and U.S. households have felt their spending power diminish in the face of persistent inflation.

The Evolving Worker Movement

But even though rising wages are undoubtedly positive for workers, it’s not all good news. The percentage of low-wage workers remains skewed toward women and people of color, with Black and Hispanic workers each accounting for nearly a third of lower-wage workers, per Oxfam.

White workers accounted for just over a fifth of lower-wage workers. Looking at the gender split, 27% of working women earned low wages, compared to 19% of men.

At the federal level, the minimum wage has not been updated since 2009 and still sits at $7.25 per hour.

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