5 Major Struggles of Low-Wage Workers In USA With Their Solutions

Our research topic today starts with the context of the struggles of low-wage workers in USA. Understanding low-wage workers’ limitations and struggles is critical to foresee how they will participate in technological shifts in the future. Low-wage workers in the United States face many challenges that interfere with their ability to achieve financial stability and upward mobility. 

These struggles include economic insecurity, inability to fulfil basic needs, inflexible career opportunities, and the impacts of technology and automation, which are pressing issues that demand immediate and comprehensive solutions.

Hence, in this blog, we will look into various struggles of low-wage workers in the USA and their solutions to understand how definite changes can positively affect an underpaid worker’s life. Also visit Route Shopping Social Blogs to stay updated on latest social issues, trends and news.

The top 5 major struggles of low-wage workers are mentioned below.

  • Economic Insecurity
  • Rising Cost of Living 
  • Limited Career Advancements
  • Economic Insecurity & Technology and Automation
  • Toxic Workplace Impact on Low-Wage Workers
struggles of low wage workers in usa


Struggles Of Low-Wage Workers In USA With Solutions

1- Economic Insecurity

Economic insecurity remains among the most significant challenges for low-wage workers in the USA. With the recent wage increase, many workers still struggle to cover essential expenses such as housing, healthcare, and food. According to data, over 40% of U.S. households cannot meet their basic needs, reflecting a substantial gap between earnings and the cost of living.

Elise Gould, a senior economist at a well-known Economic Policy Institute, said the “labour market is stronger now” for people who previously struggled with low-paying jobs. She further added that employers who lost their jobs during COVID-19 or for other reasons can now look across the street for jobs with better wages and bonuses.

Although she said that it is all better now, and, to some extent, that could be true, research from the Economic Policy Institute declared otherwise. The report showed the continuous struggle of low-wage workers.

Thus, the stagnation of wages over the past few decades has further worsened this issue, leading to a loss of purchasing power for low-wage workers.

Potential Solution

Educational and Training Programs

  • Targeted education and training programs can help low-wage workers acquire the skills needed for higher-paying jobs. Initiatives like vocational training and apprenticeships are crucial.
  • Partnerships between employers and educational institutions can guarantee that training programs align with industry needs, facilitating smoother worker transitions.

2- Rising Cost of Living 

The variation in living costs across different states adds a layer of complexity, as the high-cost states showed even significant challenges for low-wage workers​. For instance, expensive places like Massachusetts have higher hourly wages than cheaper places like Mississippi. 

Even though some states, especially in the Midwest, saw pay increases for definite jobs, those jobs often still need to pay more to afford things like a house.  For instance, Illinois and Indiana saw a 24% to 25% median pay increase. However, those low-paying job workers still earn $18 per hour.

Thus, inflation and rising costs have outpaced wage growth, making it difficult for workers to maintain a decent standard of living​. Moreover, if you are also facing a challenging issue of cost of living, and want to save cost on groceries, explore Clicky Voucher deals and discounts on departmental stores.

Cost of Living


Potential Solution

Policy Interventions

  • Another major point is raising the minimum wage. It ensures and keeps pace with inflation, relieving some financial pressures on low-wage workers.
  • Equipping access to inexpensive housing, health care, and child care can reduce the financial burden on people with low-paying jobs.

3- Limited Career Advancements

Low-wage workers often find it challenging to move to better-paying jobs because they lack skills, education, and opportunities​. Underpaid workers often find themselves trapped in jobs with little to no opportunity for career advancement. A shortage of access to education and training programs and limited job mobility sustain the cycle of low wages and economic hardship.

For instance, some jobs, like those in restaurants (hospitality), are like sandpits – it’s hard to climb out and get a better-paying job. This is especially true the longer you stay in that job. Other jobs, like those in professional services (like lawyers or accountants), are easier to move up from and get a raise.

The important part is that only some have the same chance to move to a better job due to insufficient skills or qualifications, making it difficult to improve their financial situation.

Potential Solution

Improved Management Practices:

  • Management practices should support underpaid workers. These practices include fair scheduling, providing career development opportunities, and recognizing a worker’s consistency. This way, the worker feels job satisfaction and stability.

4- Economic Insecurity & Technology and Automation

This is not the first time technology has been a threat to use in some way. In industries like these, such as restaurants and factories, Technological advancements and automation pose additional threats to underpaid workers, as many of their jobs are at risk of being displaced. To learn more about the shifts in technological advancements, explore Route Shopping IT blogs. 

While technological change might be a worry in the future, many workers are more concerned with everyday economic problems. They are stressed about getting enough work hours and making ends meet. They need more time and energy to worry about what technology might do to their jobs in the future, and technology can worsen these problems. 

Even if technology doesn’t directly cause job losses, it can lead to fewer hours or lower pay, and low-wage workers are more worried about this. If workers are struggling financially today, they won’t be able to handle changes brought on by technology.

Potential Solution

Support for Economic Mobility & Insecurity

  • To mitigate this issue, there should be initiatives that support economic mobility, including income support programs, tax credits, and subsidies for essential services. These can help 
  • Another essential thing is to promote economic policies that create reasonable growth and provide opportunities for all underpaid workers to benefit from financial advancement.

5- Toxic Workplace Impact on Low-Wage Workers

Toxic workplaces are ordinary across various industries, but low-wage workers often experience them more acutely. These environments are set out by poor management, lack of respect, inadequate support, and high levels of stress. A person can face bullying, harassment, and unfair treatment, racism, all contributing to a toxic workplace environment.

There are many reasons why low-wage workers have to face such issues. For instance, if a person is a low-wage worker and new to the country, he is more vulnerable to the negative effects of toxic workplaces, as they need more resources and job security.

Ana Avendano, a law professor at the City University of New York School of Law, mentioned that well-known fast-food chains like Mcdonald’s where workers have faced issues like sexual harassment, which is such a red flag for people trying to get low-paying jobs there. Even though they are such a big franchise, it is still not immaculate from such issues.

Issues like toxic workplaces arise due to power imbalances, economic inequality, and regulatory oversight. Low-wage workers, in particular, face systematic barriers that prevent them from improving their work conditions.

Potential Solution

Need for Systematic Changes

  • A Systemic Change is needed to Address Toxic Workplaces, which includes better labour law enforcement, improved workplace policies, and definite support for workers’ rights. Advocates call for increased attention to the plight of low-wage workers and the implementation of measures to protect them from toxic environments.

Linda Seabrook, director at Futures Without Violence, suggested that organizations should invest in a horizontal structure and “pursue being anti-racism,” referring to Ibram X.

Summary

Lastly, there are other issues which make the low-wage workers struggle. Few of them have potential solutions, but there are some issues whose solutions are yet to be derived. The above-mentioned issues, with their respective solutions, can create a more equitable and supportive environment for low-wage workers. It is a moral imperative and a necessary step toward creating a more inclusive and thriving society.

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