More Than a Third of Americans Earn $20 or Less Per Hour

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A new analysis found that over 50 million workers, or 35% of the U.S. working population, earn $20 or less per hour. While $20 per hour may not be enough to cover living expenses in high-cost cities, experts say taking steps like building an emergency fund and contributing to retirement can help those with lower incomes achieve financial stability.

Why it matters

Earning a modest income can present financial challenges, especially in expensive metropolitan areas. However, this data shows that a significant portion of the U.S. workforce falls into this income bracket, highlighting the need for policies and strategies to support financial resilience for low-wage workers.

The details

The Economic Policy Institute analysis of Census data found that over 50 million U.S. workers, or 35% of the working population, earn $20 or less per hour. While this may be considered a living wage in some parts of the country with a lower cost of living, it falls short of what's needed to cover essential expenses in major cities like New York, Boston, Los Angeles and San Francisco. For example, the living wage for an individual with no children is calculated to be $28.87 in New York City and over $30 in San Francisco. However, experts say that even with a lower salary, workers can take steps to improve their financial fitness, such as building an emergency fund and contributing to retirement accounts.

• The federal minimum wage has remained at $7.25 per hour since 2009, though many states and cities have adopted higher minimum wage laws.
• Washington state currently has the highest minimum wage in the country at $17.13 per hour, effective as of January 2026.

What’s next

As more states and cities adopt higher minimum wage laws, it will be important to monitor the impact on low-wage workers and the overall economy.