Living Wage Is Falling For All Americans - Except Gen Z
Summary
A new report shows that fewer than half of U.S. full-time workers earn enough money to cover basic living costs in 2025. While most age groups see a decline in earning a living wage, workers in Generation Z are an exception with improvements. The report also highlights ongoing gaps in wages between genders and races.Key Facts
- In 2025, 50.7% of full-time workers earn a living wage, down 5.1 points from 2021.
- Full-time salaried workers are more likely (83.1%) to make a living wage than hourly workers (30.3%).
- The living wage covers housing, food, childcare, and transportation costs, and varies by location and family size.
- Generation Z workers have increased their share earning a living wage by 6.2 points since 2021.
- Other age groups, including Millennials, Gen X, and Baby Boomers, have seen declines in living wage earnings.
- Men are more likely than women to earn a living wage, with a 15 percentage point gap (58.7% vs. 43.7%).
- White workers earn a living wage at nearly twice the rate of Black (31.2%) and Latino workers (33.3%).
- Rising costs of living have outpaced wage growth, making it harder for many workers to cover basic needs.
- Living wage requirements vary widely by state, from about $20 per hour in West Virginia to over $50 per hour for families in states like California and Hawaii.
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