Two-thirds of American Jobs Pay Less Than $20 Per Hour

The public debate in the US may be about raising the minimum wage to $10 an hour but over 60 percent of American jobs pay under $20 an hour, meaning that the majority of workers are losing ground in terms of household income.

The issue is that rising incomes in developing nations are creating demand for goods and services which were previously too expensive for them. Food items such as milk, meat and some vegetables have accordingly risen in price. This has a double impact on the US economy because it results in families not having enough to meet daily expenses and it results in their eating less healthfully, resulting in increased pressure on the healthcare delivery system.

The longer term effect of this trend is corrosive from the standpoint of competitiveness because it negatively impacts the consumer-driven US economy (and probably has the same effect on other developed western nations). This creates a downward spiral in which there is less capital available for innovation and productive investment.

The policy issue facing US and other governments in similar circumstances is whether it is even possible to now overcome the established long term implications. JL

Kimberly Gedeon reports in Madame Noire:

Almost two-thirds of America’s jobs aren’t paying a cent more than $20 an hour, according to the Bureau of Labor Statistics (BLS). That means 62 percent of the nation’s jobs offer their employees less than $41,600 a year

The BLS report (h/t Horizon Credit Union) notes that the US has 130 million jobs overall.  Of those positions, 18 million pay less than $10 an hour and a startling 63 million pay between $10 and $20. Add it all up and you’ve got 81 million jobs (out of 130 million) paying their workers less than $20. This includes administrative assistants, personal care aides, and retail workers.
Employers that offer a more generous salary, more than $42,000 a year, make up about 38 percent of the nation’s jobs. According to CNN Money, 27 million jobs offer an hourly pay between $20 and $30. That includes plumbers, office supervisors, electricians, and insurance sales agents — all four positions have an hourly pay that hover around $24 an hour, an annual salary of about $50,000.
About 10 percent of America’s jobs shell out between $30 and $40 per hour for its employees. This includes accountants ($65,080), registered nurses ($66,220), financial sales services agents ($72,640), computer programmers ($76,140) and civil engineers ($80,770).
Just seven percent of the nation’s positions places its employees at the upper echelon of the economic class. Ten million jobs offer more than $40 an hour which pays its workers more than $85,000 a year. This includes lawyers ($114,300), air traffic controllers ($121,280), dentists ($146,340), and chief executives ($82,500).