American Workers Are Not Paid Enough Wages


In June 2022 average American workers earn an average of $27.45 per hour, in 2000 they made an average of $15 per hour whereas in 1970 same workers were paid an average of $3.88 per hour. Currently, after 1981 inflation rate is high in America but the average salary didn’t go up. A survey pointed out that every two-thirds of an American’s salary was not enough, they have to work extra hours to fulfill their essential monthly needs.

But some economic experts found that wage has grown. Let’s find out below whether American workers are not paid enough wages.


Below you can find out some of the problems Why American Workers Are Not Paid Enough Wages in 2022.

Wage Stagnation

Wages in America stagnated from the early 1970s. But the gap between workers’ productivity and wage increased from 1979. From 1979 to 2000 workers’ productivity grew by almost 62 percent but the hourly wages growth rate was three times lower currently standing at 17.5 percent. Wage stagnation hurts more middle and low earners. From 1979 to 2020 the wage of 90% of people increased by only 28%, wages of 1% of people increased by 179%, and 0.1% of people saw amazing growth of 389.1%.

Usage Of Automation

The use of Automation with Artificial Intelligence is one of the reasons for wage stagnation in America. A report suggested that 45.3 million workers will lose jobs due to Artificial Intelligence in 2030. Automation will play a huge role in manufacturer-type jobs such as making or assembling cars. More skillful people will be needed to handle those machines.

Economists predicted that in the upcoming two or three decades labor-type jobs will be poorly paid because of automation.

Globalization Of Work

Nowadays Globalization of work is another reason for Wage Stagnation. Skillful workers from various parts of the world migrate to the USA to earn in dollar currency. Sometimes those skillful workers can work at a cheap hourly rate, creating unfair competition for American workers.

Labour Dynamism

Experts economists pointed out that nowadays people of the USA are frequently shifting from one job to another, even though job switching leads to strong take-home pay growth. Switching jobs frequently leads to instability in the market. While some people in the USA don’t switch their jobs out of a desire for stability, others can’t because there is no other option. In local markets, many companies use a lack of competition to put down workers’ wages.

Decrease In Worker Union

In recent years the worker union has lost its power over the year. Union membership in the US fell from 20% of American workers in 1983 to just 10.3 in 2021. Workers in unions earn 10.2% more compared to none union workers.

Hike In Price Of Essential Commodities

House rent, gas, food, car, electric bills everything is going up day by day but wages of workers are not growing as fast as the cost of living.


An increase in remote work could be beneficial for wage growth. Any worker with skills can work remotely for any company around the globe and earn a high wage.

Currently, USA is missing strong labour law which is found in other countries. The labor law should not only favour the companies, but it must also ensure a healthy salary, holidays paid sick life, paid pregnancy leave, and pension for workers.

Achieving a fair wage for all Americans ensures the success of the USA Economy. Also, the wages of American workers showcase their skills and productivity. But if wages stagnating becomes an issue for a large number of workers, not a good sign for the country’s economy. It is difficult to emerge as a productive country.

Also Read: Food Is Getting More Expensive In The US In 2022 

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