Even with a strong U.S. labor market and steadily rising nominal wages, millions of American workers continue to earn less than $20 per hour on average. While education level strongly influences income potential, it does not guarantee high pay—or even steady employment—in today’s economy.
Recent data highlights how low-wage workers are distributed across different education levels, revealing persistent income challenges across the workforce.
Low-Wage Workers and Education Levels in the U.S.
According to data from the Economic Policy Institute (July 2025), low-wage work in the United States is heavily concentrated among workers with lower levels of formal education. However, the issue extends beyond those without degrees.
Low-Wage Employment Is Highest Among Less-Educated Workers
Workers who did not complete high school face the highest risk of earning below $20 per hour. Limited access to higher-paying roles and fewer career advancement opportunities keep wages low for this group.
- Nearly two-thirds of workers without a high school diploma earn under $20 per hour
- This equals approximately 6.9 million people in the U.S. labor market
Breakdown of U.S. Low-Wage Workers by Education Level
| Education Level | Share Earning Below $20/Hour | Number of Workers |
|---|---|---|
| Less than high school diploma | 67% | 6,945,000 |
| High school diploma | 43% | 15,884,000 |
| Some college (no degree) | 35% | 12,880,000 |
| College or advanced degree | 12% | 7,217,000 |
| Total | — | 42,926,000 |
High School Graduates Form the Largest Low-Wage Group
Although workers without a diploma face the highest percentage risk, high school graduates make up the largest share of low-wage workers overall.
- 43% of workers with only a high school diploma earn less than $20 per hour
- This group represents nearly 15.9 million low-wage workers, the highest number among all education levels
Some College Education Offers Limited Wage Protection
Completing some college coursework without earning a degree provides only partial protection against low pay.
- More than one-third of workers with some college education earn below $20 per hour
- This affects around 12.9 million U.S. workers, highlighting the importance of degree completion and job alignment
College Degrees Reduce—but Do Not Eliminate—Low Wages
Earning a college or advanced degree significantly lowers the likelihood of low-wage employment, but it does not fully prevent it.
- 12% of degree-holders, or roughly 7.2 million workers, still earn under $20 per hour
- Factors such as industry choice, job role, location, and cost of living strongly influence earnings
Education remains one of the strongest predictors of income in the U.S. labor market, yet it is not a guaranteed path to higher wages. More than 42 million workers across all education levels still earn below $20 per hour. Industry trends, regional economic conditions, and labor demand all play critical roles in shaping wage outcomes.
Addressing low-wage work will require not only education access, but also job quality improvements, skills alignment, and stronger wage standards across industries.
