Low-Wage America: Here Comes Your AI Replacement.

As of 2025, approximately 39 million U.S. workers earn $17.00 per hour or less, constituting nearly a quarter of the workforce.

These workers are predominantly employed in sectors such as food services, retail, home health care, and other service-oriented industries.

While there have been modest gains in wage growth and legislative efforts to increase minimum wages, many workers continue to face financial challenges due to the rising cost of living and inflationary pressures.

Inflation and cost-of-living increases continue to impact the purchasing power of low-wage workers, even as nominal wages rise.

Total Number of Workers: Over 39 million U.S. workers earn less than $17 per hour, representing approximately 23% of the workforce.

Average Hourly Wage: $16.65
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The following industries have a significant proportion of workers earning $17/hour or less:
1. Food Services and Drinking Places
o Employment: Approximately 13 million workers.
o Wage Range: Predominantly $15–$17/hour.
o Notable Insight: This sector has one of the highest concentrations of low-wage workers.
2. Retail Trade
o Employment: Approximately 15.7 million workers.
o Wage Range: Many positions fall within the $16–$17/hour range.
o Notable Insight: Retail remains a major employer of low-wage workers.
3. Home Health and Personal Care Services
o Employment: Approximately 3.1 million workers.
o Wage Range: Typically $15–$17/hour.
o Notable Insight: Despite the essential nature of their work, many in this sector earn low wages.
4. Childcare Services
o Employment: Approximately 1 million workers.
o Wage Range: Often $14–$16/hour.
o Notable Insight: Childcare workers frequently earn wages below the $17/hour threshold.Reuters
5. Janitorial and Cleaning Services
o Employment: Approximately 2.5 million workers.
o Wage Range: Commonly $15–$17/hour.
o Notable Insight: This sector employs a significant number of low-wage workers.
6. Agriculture, Forestry, Fishing, and Hunting
o Employment: Approximately 1.1 million workers.
o Wage Range: Typically $15–$17/hour.
o Notable Insight: Many agricultural workers earn wages at or below $17/hour.
7. Beauty and Nail Salons
o Employment: Approximately 900,000 workers.
o Wage Range: Often $15–$17/hour.
o Notable Insight: A significant portion of workers in this industry earn low wages.
8. Taxi and Rideshare Services
o Employment: Approximately 500,000 workers.
o Wage Range: Generally $14–$17/hour.
o Notable Insight: Many drivers earn below the $17/hour threshold.
9. Amusement, Gambling, and Recreation
o Employment: Approximately 2.4 million workers.
o Wage Range: Commonly $15–$17/hour.
o Notable Insight: This sector includes a substantial number of low-wage positions.
10. Grocery Stores (Cashiers, Stockers)
o Employment: Approximately 2.9 million workers.
o Wage Range: Typically $15–$17/hour.
o Notable Insight: Grocery store employees often earn wages at or below $17/hour.

By 2030, approximately 11.8 million U.S. workers may need to transition to new occupations due to AI-driven automation.

Low-wage earners are 14 times more likely to be affected by AI-related job displacement compared to higher-wage workers.

At-Risk Occupations: Jobs in food services, customer service and sales, office support, and production work are among the most susceptible, potentially accounting for nearly 10 million of the projected occupational shifts.

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Sources: Bureau of Labor Statistics, Economic Policy Institute, Federal Reserve Bank of America, Statista, Paycom