The Working Poor

“Our nation, so richly endowed with natural resources and with the capable and industrious population, should be able to devise ways and means of insuring to all our able-bodied men and women, a fair day’s pay for a fair day’s work.” 

-President Franklin Roosevelt

Introduction
Many individuals are working for a living but are not receiving a living wage in return for their work. Today, minimum wage is no longer a “living wage.” The other grim reality is that many Americans are working and still living at or below the poverty line. According to the U.S. Bureau of Labor Statistics, the “working poor” are individuals who spent at least 27 weeks in the labor force (working or looking for work) but incomes still fell below the official poverty. Out of the 46.2 million individuals who were living below the poverty line, 10. 4 million individuals are among the working poor. The notion that an individual can work full-time and still remain under the poverty line is something I just cannot fathom. This blog explores who the working poor are, what is being done behind closed doors, and what are some of the solutions, plans of action, and considerations that researchers have proposed.

Who are the working poor?
There appears to be a type of profile of the working poor, when you examine the statistics and research side by side. Although, some argue that the concept of poverty is gender-less, race-less, age-less, etc. I would argue that there appears to be groups and subgroups that are most affected by poverty and often labeled as the “working poor.”

Gender and Race

 Women were more likely than men to be among the working poor (5.5 million vs. 4.9 million). Blacks and Hispanics were more likely than Asians and Whites to be among the working poor. In 2011, 13.3 percent of blacks and 12.9 percent of Hispanics were among the working poor compared to 6.1 percent of whites. 



Age Groups 

Young workers are more likely to be poor than are workers in older age groups. This is in part because earnings are lower for younger workers, and the unemployment rate for young workers is higher.



Education & Occupation 

Individuals who complete more years of education usually have a greater access to higher paying jobs than those with fewer years of education. Despite having a college degree, 2.4 percent of college graduates were classified as the working poor. Also, due to the scarcity of jobs, many college graduates are taking jobs that only require a high school diploma. I would argue that this greatly affects individuals who are not as skilled or experienced because it takes jobs away from them. The likelihood of being among the working poor was lower for individuals employed in management, professional, and related occupations than those employed in lower skilled positions. For example: cashiers, food preparation and service workers, and personal home care aides.



Families 

Among families with at least on family member under the age of 18 years old were about 4 times more likely than those without children to live in poverty. Families maintained by women were more likely than families maintained by men to be living below the poverty level.



What is being done behind closed doors?
There are a lot of things that are going unnoticed or are not talked about in the general public, which is one of the major issues. First, working poor go without many of the things that their counterparts have. According to the United States Department of Labor, about 12 percent of the working have health care. 12 percent of the working poor have retirement benefits, less than 25 percent get paid sick leave, less than 50 percent get paid vacation. Second, workers are not fully getting paid for all of their work. Many low wage workers have part of their earnings stolen by their employers. For example, not being paid full minimum wage, not being paid overtime, and stealing from tipped employees.



What are some solutions, plans of action, and considerations?

There have been many possible solutions, plans of action, and considerations presented by various individuals on both the economic side and education side. First, some individuals propose that the government subsidizes the incomes of low-wage workers. Second, some individuals propose that the government subsidizes the incomes of low wage workers BUT the subsidies are financed by taxing those companies that hire low-wage workers. Third, Dr. Amy Glasmeier of Penn State University even went as far as proposing a “Living Wage Calculator.” This calculator estimates the hourly wage needed to pay the cost of living for low wage families in the United States. Fourth, some individuals propose creating education programs that help individuals attain higher education and skills.



Finding and proposing a solution is one area of this subject that I continue to struggle with. I do not know how exactly to fix the issues of the working poor but I do know that it is something that needs addressed. Many individuals would argue that our nation is a nation that values the work done by its citizens. It is imperative that we dedicate the time and effort in helping the working poor and making work pay. By not addressing this problem, some individuals and families are stalled and restricted to low wage jobs that provide little opportunity for advancement.