by Randall S. Hansen, Ph.D.
There's been quite a bit of buzz lately about the number of white-collar jobs leaving the
U.S. over the next decade. Forrester Research predicts as many as 3.3 million U.S.
jobs that now pay combined wages of $136 billion will transfer offshore by 2014.
Everything from call-enter work to software development to accounting is shifting to
lower-wage centers in India, China, the Philippines, Brazil and South Africa.
But what about the 30 million workers here in the U.S. stuck in dead-end, low-paying jobs?
How can almost a quarter of the U.S. workforce be invisible? Call them low-wage
workers employed in low-paying, minimal or no-benefit jobs. Call them exploited or the
working poor. Call them living (barely) from paycheck to paycheck with no job security.
Call them under-educated, under-trained, and under-respected. Call them job-seekers
stuck in dead-end jobs. But, whatever you do, do not call them low-skilled or lazy.
According to numerous sources, approximately 30 million workers between the ages of 18
and 64 earn less than $9 an hour in their jobs -- a full-time annual income of $18,800,
assuming a full-time (40 hour week), 52-week work schedule -- the income that marks
the federal poverty line for a family of four. These are folks making somewhere around
the minimum wage ($5.15 an hour for nontipped workers, and $2.13 an hour for tipped workers).
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How Minimum is the Minimum Wage?
The U.S. federal minimum age finally changed -- after almost seven years of
political arguing. It still is the hot potato of American politics.
There's no set time limit for changing the
minimum wage, and in its history -- starting in 1938 -- the minimum wage changed
every couple of years, with the longest gap a nine-year one from 1981 to 1990.
The federal minimum wage for covered nonexempt employees increased to $5.85 per hour
effective July 24, 2007.
The geography: The majority of states also have minimum-wage laws. Ten states
actually having a higher minimum wage than the federal minimum, with Washington
state leading the way at $8.07 an hour. (California and Massachusetts are close
behind at $8.00 an hour.)
Sources: U.S. Department of
Labor: Employment Standards Administration,
AFL-CIO: Minimum Wage.
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The numbers are a little fuzzy because of family size, the number of adults working,
and hours worked per week/month/year. Many of these folks work multiple jobs
just to survive.
Some call it the Wal-Mart Effect, but this situation goes well beyond Wal-Mart and
other retailers. Low-wage workers labor in many industries: retail, hospitality,
healthcare, education, security, agriculture, and manufacturing. The working poor
toil as retail clerks and cashiers, child-care workers, nurses aides, call-center
operators, housekeepers and janitors, food preparation workers, security guards,
farm laborers, sewing-machine operators.
Here's a
specific list of low-wage occupations.
Low-wage workers tend to be white, female, and with limited formal education.
They often work in temporary or part-time positions and many have family responsibilities.
More than half have at most a high-school education, with almost a quarter
only having some high-school education. It's worth noting, however, that minorities
are much more highly represented in the low-wage workforce than the total
workforce, and immigrants are especially likely to land in low-paying jobs.
Here's a
table with a demographic profile of low-wage workers.
These low-wage workers have neither the skills, education, nor power to lobby
for better jobs with better wages -- or even basic benefits or tools for career
advancement. Many of these workers lack healthcare, paid sick days, paid breaks,
and other benefits that most higher-wage workers simply take for granted. Many of
these folks are living on the brink -- one small misstep and they could be deep
in debt and out of work.
These low-wage workers are often treated with little respect by their employers --
whether that means limiting bathroom breaks, forcing workers to soil their clothing,
or simply not taking workplace improvement suggestions from low-wage workers
seriously. There are numerous books on low-wage workers, but one of the most
detailed -- and a bit chilling -- is Beth Shulman's The Betrayal of Work:
How Low Wage Jobs Fail 30 Million Americans.
Here's
a list of publications and books related to low-wage jobs.
Finally, low-wage jobs are not going away. According to a February 2004 report
from the U.S Department of Labor's Bureau of Labor Statistics, 17 of the
20 largest growth occupations over the next eight years (2002-2012) -- resulting
in 6 million new jobs -- require job-seekers with limited education and provide
minimal training -- and are typically identified as low-wage jobs. You can find
the details here: Largest
Growth Occupations: 2002-2012.
Solutions for Low-Wage Job-Seekers
The present and future picture for low-wage workers and job-seekers is
pretty grim, but there are some steps that offer hope for better wages,
better jobs, better benefits, and more job security.
From a career standpoint, low-wage job-seekers can consider these six
activities to move away from these dead-end jobs.
Seek Career Counseling. Many communities around the U.S. have career
resources available at no or a very low cost. Job-seekers can find career
counseling at Career One-Stop Centers. These centers offer all sorts of
help for job-seekers. Find the one in or near your community by using this
service locator.
Job-seekers might also check with local high schools and vocational
schools. Also, some professional career coaches occasionally offer their
services pro bono as a way of giving back to the community. The sooner
you understand and develop a potential career path -- and employers who
will assist you in achieving your goals -- the sooner you will move forward
rather than treading water (or worse).
Identify Transferable Skills. These are skills you have acquired
during any activity in your life -- jobs, classes, projects, parenting, hobbies,
sports, virtually anything -- that are transferable and applicable to what you want
to do in your next job. You may not think being a waitress or a store clerk
provides you with many skills, but you would be wrong. And once you learn
how to better harness the power of the skills you already possess, the better
you will be able to move forward. Go to our
transferable skills
section to learn more about this technique.
Develop Mentoring Relationships. Many studies show that low-wage
workers and job-seekers seem to think that working in these jobs is their fate.
However, with the right encouragement and resources, you may be able to move
beyond a dead-end job. A mentor is someone higher in your organization or
career field who can guide you, help you, take you under his or her wing, and
nurture your career quest. Read
more about finding a mentor.
Build Networking Skills. Having a plan is not enough. To find a better job --
or a job with better benefits -- you will need other people looking out for you. That's what
networking is all about. People you know -- friends, co-workers, former bosses, family,
etc. -- can be an invaluable source of information for you. And whenever possible, you
must work on expanding your network -- through community organizations, classes,
volunteering. Read more about
networking.
Finding the Right Employers. While many employers do not see the likelihood
of dramatically increasing wages for many of these occupations, job-seekers who love
what they do should look for employers who have a corporate culture of respecting all
employees. Research employers who offer career ladders and training or education
benefits for advancement, healthcare and childcare benefits, job flexibility, and
emergency loans or grants to employees in sudden crisis. These employers do exist.
In a report entitled, Increasing the Visibility of the Invisible Workforce: Model
Programs for Hourly and Lower Wage Employees, the Boston College Center for
Work and Family profiles several progressive employers, including: Bank of America,
CVS, FleetBoston, Home Depot, Kodak, Kraft Foods, Levi Strauss & Company,
Marriott International, and Wachovia, as well as a few others.
Read
a copy of the report in pdf format.
Pursue Educational Opportunities. Because continuing education is still
out-of-reach for so many, this solution -- while being an important one -- is currently last.
Furthering your education will bring you more job opportunities. The hurdle, of course, is
how to find the time and money to be able to do so. The best solution may be to find an
employer that invests in its employees through a tuition grant or reimbursement plan.
Studies show that the earnings of less-educated workers have fallen behind those of
more-educated workers.
Political Solutions for Low-Wage Workers
Numerous political solutions are also available to some of the problems facing
low-wage workers, including:
Minimum Wage. Without question, most experts and authors writing
in this field decry the devaluation of the minimum wage -- and they support an
increase in the minimum wage. Many also recommend indexing the minimum
wage so that it rises automatically, thus making it less of a political hot potato.
See our sidebar (above) for more details.
Earned Income Tax Credit (EITC). The EITC is a federal income tax
credit for low-income workers who are eligible for and claim the credit. The credit
reduces the amount of tax an individual owes, and may be returned in the form
of a refund. Many experts call for strengthening and increasing this benefit.
Studies show the EITC is one of the greatest tools for lifting children out of poverty.
Unions. Labor unions have dramatically lost power and members over
the last few decades, mainly as manufacturing jobs have declined. Giving unions
more power in organizing these lower-wage workers and raising them out of the
horrible working conditions just as they did for factory workers decades ago would
be a step in the right direction.
Read
Robyn E. Blumner's column on unions and the working poor.
Living Wage Campaigns. Living wage campaigns seek to pass local
ordinances requiring private businesses that benefit from public money to pay
their workers a living wage. Commonly, the ordinances cover employers who
hold large government service contracts or receive substantial financial assistance
from local governments in the form of grants, loans, bond financing, tax abatements,
or other economic-development subsidies.
Collectives and Associations. Grassroots efforts by various broad
coalitions of people across the U.S. working together to help solve the low-wage
problem and find solutions may be the most politically correct solution.
Find
some of these low-wage and living-wage associations here.
Employer Reform. Employers are free to react to competitive pressures
by reducing compensation, work hours, or benefits. Yet, some employers react to
these pressures by increasing training opportunities and benefits. It all depends
on the employer's values and corporate culture -- as well as outside pressure from
special-interest groups, unions, and governmental agencies.
Final Thoughts
These low-wage jobs are not going anywhere; in fact, they will increase in numbers
over the next decade. The solution is not necessarily to move all workers out of
these positions, but to develop programs for career advancement, to boost earnings
from these jobs to a living wage, to provide safe working conditions, to offer respect
for low-wage workers, and, finally, to offer at least minimal benefits (such as paid
sick days, healthcare, etc.).
Job-seekers, career counselors, governmental agencies, and progressive employers
all working together is the true answer to this extremely tough and inhumane situation
that 30 million American workers face.
Read more about the facts and fictions of low-wage workers in Beth Shulman's
Myths
and Realities About Low-Wage Jobs. Read our review of her book,
The
Betrayal of Work: How Low Wage Jobs Fail 30 Million Americans.
Questions about some of the terminology used in this article? Get more information (definitions and links) on key college, career, and job-search
terms by going to our Job-Seeker's Glossary of Job-Hunting Terms.
Dr. Randall S. Hansen is founder of Quintessential Careers,
one of the oldest and most comprehensive career development sites on the Web, as well CEO of
EmpoweringSites.com. He is also founder of
MyCollegeSuccessStory.com and
EnhanceMyVocabulary.com. He is publisher of
Quintessential Careers Press,
including the Quintessential Careers electronic newsletter,
QuintZine. Dr. Hansen is also a
published author, with several books, chapters in books, and hundreds of articles. He's often
quoted in the media and conducts empowering workshops around the country. Finally, Dr. Hansen is
also an educator, having taught at the college level for more than 15 years. Visit his
personal Website or
reach him by email at randall(at)quintcareers.com.
Take advantage of all the tools and articles on low-wage workers in this section of Quintessential Careers:
Low Wage Jobs: Tools, Statistics, Resources.