New report finds 44% of American families struggle to meet basic needs

According to recent joint report by Dayforce and Living Wage Corporation44% of full-time American staff don’t earn enough to cover the basic needs of their family.

The report uses data from 600,000 full-time employees that were analyzed MYTH Living Wage Calculator. The really useful minimum wage in America is context-specific; it varies based on location and value of living. For example, the minimum wage in Sacramento County, California for a pair with two children is $31.43, while the minimum wage in Marshall County, Kansas with the identical parameters is $22.46.

Kavya Vaghul, co-founder and chief product officer of the Living Wage Institute, said: “This report should be a wake-up call. It is very close to what we hear the American public is experiencing in terms of an inflationary environment. Prices for basic goods and services are skyrocketing, and as a result, many people are unable to meet their basic needs.”

Vaghul continued, discussing the impact of the economic climate on women. “For women, there are several factors that drive the report’s findings, all of which are linked to a pernicious history of societal bias, as well as discriminatory and unequal labor market policies that continue to contribute to the gender disparities we see.”

Black and Latino staff also face inequality. They are twice as likely to fall behind than white staff. These two ethnic groups earn $8.20 and $7.70 less per hour than white staff, respectively, representing a major difference in earning potential.

According to Jason Rahlan, vice chairman of corporate responsibility and sustainability at Dayforce, employers have a straightforward solution to the issue: raise wages. Unless, he says, they need to lose talented staff to other corporations.

“People who don’t earn a living wage are more likely to report having trouble paying for housing, overdrawing their checking and savings accounts, skipping health care and buying prescription drugs,” Rahlan said. “When workers are more vulnerable to these negative outcomes, they are more likely to leave the workplace and seek other employment because they need the opportunity to live a healthy, fulfilling and dignified life.”

Rahlan continued, “Companies that decide to invest in their employees and address the minimum wage gap in their workforce are not only doing right by their employees, but they are also smart for their business.”