America’s Low-Wage Workers Aren’t All High-School Dropouts

Despite a strong labor market and rising nominal wages, there are still millions of people taking home less than $20 per hour on average.

Education plays a major role in determining earnings, but it does not guarantee high wages—or even employment.

This chart, via Visual Capitalist’s Niccolo Conte, shows the share and number of U.S. low-wage workers earning less than $20 per hour by education level, using data from the Economic Policy Institute as of July 2025.

Low-Wage Work Is Concentrated Among Less-Educated Workers

Workers without a high school diploma face the greatest exposure to low wages. Roughly two-thirds of this group—about 6.9 million people—earn less than $20 per hour, reflecting limited access to higher-paying occupations and fewer opportunities for advancement.

The table below breaks down low-wage workers by education level:

Among workers whose highest education is a high school diploma, 43% earn under $20 per hour. This group represents the largest number of low-wage workers overall, totaling nearly 15.9 million people.

Even some college education offers only partial protection. More than one-third of workers with some college (but no completed degree) earn below the $20 threshold, amounting to 12.9 million workers.

College Degrees Don’t Eliminate Low Wages

Higher education significantly lowers the likelihood of earning under $20 per hour, but it does not eliminate it. About 12% of workers with a college or advanced degree, roughly 7.2 million people, still fall below this pay level.

Overall, while education remains one of the strongest determinants of earnings, income outcomes depend on various factors, including industry mix, regional costs of living, and labor market conditions.

If you found this interesting, explore more labor market and income visuals on Voronoi, including U.S. States With the Most Low-Wage Workers.