States with Most Workers Earning Less Than $20 an Hour

Nearly 30% of U.S. Workers Earn Less Than $20 per Hour

The landscape of hourly wages in the United States reveals a significant portion of workers earning less than $20 per hour. This wage threshold is a critical benchmark for understanding economic disparity and labor market conditions across different states. Notably, the data highlights that nearly 30% of U.S. workers fall below this hourly wage, with some states showing particularly high concentrations of low-wage earners.

Why This Matters

Understanding the distribution of low-wage workers is crucial for several reasons. It provides insights into the economic well-being of a significant segment of the population, influences policy discussions around minimum wage and labor regulations, and highlights areas where economic development and job creation efforts may be most needed.

State-by-State Breakdown

The data from the Economic Policy Institute as of July 2025 offers a detailed breakdown of the share of workers earning less than $20 per hour in each state. Here are some key observations:

Highest and Lowest Percentages

• Louisiana leads the nation with 45% of its workers earning less than $20 per hour. This is followed closely by Arkansas at 43%, Oklahoma at 42%, and Kentucky at 41%. These states have the highest percentages of workers in this wage bracket.
• New Hampshire has the lowest percentage, with only 17% of its workers earning less than $20 per hour. This is closely followed by Montana at 14%, Wyoming at 11%, and Hawaii at 11%.

Major Populous States

• Texas has the largest number of low-wage workers, with 5.1 million earning less than $20 per hour. This is significant given Texas's large population and economy.
• California, despite being one of the wealthiest states, has 24% of its workers earning less than $20 per hour. This highlights the economic disparities even within high-income states.
• New York and Pennsylvania each have 38% and 30% of their workers, respectively, earning less than $20 per hour.

Mid-Range States

• North Carolina and South Carolina both have high percentages of low-wage workers, with 40% and 39% respectively.
• Georgia, Oklahoma, Iowa and Connecticut each have between 37% and 39% of their workers earning less than $20 per hour.
• Mississippi has the highest share of low-wage workers, with 52% of its workers earning under $20 an hour. This is a stark indicator of the economic challenges faced by the state.

Regional Trends

The data also reveals regional trends:

• Southeastern States: States like Louisiana, Mississippi, and Arkansas tend to have higher percentages of low-wage workers. This region has historically had lower wages and higher poverty rates.
• Western and Northeastern States: States like New Hampshire, Wyoming, and Montana have some of the lowest percentages of low-wage workers. These states often have higher costs of living but also higher average wages.
• Midwestern States: States like Wisconsin and Minnesota have moderate percentages, indicating a mix of economic conditions. The data suggests that while some Midwestern states have higher wages, others still struggle with significant low-wage populations.

Total Number of Low-Wage Workers

The total number of workers in the U.S. earning less than $20 an hour is approximately 45.2 million. This figure underscores the prevalence of low-wage work and the need for policies and initiatives aimed at improving economic conditions for these workers.

Practical Tips for Understanding and Addressing Low-Wage Work

For policymakers, economists, and advocates seeking to address low-wage work, several practical steps can be taken:

Policy Interventions

• Minimum Wage Increases: Implementing and advocating for higher minimum wages can directly impact the earnings of low-wage workers. This is a contentious issue, but many studies show that modest increases can boost wages without significantly affecting employment.
• Earned Income Tax Credits (EITC): Expanding EITC programs can provide additional financial support to low-wage workers, helping to mitigate the impact of low wages.
• Access to Affordable Healthcare and Education: Improving access to healthcare and education can empower low-wage workers to pursue better-paying jobs and improve their long-term economic prospects.

Industry and Employer Initiatives

• Wage Transparency: Encouraging employers to be transparent about their wage structures can help workers negotiate better salaries and understand their worth in the job market.
• Skill Development Programs: Offering training and skill development programs can help low-wage workers acquire the skills needed to secure higher-paying jobs.
• Fair Scheduling and Benefits: Ensuring that low-wage workers have access to fair scheduling and benefits can improve their overall job satisfaction and economic stability.

Important Takeaways

• Diverse Economic Conditions: The data highlights the diverse economic conditions across different states, with some having a much higher percentage of low-wage workers than others.
• Policy and Industry Role: Policymakers and industry leaders play a crucial role in addressing low-wage work through policy interventions and industry initiatives.
• Regional Trends: Regional trends show that certain areas, particularly the Southeastern United States, have higher concentrations of low-wage workers.

Conclusion

The information on workers earning less than $20 per hour provides a snapshot of the economic realities faced by a significant portion of the U.S. workforce. It underscores the need for targeted interventions and policies aimed at improving wages and economic conditions for low-wage workers. By understanding the distribution and prevalence of low-wage work, we can better address the economic disparities that exist and work towards a more equitable labor market.