In this article, we will look at the 30 most underpaid jobs in America. We have also discussed the key giants that have been at the forefront of improving salaries for their frontline workers. If you want to skip our detailed analysis, head straight to the10 Most Underpaid Jobs in America.
The Unfortunate, Underpaid Jobs in the US
The sad reality of underpaid jobs in the United States is a pressing issue that continues to persist despite being a long-standing concern. This problem affects millions of hardworking individuals struggling to make ends meet, reflecting a broader systemic issue within the American labor market. Low-wage jobs, often concentrated in industries like retail, fast food, and caregiving, pay meager salaries that do not adequately cover the basic cost of living. These underpaid workers, who are frequently essential to our society, deserve fair compensation for their labor.
In 2023, the US economy faces a deeper crisis than inflation. While inflation may be tackled at the potential cost of a recession, the more significant issue lies in transforming the economy into an oligopoly that sidelines most of its population. This trend has far-reaching consequences for American society and calls for a more comprehensive approach to address economic inequality and empower most citizens. Speaking of income inequality, there also exists a large number of overpaid jobs. For example, there is a strong consensus in the US that CEOs of most corporations have the most overpaid jobs in America.
Big Giants at the Forefront of Pay Increases
Home Depot Inc (NYSE:HD) recently invested $1 billion in increasing hourly wages for its frontline workers, even as its sales outlook for 2023 appeared flat due to decreased consumer spending on home improvement products post-pandemic. The company believes this investment will improve its industry-leading position and help capture more market share. Home Depot Inc (NYSE:HD) is not alone in prioritizing its workers’ pay; Target Corp (NYSE:TGT) had set a new wage range of $15 to $24 an hour for its employees, while Walmart Inc (NYSE:WMT) raised its minimum hourly wage to $14, with an average wage of $17.50 an hour.
This decision to improve salaries can be directly linked to the efficiency wage theory, which suggests that paying higher than minimum wages can lead to increased productivity, employee retention, customer satisfaction, and goodwill compared to competitors. Such investments may eventually result in a more loyal and engaged workforce. While the immediate impact of Home Depot Inc (NYSE:HD)’s billion-dollar pay raise remains to be seen, the company's CEO, Ted Decker, emphasized that it is an investment in taking care of associates, who, in turn, take care of customers.
Apart from salary improvements, Home Depot Inc (NYSE:HD) is currently offering over 150 remote job opportunities at their corporate offices in Atlanta, Georgia, with salaries reaching up to $190,000 per year. These positions span from entry-level to managerial roles, primarily in the technology department, including cybersecurity analysts and software engineers. Requirements vary but generally include 2-5 years of relevant work experience and at least a bachelor's degree. In addition to competitive salaries, Home Depot Inc (NYSE:HD) employees enjoy benefits like pay bonuses, paid parental leave, and discounts on shopping, groceries, and electronics.
Speaking of remote jobs, Target Corp (NYSE:TGT) is maintaining a flexible hybrid work model for its corporate employees, allowing them to choose a "flex your day" approach instead of mandating a full return to the office. While managers can set specific requirements for their teams, employees have the freedom to decide whether to work in the office or remotely on a hybrid schedule. This approach is in stark contrast to companies like Amazon.com, Inc (NASDAQ:AMZN), Meta Platforms Inc (NASDAQ:META), and Goldman Sachs Group Inc (NYSE:GS), which are implementing strict return-to-office mandates.
According to our research, underpaid jobs aren't confined to non-technical sectors; even in technology, disparities exist. High-demand roles like software developers command higher wages due to a shortage of qualified professionals, while entry-level or technical support positions offer comparatively lower pay. Before diving into the list, let's explore what the situation for tech roles looks like today.
Is the Demand for Tech Roles Reduced in 2023?
In 2022, tech salaries in the US witnessed an average increase of around 7%, as there was an increase in demand after the pandemic. However, this salary rise is different across the tech sector. Certain specialized areas like Artificial Intelligence, cybersecurity, and cloud engineering are experiencing higher wage increases due to limited supply.
In contrast, job postings in tech saw a considerable decline, totaling just 204,400 in August 2023, less than a third of the postings for the same period in 2022. While salaries are up in specific instances, there's a broader trend of tech workers having reduced bargaining power.
Moreover, 2023 observed a tech recession as the tech industry lost almost 100,000 jobs in the first half of 2023. Despite these fluctuations, tech employees are placing increasing importance on factors beyond salary, such as career development, work-life balance, and remote work options. To read more about remote jobs, check out our article about best work-from-home jobs in 2023.
The 30 Most Underpaid Jobs in America
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Methodology
For our list of the most underpaid jobs in America, we have tried to include jobs perceived as “thankless”, “undervalued,” or “highly under-compensated for the value they bring or add to society”. We understand that these phrases are subjective, not truly quantifiable and depend on the perception of the individual in question. Hence, after reading several Reddit threads related to such jobs, we have tried to give an overall score to the level of being underpaid. The jobs listed have a mix of all the above indicators, and the scoring is based on consensus out of a total score of 60. A higher score indicates a higher consensus about the job being underpaid.
Here is a list of the most underpaid jobs in America.
30. Door-to-Door Salespeople
IM Score: 20
People often believe door-to-door salespeople are underpaid owing to their job's challenging and often thankless nature, which can involve rejection, long and tiring hours, and low base salaries, leading to the perception that their compensation needs to be improved.
29. Hosts and Hostesses
IM Score: 21
According to BLS, the annual mean wage of hosts and hostesses is$28,380 which is way lower than the minimum wage in the US. Moreover, the fact that they often rely on tips and work irregular hours with sometimes demanding customer service roles adds to this strong belief that these people are underpaid. It is among the most underpaid jobs in America.
28. Dishwashers
IM Score: 22
Dishwashers at restaurants usually have long, exhausting shifts, which can stretch into the late hours and even rob them of summer fun. Moreover, they are often accompanied by low wages that fall below a living standard. The job also comes with them having to endure nauseating and smelly plates and dishes.
27. Postal Service Workers
IM Score: 28
Postal worker pay in the US varies per state but is often considered low due to budgetary constraints and low job requirements. It is one of the most undervalued jobs in America.
26. Parking Attendants
IM Score: 29
Parking attendants generally have minimal training requirements, and their job relies heavily on interpersonal skills. It is one of the most underpaid jobs in America.
25. Dispatchers
IM Score: 30
The dispatcher's job can be highly stressful, with long hours of rotating shifts, and intense workloads. The average salary of a dispatcher in US is $48,350. It is one of the low-paying jobs that deserve a raise.
24. Parole Officer
IM Score: 31
Parole officers are responsible for supervising and rehabilitating individuals with criminal backgrounds, which can be emotionally and physically taxing. It is one of the professions which are highly underpaid in the US.
23. Public Defender
IM Score: 32
Public defenders typically handle heavy caseloads, which can be overwhelming and lead to burnout. Moreover, the compensation for public defenders is generally lower than that of private attorneys.
22. Customer Service Representatives
IM Score: 33
Companies generally prioritize cost-cutting over fair compensation for these positions, leading to low wages. It is one of the notoriously underpaid jobs.
21. Retail Sales Associates
IM Score: 34
Apart from customer assistance, their job involves inventory management and store upkeep. Many retail workers also have irregular hours, limited benefits, and job insecurity.
20. Refuse and Recyclable Material Collectors
IM Score: 35
They are responsible for collecting and disposing of waste and recyclable materials, which can involve heavy lifting and exposure to harsh and unhygienic materials and substances.
19. HVACR Technicians
IM Score: 36
HVACR technicians may be exposed to extreme temperatures while repairing or installing heating and cooling systems. Crawling into tight spaces, working at heights, and handling heavy equipment are common for their jobs.
18. Power Plant Operators
IM Score: 37
Power plant operators are responsible for maintaining and operating complex machinery critical for electricity generation and thus, require extensive training and certifications. It is one of the most underpaid jobs in the US.
17. Fast Food Workers
IM Score: 38
Despite the demanding and fast-paced work environment, opportunities for career growth in this role are limited. These workers often have unpredictable schedules, part-time employment, and inadequate access to healthcare and other essential benefits.
16. Machinists/Tool and Die Makers
IM Score: 39
Machinists and die makers’ jobs require exceptional training and precision. Despite this, their wages may not match the level of expertise, especially when compared to the demands of the job, like operating complex machinery and working with tight schedules while ensuring product quality.
15. Childcare Workers
IM Score: 40
The job is primarily composed of women, many of whom are minorities and lack access to higher education, Moreover, the high cost of childcare services leaves little room for increased wages, as parents are already financially strained. It is one of the most underpaid jobs in America.
14. Welders, Cutters, Solderers, and Brazers
IM Score: 41
These jobs may not require advanced degrees but demand specialized skills and training, which can be costly and time-consuming to acquire. Additionally, they often involve physically demanding work and exposure to dangerous conditions. Underwater welders have one of the most dangerous jobs in the world.
13. News Analysts, Reporters, and Journalists
IM Score: 42
Despite being highly qualified, these professionals have jobs that are often plagued with low salaries and acknowledgment. The demand for 24/7 news coverage can also lead to long hours and stressful working conditions.
12. Cooks
IM Score: 44
The restaurant industry relies on low-wage labor to keep costs and prices competitive. Cooks, particularly those in entry-level positions, are typically paid average wages or slightly below in the US. It is one of the lowest-paying jobs in the US.
11. Construction Laborers and Helpers
IM Score: 46
These jobs typically require physically demanding work in harsh conditions, and workers often lack formal education or specialized skills. It is one of the most underpaid jobs in America.
