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"The Reality of 'Working Without Reward' - Wage Stagnation Hits the Poorest in the U.S.: The Double Hardship Faced by Low-Income Earners"

"The Reality of 'Working Without Reward' - Wage Stagnation Hits the Poorest in the U.S.: The Double Hardship Faced by Low-Income Earners"

2025年08月05日 00:41

1. Introduction

Workers on the front lines of daily life are puzzled by the administration's official stance that "wages are rising." The latest data from the Atlanta Fed indicates a stark reality: the lowest wage bracket is experiencing the most significant slowdown.


2. "Wage Reversal" in Numbers

  • Group earning less than $806 per week: Growth rate of 3.7% (June 2025)

  • Top income quartile: 4.7%

  • Difference at peak (2022–23): Low-wage +11.5% ⇒ Now less than halfIndeed Hiring Lab

This convergence progresses in a way where "the lower drops significantly, while the higher doesn't fall as much," solidifying the widening gap.


3. Pain Points by Sector

Hiring has stalled mainly in food service, hospitality, and retail. Frontline workers, hailed as "heroes" in the post-pandemic period, were the first to feel the impact of reduced demand.


4. Political Intervention in Data

When employment statistics fell short of expectations, the Trump administration abruptly dismissed the BLS (Bureau of Labor Statistics) director. Opposition parties and economists criticized this as a threat to the independence of statistics.Vox


5. Additional Shocks from Policy

  • Comprehensive tariffs: Long-term impact estimated by the University of Pennsylvania at GDP ▲6%, wages ▲5%Penn Wharton Budget Model

  • Social security reduction plan: Bottom 10% of households expected to lose $1,600 annuallyThe Guardian

These factors further squeeze real income, as "the lower-income bracket has a higher proportion of essentials in their consumption."


6. Black Workers and Regional Disparities

The black unemployment rate is approaching recession levels at 7.2%, with unstable employment rising in NYC.CEPRCenter for New York City Affairs


7. Voices from Social Media

 


PlatformRepresentative ReactionsSource
X"Even if statistics are manipulated, the field remains impoverished" (@duncanbHR)X (formerly Twitter)
X"FT is sensationalist" (@cevaboyz)X (formerly Twitter)
Hacker News"The poorest are always just 'victims'"Hacker News

Regardless of support or opposition, there is an underlying distrust of data.


8. Economists' Perspectives

The conservative Hoover Institution argues that "deportation policies and tariffs hinder productivity improvement," while the liberal CEPR warns that "the slowdown in wages for low-wage restaurant workers is a warning sign."Hoover InstitutionCEPR


9. Voices of the People

Mary, a 28-year-old single mother in California, says, "It seems like hourly wages have increased, but they disappear with rent and food expenses." In her household budget, food costs +10%, gasoline +18%. The wage increase was offset by inflation.


10. Corporate Movements

Major chains are controlling labor costs by introducing AI, effectively freezing starting salaries. Meanwhile, high-value-added personnel are given "inflation adjustment allowances," widening the gap.


11. Future Outlook

  • Expectations for Fed rate cuts are growing, while high prices persist.

  • "Wages and quality of life" are resurfacing as key issues in the 2026 election.


12. Conclusion

The wage gap is an unshakeable trend indicated by macro statistics, policies, and field testimonies in a trinity. It cannot be resolved by "quick fixes" such as statistical manipulation or tariffs; sustainable productivity improvement and the expansion of social safety nets are essential.


Reference Articles

The workers most affected by the slowdown in wage growth are the poorest in the U.S.
Source: https://www.ft.com/content/cfb77a53-fef8-4382-b102-c217e0aa4b25

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