Dayforce | 2024 Dayforce Living Wage Index (2024)

PAY EQUITY & TRANSPARENCY

Dayforce | 2024 Dayforce Living Wage Index | The 2024 Living Wage Index, published by Dayforce, explores wage disparities in the U.S. workforce. It reveals that 44% of full-time workers must earn more to cover basic needs. Women, Black, and Latino workers are disproportionately affected, and specific industries like leisure, hospitality, and retail face significant wage challenges.

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Introduction

The 2024 Dayforce Living Wage Index reveals the widespread issue of full-time workers in the U.S. struggling to meet basic needs, with only 56% earning a living wage. The report highlights income disparities across gender, race, geography, and industry, providing critical insights into the state of salaries in the American workforce.

Key Insights

• Living Wage Shortfall: Despite being one of the wealthiest nations, 44% of full-time workers in the U.S. do not earn enough to cover basic living expenses, based on a family model with two working adults and two children.

• Gender Disparity: Women are disproportionately affected, being 32% more likely than men to earn below a living wage. On average, women earn $4.20 less per hour than men.

• Racial and Ethnic Gaps: Only 40% of Black and Latino workers earn a living wage, making them nearly twice as likely as white workers to fall below this threshold. Black and Latino workers earn $8.20 and $7.70 less per hour, respectively, compared to white workers.

• Geographic Variations: In major cities like Miami, Phoenix, Los Angeles, and New York, more than 40% of full-time workers do not earn a living wage. The problem is more pronounced in some metropolitan regions, with up to 63% of Washington, D.C. and Houston workers earning above the living wage.

• Industry-Specific Challenges: Low-wage jobs are concentrated in specific sectors. Nearly 70% of leisure and hospitality workers, 64% of retail workers, and more than half of healthcare workers do not earn enough to meet basic needs.

Recommendations

• Adopt Living Wage Policies: Employers should reassess their wage structures to ensure workers are compensated fairly. Introducing a living wage policy could significantly improve employee well-being and reduce turnover, especially in hospitality, retail, and healthcare industries where wage shortfalls are most severe.

• Address Gender Pay Gaps: Organisations must actively monitor and rectify gender-based wage discrepancies. Implementing transparent pay scales and promoting equitable advancement opportunities could help bridge the gender wage gap.

• Support Minority Workers: Targeted efforts like wage adjustments and professional development programs should be introduced to mitigate racial inequality. Providing mentorship and career growth pathways for underrepresented groups can foster long-term wage equity.

• Tailored Solutions for High-Cost Areas: Companies operating in high-cost cities should consider cost-of-living salary adjustments. Localised wage benchmarks can ensure workers in expensive metropolitan areas earn enough to cover living expenses.

• Industry-Specific Strategies: Employers in industries with low wages, such as hospitality and retail, should explore wage enhancements coupled with benefits like flexible scheduling and healthcare support to attract and retain talent. Investment in employee training and career progression can also enhance job satisfaction and earnings potential.

Conclusion

The 2024 Living Wage Index reminds us of the wage disparities affecting nearly half of the U.S. workforce. By addressing these gaps, employers can foster healthier, more productive workplaces, ensuring their employees survive and thrive. Taking action on living wages, particularly in the most affected industries and demographics, is crucial to achieving a more equitable and sustainable workforce.

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