(first article so please bear with me!)

Labor Snapshot- Nov.21

As the year draws to a close, working class Americans continue to confront a labor landscape marked by persistent hurdles. From stagnant wages that fail to keep pace with rising costs to a cooling job market that limits opportunities, these issues affect millions of families striving for stability. This article draws on recent data to outline key challenges, highlighting the need for balanced approaches to support workers without favoring any political agenda. The focus remains on facts that reveal the daily realities for those in hourly jobs, service roles, and manufacturing positions.

A Softening Job Market Amid Economic Uncertainty

The U.S. labor market has shown signs of moderation throughout 2025, shifting from the robust hiring of prior years to a more cautious environment. According to the Bureau of Labor Statistics, total nonfarm payroll employment increased by just 119,000 jobs in September 2025, a figure that reflects little net change since April.

The unemployment rate edged up to 4.4 percent in September, up from 4.3 percent the prior month and the highest in four years.

This uptick signals a softening, particularly for vulnerable groups. For instance, the unemployment rate for Black women rose to 7.5 percent, while overall labor force participation dipped slightly to 62.4 percent.

Job seekers face fewer openings as employers scale back amid economic pressures. Indeed's 2025 Jobs and Hiring Trends Report notes a decline in postings, with hiring rates falling to prepandemic lows of 3.5 percent in August, the slowest since 2011. Sectors like health care and food services added positions, but losses in transportation and federal government offset gains. Over 537,000 individuals exited the labor force in September alone, many discouraged by slim prospects. This trend hits recent graduates and mid-career workers hardest, creating a "low-hire, low-fire" dynamic where jobs exist but competition intensifies.

Inflation adds another layer of strain. Headline consumer price index inflation stood at 3.0 percent in September, outpacing wage growth for many.

Real earnings rose by 1.8 percent year-over-year, but this modest gain erodes quickly against higher costs for essentials like housing and groceries. Workers in service industries, where median annual pay hovers at $33,330, find it increasingly difficult to cover basics in areas requiring a living wage of at least $41,600.

Wage Stagnation and the Erosion of Bargaining Power

For decades, wage growth has lagged behind productivity, leaving working class households with less economic security. The Economic Policy Institute reports that between 1979 and 2025, productivity increased by 64 percent while typical worker compensation grew only 15 percent. This disconnect fuels inequality, as gains concentrate at the top. Non-college educated men, who make up a large share of the working class, saw weekly wages that could have been 8 percent higher had union density held at 1979 levels.

The federal minimum wage, unchanged at $7.25 since 2009, now qualifies as a poverty wage. It falls below the poverty line for a family of two in most states, affecting 22.2 million workers if raised to $17 as proposed in recent legislation. Service workers at retailers like Walmart earn around $17.78 hourly, prompting frequent job-switching for small raises. A "voice gap" persists, with most workers feeling limited input on pay and promotions, especially in low-wage roles.

Union membership offers a counterbalance, boosting covered workers' earnings by 13.2 percent on average compared to similar non-union peers.

Yet private-sector union density has plummeted since the late 1970s, explaining up to one-third of rising male wage inequality.

This decline spills over, suppressing non-union wages and widening racial and gender gaps. Unions also narrow disparities, raising women's pay and reducing Black-white wage differences through collective bargaining

Gaps in Worker Protections and Family Supports

Basic protections remain uneven, leaving many exposed to instability. Paid family leave exists in only a handful of states, forcing workers to choose between family needs and income. The U.S. lags globally, with no federal mandate for paid sick days or comprehensive overtime reforms. Wage theft costs billions annually, as employers underpay or misclassify staff, hitting low-wage sectors hardest.

Child care affordability exacerbates these issues. High costs deter workforce entry, particularly for single parents and women. Programs like Head Start provide relief, but underfunding limits access. Immigration policies further complicate the picture, with over 550,000 Temporary Protected Status workers losing authorization by year's end, potentially worsening shortages in construction and hospitality.

Labor shortages persist in key industries. Manufacturing faces 313,000 unfilled durable goods roles as of April 2025, while service sectors struggle with turnover. These gaps highlight the need for skills training and fair policies to match workers with opportunities.

Paths Forward for a More Equitable Labor Market

Addressing these challenges requires pragmatic steps grounded in evidence. Strengthening enforcement against wage violations could recover billions for workers. Expanding union access might restore bargaining leverage, potentially adding $200 billion annually to middle-class incomes.

Updating the minimum wage and overtime thresholds would lift millions above poverty. Investments in child care and paid leave could boost participation, especially among women and caregivers.

The working class drives America's economy, yet systemic barriers hinder their progress. By prioritizing data-driven reforms, policymakers can foster a market where effort translates to security. As 2025 ends, the call is clear: build a system that rewards labor fairly, for all.

Sources

- Bureau of Labor Statistics. "The Employment Situation -- September 2025." November 20, 2025. https://www.bls.gov/news.release/empsit.nr0.htm

- Economic Policy Institute. "Union Decline Lowers Wages of Nonunion Workers." 2014 (updated trends through 2025). https://www.epi.org/publication/union-decline-lowers-wages-of-nonunion-workers-the-overlooked-reason-why-wages-are-stuck-and-inequality-is-growing/

- Center for American Progress. "In a Stagnating Job Market, Job Seekers Are Struggling To Find Opportunities." November 20, 2025.

https://www.americanprogress.org/article/in-a-stagnating-job-market-job-seekers-are-struggling-to-find-opportunities/

- Indeed Hiring Lab. "Indeed’s 2025 US Jobs & Hiring Trends Report." January 28, 2025. https://www.hiringlab.org/2024/12/10/indeed-2025-us-jobs-and-hiring-trends-report/

- Economic Policy Institute. "The Federal Minimum Wage Is Officially a Poverty Wage in 2025." 2025.

https://www.epi.org/blog/the-federal-minimum-wage-is-officially-a-poverty-wage-in-2025/

- Fortune. "America’s Working Class Barely Scrapes By." January 17, 2025. https://fortune.com/2025/01/13/america-working-class-service-jobs/

- Washington Center for Equitable Growth. "America’s Job-Quality Crisis." September 15, 2025. https://equitablegrowth.org/americas-job-quality-crisis-and-how-to-revive-workers-pay-dignity-job-advancement-and-economic-well-being/

- Penn Wharton Budget Model. "550,000 Workers Lose Status by End of 2025." November 19, 2025. https://budgetmodel.wharton.upenn.edu/issues/2025/11/19/demographic-and-labor-market-profile-of-tps-beneficiaries