For many Americans, having a full-time job is no longer about financial security. Paying for rent, groceries, childcare and transport has become a stretch even for households with two working adults. However, within this difficult picture, one group is showing a small shift, Generation Z.
A tougher reality for full-time workers
Recent findings suggest that just about half of full-time workers in the United States, 50.7 percent now earn enough to meet basic living costs in their area. A few years ago, that share was higher, pointing to a steady erosion in purchasing power.
The divide between types of jobs is striking. Workers on salaries are far more likely to earn enough to get by, while those paid hourly are far less likely to reach that level. The difference shows how income stability, not just employment matters in today’s economy.
A “living wage” is not the same as minimum wage. It represents what a family actually needs to cover essential expenses without external support. And as prices rise unevenly across regions, that threshold keeps shifting.
“Over the past few years, the U.S. labour market has remained relatively stable and resilient,” the report reads. “At the same time, job growth has recently slowed, and millions of workers haven’t seen a meaningful improvement in their financial situation.”
Why Gen Z is standing out
Gen Z workers are moving in a different direction. Their share of people earning a living wage has increased by over six percentage points in recent years.
This improvement is unusual when compared with other age groups. Younger workers just slightly older than Gen Z are seeing declines, and the drop becomes more pronounced with age. For older generations, the fall is sharper, suggesting that experience alone is no longer protecting earning power the way it once did.
Part of Gen Z’s relative advantage may come from timing. Many entered the workforce during a period when employers were competing for talent, offering better starting pay and flexibility. Some have also been quicker to switch jobs or move into sectors where demand—and wages—are higher. Still, their progress does not mean financial comfort. It simply means they are slipping less than others. Even as age trends shift, inequality continues to define who earns enough and who does not.
Men are significantly more likely than women to earn a living wage, and the gap has grown slightly in recent years. Race also plays a major role. A much higher share of white workers meet the living wage mark compared to Black and Latino workers, whose numbers have declined further.
Costs are outpacing incomes
The cost of essentials has climbed sharply, while income growth has not kept pace for many workers. “For many, their earnings are simply not enough to meet the basic needs of their families,” the report reads.
This imbalance is being felt across households, especially those dependent on hourly wages or supporting children. Gen Z’s relative progress offers a rare sign that some workers are managing to adapt. But it is a fragile advantage, shaped by specific economic conditions that may not last. If living costs continue to rise and wage growth remains uneven, the same pressures affecting older workers could eventually catch up with them as well.