Less than 50% of full-time workers in the Philadelphia area earn a living wage, according to a recent report.

In recent years, the feasibility of earning a living wage in the Philadelphia metropolitan area has significantly declined, reflecting a troubling trend characterized by rising costs of living. A new report by Dayforce, a provider of payroll and workforce management software, indicates that only 44.3% of full-time workers in the wider eleven-county region, which includes Wilmington and Camden, were able to earn a living wage in 2025. This figure represents a stark decrease from 54.7% in 2021.

The average living wage required for a family of four in the Philadelphia region has been calculated at .88 per hour, according to the Living Wage Institute. This report combined the institute’s standards with anonymized payroll data and statistics from the U.S. Bureau of Labor Statistics. Such a decline in living wages is not unique to Philadelphia; nationally, 50.7% of full-time workers earned a living wage in 2022, compared to 55.8% in 2021.

Disparities within racial and gender demographics further complicate this issue. In 2022, 60.4% of white workers and 57.5% of Asian workers earned a living wage, contrasting sharply with only 33.3% of Latino workers and 31.2% of Black workers. Additionally, men fared better than their female counterparts, with 58.7% of men making a living wage compared to 43.7% of women.

Of the five major metropolitan areas examined in the Dayforce report, Philadelphia experienced the most significant decline in workers earning sufficient income to meet basic needs, encompassing expenses such as housing, transportation, food, and healthcare. This situation raised concerns among experts, who emphasize the inadequacy of the current living wage as a benchmark merely for survival.

While wages for frontline workers increased during the pandemic, these gains have been mitigated by soaring costs of living. Since 2021, healthcare costs in the Philadelphia region have surged over 50%, with families facing substantial financial burdens related to housing and childcare.

Despite these challenges, some industry experts, including Kavya Vaghul of the Living Wage Institute, argue that the determination of a living wage should motivate employers to reconsider their compensation strategies. Paying a living wage could facilitate reduced turnover, improved employee attendance, and heightened productivity.

The findings of the Dayforce report serve as a crucial reminder of the ever-compounding economic challenges faced by many workers. As the gap between wages and living costs continues to widen, stakeholders are called upon to reevaluate the policies and practices that contribute to this pressing issue. Addressing these disparities is essential not only for individual families but for the overall health of the community and economy.