Report reveals less than 50% of full-time workers in Philadelphia area earn a living wage.

The struggle to attain a living wage continues to intensify for residents in the Philadelphia area, even for those employed full-time. According to a recent report from Dayforce, a provider of payroll and workforce management software, only 44.3% of full-time workers in the 11-county region, which includes Wilmington and Camden, earn a living wage as of 2025. This figure marks a significant decline from 54.7% in 2021.

The report defines a living wage for a family of four in the Philadelphia region as .88 per hour, based on calculations from the Living Wage Institute. Dayforce’s findings rely on anonymized payroll data and information from the U.S. Bureau of Labor Statistics to provide a comprehensive overview of wage trends in the area. The decline in living wages mirrors a national trend, where 50.7% of full-time workers across the United States earned a living wage last year, down from 55.8% in 2021.

Racial disparities in wage earnings remain stark. The report indicates that 60.4% of white workers and 57.5% of Asian workers achieved a living wage, contrasted by significantly lower percentages of 33.3% for Latino workers and just 31.2% for Black workers. This wage discrepancy underscores the ongoing challenges faced by minority groups in the labor market.

Furthermore, gender contrasts emerge, with U.S. men (58.7%) more likely than women (43.7%) to earn a living wage. Despite some gains in wages for hourly and frontline workers during the pandemic, these improvements have been offset by escalating costs of living, particularly in housing, childcare, and healthcare. Reports indicate that healthcare costs in the Philadelphia area alone have surged more than 50% since 2021.

The challenges extend beyond wage stagnation; more Philadelphia households are now allocating over a third of their income toward rent, with childcare expenses often exceeding rent on average. Retail, caregiving, food service, and hospitality sectors, which employ a majority of hourly workers, bear the brunt of these wage-related issues, as their workers are less likely to attain a living wage compared to salaried employees.

The insights from Dayforce emphasize the necessity for improved wage practices, with experts urging employers to embrace living wages not merely as an ethical obligation, but as a strategic business decision that fosters reduced turnover, enhances productivity, and lowers hiring costs. Amidst these challenging economic realities, the push for equitable and accessible living wages remains crucial for the future viability of the American workforce.