As the 80s drew to a close, many workers in America had much to celebrate. Strong unions and a robust economy had brought higher wages, better benefits, and greater job security. But in the years since the landscape has changed dramatically. Today, American workers are facing a host of challenges that their predecessors never had to contend with. Here are nine ways that workers are worse off now than they were in 1980.
Stagnant Wages
One of the most striking changes in the American economy since the 80s has been the stagnation of wages. According to the Economic Policy Institute, wages for the vast majority of workers have barely increased since the late 1970s, even as productivity has continued to rise. This has left many workers struggling to make ends meet, despite working longer hours and holding multiple jobs.
Eroding Benefits
In addition to stagnant wages, workers today are also facing a decline in benefits. Health insurance, retirement plans, and paid time off are all becoming less generous, leaving workers more vulnerable to financial shocks and unexpected expenses. According to a study by the Center for Economic and Policy Research, the percentage of private-sector workers with employer-provided health insurance has fallen from 69 percent in 1980 to just 49 percent in 2016.
Why Did Benefits Stop?
The erosion of benefits for American workers can be attributed to a confluence of factors, ranging from shifts in corporate practices to changes in the economy and policy decisions at the state and federal levels.
The rising cost of healthcare, for instance, has compelled many companies to pare down the scope of their health insurance benefits or pass on a greater share of the cost to workers. Moreover, the growing prevalence of contingent and flexible work arrangements has made it less lucrative for employers to invest in traditional benefits like retirement plans or paid time off.
Meanwhile, corporate practices such as the adoption of “just-in-time” scheduling in retail and service industries can exacerbate workers’ financial insecurity by denying them access to stable work schedules and income streams, making it harder for them to access certain benefits that require a minimum number of hours worked.
Finally, policy decisions at both the state and federal levels have contributed to the erosion of benefits, with some states implementing laws that hinder workers’ access to paid sick leave or family leave, while others have curtailed worker protections or restricted access to unemployment benefits. As such, American workers today are facing a host of challenges that threaten their financial well-being and job security, posing critical questions about the future of work and the role of employers and policymakers in safeguarding workers’ rights and benefits.
Declining Union Membership
One of the key drivers of the strong economy and high wages of the 80s was the strength of labor unions. But since then, union membership has declined sharply, leaving workers with less bargaining power and fewer protections. Today, just 6.3 percent of private-sector workers are unionized, compared to over 20 percent in the 80s.
Why The Decline?
The decline in union membership in the United States over the past several decades can be attributed to a combination of economic, political, and cultural factors. One key factor is the shift away from manufacturing jobs, which have historically been heavily unionized. As the American economy has evolved towards service and knowledge-based industries, there are fewer union-friendly jobs available, thus reducing the potential pool of union members.
Another contributing factor is the trend towards globalization, which has enabled companies to outsource jobs to countries with lower labor costs and weaker labor protections, creating greater competition among workers and diminishing the bargaining power of unions.
Furthermore, anti-union efforts by employers and policymakers have also played a significant role in the decline of union membership. For example, “right-to-work” laws in some states have made it more difficult for unions to collect dues and represent workers, while other policies have weakened unions’ ability to negotiate better wages and benefits for their members.
Finally, changing attitudes among both workers and employers have also impacted the decline of union membership. Some workers may view unions as outdated or unnecessary, while some employers may see them as a barrier to profitability and growth.
Rising Income Inequality
Perhaps the most visible symptom of the decline of the American workforce is the dramatic rise in income inequality. According to research by economist Thomas Piketty, the top 1 percent of earners in the United States now control more than 20 percent of the country’s wealth, up from just 10 percent in the 80s.
The richest 1 percent secured 66% of all new wealth worth $42 trillion created since 2020, almost twice as much money as the bottom 99 percent of the world’s population, according to an Oxfam report released in 2023. In the past decade before 2020, the richest 1 percent had captured around half of all new wealth. So it seems that the trend is nowhere near slowing down… quite the opposite actually.
Why It Matters
The growing income inequality in America is not just a matter of numbers and statistics – it is a matter of life and death. The increasing number of deaths of despair in the country is a tragic consequence of this inequality that has shattered the hopes and dreams of millions of Americans.
These deaths of despair, caused by suicide, drug overdose, and alcohol-related illnesses, are not just isolated incidents but a symptom of a much deeper problem. The widening gap between the rich and the poor is tearing apart the fabric of our society, creating a world where hopelessness and despair are more common than ever before.
It is heartbreaking to see how income inequality leads to social isolation, stress, and anxiety, making people feel disconnected and hopeless. These factors can trigger mental health issues that lead to depression and other illnesses, which are among the major risk factors for deaths of despair.
The inequality in access to healthcare is another factor contributing to the deaths of despair. People living in poverty have limited access to healthcare, which can lead to untreated illnesses, including mental health conditions. These untreated illnesses can significantly increase the risk of deaths of despair.
Finally, the opioid epidemic, which has been responsible for a significant portion of deaths of despair, has its roots in income inequality. People living in areas with high levels of income inequality are more likely to experience economic stressors, which contribute to opioid addiction.
We must recognize that the growing income inequality in America is a serious threat to our society and a major contributor to the rising incidence of deaths of despair. We must take steps to address the root causes of this problem, including reducing income inequality, providing access to affordable healthcare, and tackling the opioid epidemic. It is only by taking decisive action that we can hope to restore hope and opportunity to the millions of Americans who are suffering from the effects of income inequality.
Increasing Job Insecurity
As companies have become more focused on short-term profits and shareholder value, they have increasingly turned to precarious and contingent labor arrangements. Today, temporary and contract workers, freelancers, and gig economy workers make up a larger share of the workforce than ever before, leaving many workers without the stability and security of traditional employment.
2023 marked the most layoff-fueled era since the dotcom crash in 2001, with nearly 300,000 workers impacted since the beginning of the year. We have seen numerous accounts of women who lost their job in the very midst of giving birth while others were notified via email that they would not be returning to work after their medical leave.
Job insecurity isn’t just a minor inconvenience – it’s a significant threat to people’s emotional and physical wellbeing. Research has found that experiencing job insecurity can lead to feelings of stress, anxiety, and depression, all of which can have a devastating impact on one’s quality of life. These negative emotions can also have physical manifestations, including headaches, fatigue, and sleep problems.
When workers come to the realization that they are one short Zoom call from being homeless, it can be emotionally jarring. The idea that their job security is not guaranteed can be extremely unsettling, and the knowledge that this insecurity can have long-lasting effects on their mental and physical health can be even more distressing. This can lead to a range of emotions, including fear, anger, and sadness, which can all have an impact on their overall wellbeing. The research highlights the need for employers and policymakers to take job insecurity seriously and address its impact on workers’ lives.
Stagnating Social Mobility
The American Dream of upward mobility and opportunity for all is becoming increasingly elusive. According to research by the Pew Charitable Trusts, the percentage of Americans who earn more than their parents did at the same age has fallen from 90 percent in 1970 to just 50 percent today.
Stagnating social mobility is a deeply troubling phenomenon that is causing immense harm to individuals and society as a whole. The fact that people are increasingly unable to improve their economic status and move up the income ladder is a crushing blow to the American Dream of equal opportunity and upward mobility.
For individuals, the impact of this phenomenon is devastating. People are trapped in low-wage, dead-end jobs with little hope of improvement or advancement. They struggle to make ends meet, unable to provide their families with basic necessities, let alone invest in their futures. The lack of financial security and opportunity is heart-wrenching, leading to stress, anxiety, and a sense of hopelessness.
Moreover, stagnating social mobility exacerbates social and economic inequalities, with communities of color often being the hardest hit. It perpetuates a cycle of poverty, depriving people of the chance to achieve their full potential and contribute to society in meaningful ways. This injustice is a betrayal of the American promise of equal opportunity and a just society.
At the societal level, stagnating social mobility has far-reaching consequences. It stunts economic growth and innovation, as talented individuals are unable to pursue their dreams and contribute to the economy. It also leads to social and political polarization, as people become disillusioned with the system and its inability to deliver on its promises. The erosion of the American Dream undermines our faith in our shared values and ideals, threatening the very fabric of our society.
We must not accept this state of affairs. We must fight for a society that provides opportunities for all, regardless of their background or circumstances. We must work to break down the barriers to success and create a system that rewards hard work and dedication. Only then can we truly live up to the promise of the American Dream and create a just and equitable society for all.
Strained Work-Life Balance
Despite the promise of technology to make our lives easier and more efficient, many workers today find themselves working longer hours than ever before. This has led to a strain on work-life balance, with many workers struggling to juggle the demands of their jobs with their personal lives and responsibilities.
The Rise of Hustle Culture
Hustle culture is a dangerous phenomenon that not only promotes overworking but also actively undermines the idea of work-life balance. By glorifying the “hustle,” this mentality makes it seem as though sacrificing personal time and health is a necessary requirement for success. However, this approach not only leads to burnout and a decline in mental health, but it also makes it challenging to maintain a healthy work-life balance.
The pressure to constantly perform and put work first can create a vicious cycle that perpetuates a workaholic mindset, leaving little room for rest and relaxation. The constant stress and pressure can lead to feelings of anxiety, depression, and even physical health problems. The idea that one must sacrifice their well-being to achieve professional success is a damaging myth that only serves to reinforce the existing strain on work-life balance.
Ultimately, hustle culture must be rejected in favor of a more balanced approach to work and life. We must recognize the value of rest, relaxation, and self-care in achieving professional and personal success. It’s time to acknowledge that a healthy work-life balance is not only necessary for individual well-being but is also critical for the long-term success of businesses and the economy. By prioritizing self-care and work-life balance, we can create a more sustainable and fulfilling way of working that benefits everyone.
Diminished Worker Protections
Over the past few decades, the legal protections for workers have been eroded, leaving many vulnerable to discrimination, harassment, and unfair treatment. The Supreme Court’s recent decision in Epic Systems Corp. v. Lewis, for example, has made it easier for employers to force workers into arbitration rather than allowing them to bring collective actions in court.
Elected officials have recently made pushes to rollback bills that had prevented child labor, one such occurrence is in the state of Arkansas. Labor rights appear to be declining globally.
Despite diminishing work protections, you still have some rights. We recommend you read this article to see what your options are if you have been wronged by an employer.
Growing Student Debt
As the cost of higher education has skyrocketed, many workers are now burdened with crushing levels of student debt. According to the Federal Reserve, the total amount of student debt in the United States has risen from $240 billion in 2003 to over $1.7 trillion in 2021. This debt burden can have long-lasting effects on workers’ financial stability, limiting their ability to save, invest, or purchase homes. It also exacerbates existing inequalities, as workers from lower-income families are often forced to take on more debt to access the same educational opportunities as their wealthier peers.