Budgeting What Is the Working Class? By Dan Marticio Dan Marticio Dan Marticio is a trusted personal finance writer whose articles and reviews about loans, investing, and small business have appeared on top financial sites including The Balance, LendingTree, ValuePenguin, Fundera, and NerdWallet. learn about our editorial policies Updated on April 25, 2022 Reviewed by Pamela Rodriguez In This Article View All In This Article Definition and Examples of Working Class How Does the Working Class Work? Diversity in the Working Class Criticism of the Working Class What It Means for Working-Class Workers Photo: Reza Estakhrian / Getty Images Definition “Working class” typically refers to a subsection of the labor force that works in the service or industrial sectors and does not hold a four-year college degree. Key Takeaways While there is no universal definition of “working class,” the term commonly refers to workers in the service sector who hold less than a four-year college degree.Historically predominately white and male, the U.S. working class has become increasingly diverse in recent decades.Some common challenges the working class may face include wage stagnation, declining worker power, and meeting the rising cost of living. Definition and Examples of Working Class The term “working class” often typically describes members of the labor force that hold a service-type occupation and do not hold a bachelor’s degree. Common working class occupations include restaurant employees, auto mechanics, construction workers, and other service-type workers. Alternate name: Blue-collar workers Note Defining the working class is highly subjective and can vary by the analyst. Common indicators of membership in the working class include certain levels of annual household income, net worth, and education. For example, let’s say a researcher classifies working-class workers as those who do not hold a college degree and are between the ages of 18 and 64 years old. Sally, who is 33 years old, works as a grocery store clerk, and did not go to college would be considered a member of the working class. How Does the Working Class Work? Many analysts use education level as an indicator of membership in the working class since educational credentials typically do not fluctuate as frequently as income. For example, two employees may have the same degree and hold the same position within a company. However, one employee may not identify as working class because they have worked for the company for 10 years and make 50% more than the other employee. Researchers rely on other indicators, such as net worth, the type of job, or how much autonomy an individual holds in their job position, as well. Generally, the working class works jobs in food and retail, blue-collar work, caregiving, or some type of cubicle position. Some common examples of working-class occupations can include: Factory workersRestaurant workersNursing home staffAutomotive professionalsDelivery services In 2015, the retail industry employed more working-class adults than the manufacturing, minor, and construction industries combined. That same year, the health care industry also experienced a notable increase in working-class jobs. Diversity in the Working Class The racial diversity makeup of the working class has evolved over the years. Around the 1940s, white workers comprised 88% of the working-class labor force. In 2015, this figure dropped to 58.9%, while African Americans and Hispanic Americans made up 13.7% and 20.9% of the working-class labor force respectively. The number of working-class women also increased, comprising 45.6% of the working class in 2015—it was less than 30% in 1940. The Bureau of Labor Statistics projects that the working class, ages 18 to 64 years old, will become the majority people of color by 2032. Criticism of the Working Class As mentioned, there is no universal definition of the working class. Since education, income, occupation, and other factors can vary by the individual, it can be difficult to accurately measure the size and characteristics of the working class. Some say retirement can skew the data if the analyst uses education as a working class indicator. A retired American, for example, may have not held a four-year college degree but do not identify as working class because they are not actually working. Some analysts may still consider those who do not hold college degrees and are unemployed as part of the working class. Note In some cases, researchers may choose to avoid using the term “working class” altogether and instead classify individuals by lower, middle, and upper class. What It Means for Working-Class Workers Working-class workers between the ages of 25 and 54, on average, are more likely to report a concern regarding their financial situation. Some say wage stagnation is a significant factor that affects the financial health of working-class workers, who may not share in the wealth they generate. The rising cost of living exacerbates these financial concerns among working-class workers. Some organizations advocate for laws that increase working power by making it easier to unionize in an effort to increase the quality of industrial jobs. More full employment opportunities, increased public employment, and apprenticeships can potentially also ease the struggles of the working class. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Economic Policy Institute. "People of Color Will be a Majority of the American Working Class in 2032." Accessed Nov. 29, 2021. Center for American Progress Action Fund. "What Everyone Should Know About America’s Diverse Working Class." Nov. 29, 2021. Demos. "Understanding the Working Class." Accessed Nov. 29, 2021. Class Matters. "Working Definitions." Accessed Nov. 29, 2021.