A recent study conducted by the University of Illinois Chicago’s Center for Urban Economic Development reveals that, despite Amazon.com Inc. (NASDAQ:AMZN) raising its minimum wage to $15 an hour five years ago, half of surveyed warehouse workers still find it challenging to afford adequate food or housing.
Published on Wednesday, the national study surveyed US employees about their economic well-being, including issues such as food insecurity, housing instability, and concerns about meeting rent or mortgage payments. Findings showed that 53% of respondents experienced some form of food insecurity in the previous three months, while 48% faced housing insecurity. Workers who took unpaid time off after workplace injuries were more likely to report difficulties in paying bills.
Co-author of the study, Sanjay Pinto, emphasized that while Amazon may not be an outlier in this regard, it’s not leading the way in creating family-sustaining jobs either. Amazon, however, has not provided substantive comments on the survey findings but has criticized previous reports, including an Oxfam study, based on the same research methodology.
Amazon has faced ongoing criticism for its treatment of employees, particularly those working in warehouses, where injury rates have exceeded industry norms. The company has pledged to improve warehouse safety through automation, but concerns persist.
As the second-largest private-sector employer in the US, Amazon’s influence on setting pay and working conditions in the warehousing industry is significant. The survey, which included responses from 1,484 workers across 42 states, found that a third of respondents relied on government-funded programs such as food stamps and Medicaid.
Despite Amazon’s claims of paying competitive wages, with a median US employee salary of $45,613 in 2023, many workers reported wages ranging from $16 to $20 per hour. While 65% of workers earn more at Amazon than at their previous jobs, upward mobility within the company remains limited, with only 13% of workers receiving promotions.
Beth Gutelius, another co-author of the study, described the situation as reflective of declining expectations among American workers regarding employer support. The findings shed light on ongoing challenges faced by workers despite efforts to address wage disparities within the company.
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