The Economic Policy Institute’s The State of Working America, 12th Edition now available online »

The State of Working America, 12th Edition shows that the vast majority of American workers have largely been shut out of the nation’s economic growth over the past three decades. The typical American family has added hundreds of extra hours of work each year, while also earning better education credentials, yet is still struggling to keep up—and The State of Working America, 12th Edition explains why.

Incomes for the middle fifth of American households—the heart of the middle class—would have been an average of $19,000 higher per year by 2007 if the share of growth claimed by the richest households had not grown so much over the past 30 years. Likewise, wealth for the typical American family would have been $62,000 higher in 2010 had the growth in wealth over these same years not been overwhelmingly claimed by families at the very top. The research also shows that growing income inequality has not been offset by increased mobility. These trends have not occurred by accident; economic policies have undercut the ability of workers to benefit from economic growth.

Use the links below to jump to any of the chapters, or start with Chapter 1 for an overview. If you’re in a hurry, you can read a 10 minute summary of our key findings.

Overview: Policy-driven inequality blocks growth for low- and middle-income families

How well is the American economy providing acceptable growth in living standards for most households? EPI’s The State of Working America, 12th Edition looks at the data and concludes that the answer is simply “not well at all.”

This is not because the economy has failed to grow. National income has grown enough to substantially improve the fortunes for all. As the data reveal, however, it is the top 5, the top 1, and fractions of the top 1 percent that have received almost all the benefits of the economy’s growth.

Income: Already a ‘lost decade’

Income, which includes resources earned from work, returns on investment, and government transfers and benefits (e.g., Social Security, Medicare, Medicaid, and unemployment insurance), is a key determinant of living standards. A comprehensive look at family and household income reveals that growing inequality has led to economic progress for low- and middle-income families that lags far behind the economy’s potential.

Mobility: Not offsetting growing inequality

Essential to the American Dream is the notion that hard work will create the opportunities to succeed regardless of where you start in life or your race, ethnicity, or gender. However, an examination of mobility—movement up and down the income and living-standards ladder—shows that turning this dream into reality has not been getting easier.

Wages: The top, and very top, outpace the rest

Wages and salaries constitute nearly three-fourths of total family income—a share that is even greater for the middle class. Analyses of wage and compensation trends are central to understanding the living standards of American families. Productivity has marched steadily upward over the last three decades while median hourly compensation has lagged far behind.

Jobs: A function of demand

Employment is the foundation of the standard of living most Americans will enjoy in their working age and retirement. A healthy job market is one where willing workers can find decent employment in a timely fashion. When the job market misfires, it’s not just those who find themselves jobless who suffer; rising unemployment places stiff downward pressure on wage growth even for those workers remaining employed.

Wealth: Unrelenting disparities

Wealth, or net worth, is a key determinant of living standards for American families. While liquid assets help families cope with cash emergencies, tangible assets—such as cars, homes, and computers—provide people with opportunities and allow them to participate in work, school, and community life. Wealth is distributed even less equally than income and has seen rising inequality over time.

Poverty: The Great Recession adds injury to insult

Before the mid-1970s, economic growth in the United States was associated with falling poverty rates. If that relationship had held, poverty rates would be a small fraction of what they are today. The decoupling of rising growth and falling poverty, however, means that Americans are working longer and harder but becoming poorer and less economically secure.

Today, the last 30 years, and the next decade

Today’s employment report from the Bureau of Labor Statistics showed workers dropping out of the labor force, a pace of job growth just enough to keep up with population growth, and a decline in hourly and weekly wages. Today’s numbers are important, but they are just a few data points.

The voluminous research in The State of Working America, 12^th Edition, to be released on Tuesday, September 11^th, proves that America’s workers could have and should have been doing better over the last 30 years. The book explains that the last decade was a lost decade of wage and income growth for most American families, and that the next decade is likely to be lost as well. The book analyzes the latest data on income, mobility, wages, jobs, wealth, and poverty and provides historical context for these analyses. The research persuasively and exhaustively shows that working families would have fared far better over the past 30 years if economic policies had not directed the fruits of economic growth to the wealthiest Americans.

Check back on Tuesday to learn more staggering facts about how America’s workers have fared

Visit the updated site on Tuesday, September 11^th to read the entire book online, study its major findings compiled in reader-friendly fact sheets, and explore all the data and charts.

“EPI provides the most up-to-date information on the economy and the state of working America.”

–Donna Brazile, veteran political strategist and television commentator

“A truly comprehensive and useful book that provides a reality check on loose statements about U.S. labor markets. It should be cheered by all Americans who earn their living from work.”

—William Wolman, chief economist, CNBC’s Business Week

On Tuesday, September 11, the Economic Policy Institute will release the 12th Edition of The State of Working America, EPI’s comprehensive analysis of the economic well-being of America’s workers.

 New books bring EPI’s data to the forefront

With the issue of income inequality occupying an ever-growing space in today’s public discourse, EPI’s research on the topic is at the center of the conversation. For the past 25 years, EPI has documented and analyzed income, wage and wealth inequalities and their impact on the living standards of America’s families.  The upcoming 12^th Edition of The State of Working America analyzes decades of data, including the most up-to-date, to tell the story of inequality and the associated stagnation of incomes, wages and wealth for the vast middle class.

Influential leaders rely on EPI’s data

In recent months, a number of prominent economists and journalists have chronicled the rise of inequality in new books, relying heavily on EPI’s research.  Recent titles include Nobel Prize-winning economist Joseph Stiglitz’s The Price of Inequality, Pulitzer Prize and Emmy Award-winning author and producer Hedrick Smith’s Who Stole the American Dream?, senior editor of The New Republic Timothy Noah’s The Great Divergence, MSNBC host Chris Hayes’s Twilight of the Elites, New York Times columnist and Nobel Prize winner Paul Krugman’s End This Depression Now!, and famed political strategists James Carville and Stan Greenberg’s It’s the Middle Class, Stupid!

“It’s the Middle Class, Stupid!”

In fact, not only did Carville and Greenberg use EPI’s research but the pair asked EPI President Lawrence Mishel to find the most compelling charts that show how low- and middle-income workers have lost ground over the past 30 years and were shocked by what Mishel gave them. The pair wrote: “The totality stopped us cold. The two of us study these problems every day, but looking at that mélange of graphs, we felt like were looking at a different country in a different time.”

Charlie Cook, the famed political reporter, in his review of the Carville/Greenberg book said, “What Mishel produced is deeply disturbing and is alone worth the price of the book—a picture of what many of us sensed had happened, but that is much more dramatic when graphically displayed.”

Only six more days until The State of Working America is released

The twelfth edition of The State of Working America, to be released on Tuesday, September 11, documents the rise of inequality and how it hurts America’s workers.   Bookmark the site now, and come back in a week to get the latest data and analysis.

“The State of Working America remains unrivaled as the most-trusted source for a comprehensive understanding of how working Americans and their families are faring in today’s economy.”

—Robert B. Reich, Secretary of Labor under President Clinton

“No matter what political camp you’re in, this is the single most valuable book I know of about the state of America, period. It is the most referenced, most influential resource book of its kind.”

—Jeff Madrick, author, The End of Affluence

On Tuesday, September 11, the Economic Policy Institute will release the 12th Edition of The State of Working America, EPI’s comprehensive analysis of the economic well-being of America’s workers.

Watch this 1 minute video to see who loves The State of Working America and why

Over the course of many months, the four State of Working America authors have analyzed the latest economic statistics from a wide range of sources covering income, mobility, wages, jobs, wealth, and poverty. In this volume are the bottom-line facts of today, as well as the story of what has happened to the living standards of America’s workers over the last three decades.

EPI has previewed some of the key findings in a series of five reports that explored:

• The decline of entry-level workers’ wages
• The huge divergence between productivity growth and wage growth
• Why the drop in labor force participation is a direct result of the lack of job opportunities
• How the staggering growth of CEO compensation has fueled income inequality
• How the United States has higher poverty rates than other rich countries

Already widespread media coverage

The State of Working America’s findings have garnered widespread attention across major news media outlets, including editorials and news stories in the nation’s leading papers, features in top online news sources and blogs, and on television and radio news shows across the country.

“Until it went online, the latest edition of EPI’s State of Working America was always on my desk, right next to Webster’s Dictionary and the data-filled Economic Report of the President.”

–Steven Pearlstein, Columnist, Washington Post

“For a generation of progressive economic policy makers, we looked forward to the newest edition of the State of Working America in the same way today young people look forward to the newest edition of the iPhone.”

–Gene Sperling, Director of the National Economic Council and Assistant to the President for Economic Policy

Check back on Tuesday, September 11 to find out how policy decisions have limited the wage and income growth of workers and their families.