By Sterling Smith

Plentiful low-wage jobs provide employment opportunities for millions of Americans both young and old. But if we look beneath the surface, we find a system providing little opportunity for economic mobility—a system rife with structural barriers preventing even motivated people from moving up. In this blog post, we diagnose the problem while we examine how and why education and training systems must focus their efforts on supporting workers who are earning low wages.

Millions of Americans work in low-wage, low-quality jobs that offer little or no prospect of advancement, reinforcing our K-shaped economy in which opportunity is available to some, while stagnation defines the lives of many others. Higher education serves as one of the few viable paths out of these jobs. But colleges grapple with misaligned incentives, incomplete data, and pathways that all too often move adults sideways rather than up.

It is a popularly held belief that many of these low-wage jobs are simply entry-level positions and that only individuals who are early on in their careers or in school hold them. In actuality, 27 million prime-working-age (25–54) individuals fill these jobs, with millions more in their 50s, 60s, and older. These adults are not simply biding their time until a good opportunity arises. The majority have been stuck, cycling between jobs that differ in title but not in economic outcome. Data from the Bureau of Labor Statistics (BLS) reveal a stark reality: Child care workers rarely transition into teaching or education leadership roles. Instead, their most common next jobs are retail salespersons, secretaries, and cashiers.

In the service sector, for example, there are very few pathways to better earnings. According to a study in Research in Social Stratification and Mobility, service sector workers who switched into other sectors were more likely to transition into good jobs than were those who stayed with the same employer or moved between jobs within the service sector.

These patterns expose how many commonly presumed pathways do not reliably lead to improved outcomes, underscoring the need for data-informed pathway development grounded in actual outcomes and transition data. Across the spectrum of low-wage work, 6 in 10 workers remain stuck within poorly paid roles after 5 years.

Low-wage, low-quality jobs impose structural barriers that contribute to lateral rather than upward economic mobility. Unpredictable schedules make participation in traditional education and training programs difficult; a 2014 survey found that 40 percent of hourly workers have a week or less advance notice of their work schedules. Incomes in these jobs not only fall below living wages but also are often volatile, forcing many workers to juggle multiple jobs or rely on gig work to fill income gaps. The lack of other benefits, including paid time off, sick leave, and affordable medical insurance, further undermines economic stability and well-being. For adults in these roles, the challenge is not simply low wages but also a set of conditions embedded in these jobs that impede opportunities for advancement.

Education is and has historically proven to be the most reliable pathway forward while providing equal opportunity to all Americans. Data from the BLS show steadily increasing earnings and decreasing unemployment as individuals achieve higher levels of education. Relative to high school graduates, bachelor’s degree holders earned 66 percent more while having a 68 percent lower rate of unemployment in 2024. And while great strides have been made in higher education to serve individuals who are discouraged or stuck in low-wage work, there is an urgent need to accelerate these efforts.

First, academic deans need to lean in to partnering with employers—71 percent of employers agree that there are enough job opportunities for job seekers, but just 43 percent of young adults feel similarly. Bringing employers to the table supports innovative curriculum design, improved outcomes for students, and enhanced understanding of career opportunities.

Second, counselors need to advise students to take leaps, not steps. An evaluation of a workforce development program, Project Quest, found that longer, more advanced training programs resulted in larger and more sustained impacts on earnings.

Third, time matters. College credit policies need to minimize how long it takes for students to get a good job. Research for the Western Interstate Commission for Higher Education shows that credit for prior learning increased credential completion by 22 percent for adult students.

Fourth, faculty need to provide students with tangible information. An analysis conducted for the BLS on career pathways recommends integrating data on career trajectories, worker characteristics, and wage growth into coursework and advising materials.

Most importantly, we must recognize the urgency of the moment. The demographic drought is not a problem for the next decade. For colleges, the paradigm shift has already begun, with a projected 7.4 percent decline in 18 year olds nationally between 2026 and 2030. For millions of Americans trapped in low-wage work, the only way up is out of that system entirely. And for our education and workforce systems, the only way forward is to move beyond familiar models, continue to innovate, and reimagine who we serve and how we serve them.

To see how the Center for Economic Mobility is helping improve outcomes for workers with low wages, review these examples for healthcare and domestic workers.

Sterling Smith equips educators and workforce professionals with insight into their institutions, communities, and economies. His expertise supports more effective strategies, the adoption of high-impact practices, and the development of efficient systems that drive economic vitality for individuals and communities alike. Sterling has a BS in agricultural economics from Washington State University, where he researched how college debt influences entrepreneurship as a career path.