In a recent national study conducted by the University of Illinois Chicago’s Center for Urban Economic Development, findings reveal that despite Amazon’s minimum wage raise to $15 an hour five years ago, a significant portion of warehouse employees continue to face challenges affording basic necessities such as food and housing.
The study, co-authored by Sanjay Pinto and Beth Gutelius, surveyed U.S. Amazon employees about their economic well-being, including issues like skipping meals, experiencing hunger, and concerns over meeting rent or mortgage payments. Results indicated that 53% of respondents had encountered some form of food insecurity within the past three months, while 48% had experienced housing insecurity during the same period.
Interestingly, workers who took unpaid time off after workplace injuries were more likely to report financial difficulties with bill payments, highlighting a correlation between health issues and economic strain among Amazon employees.
Sanjay Pinto noted, “It’s not necessarily that Amazon’s an outlier…they’re certainly not taking the lead in creating family-sustaining jobs.”
In response to the study, Amazon spokesperson Steve Kelly criticized the methodology, calling it “deeply flawed” and asserting that the company had unsuccessfully attempted to address their concerns with the researchers. Kelly emphasized that Amazon has raised its average pay to $20.50 an hour and provides comprehensive benefits such as healthcare, dental coverage, 401(k), and pre-paid tuition .
The study also sheds light on Amazon’s ongoing labor issues, particularly concerning the safety and treatment of warehouse employees. Despite Amazon’s efforts to improve workplace safety through automation, concerns persist over injury rates surpassing industry standards .
As the second-largest private-sector employer in the U.S., Amazon holds significant influence over the warehousing industry, impacting pay and working conditions for a sector deeply affected by e-commerce transformations.
The survey, conducted online with 1,484 participants across 42 states, highlighted a reliance on government assistance programs among respondents, with a third reporting recent use of food stamps or Medicaid. These findings reflect similar patterns identified in a 2020 U.S. Government Accountability Office analysis, which identified Amazon as a major employer of individuals receiving food assistance in several states .
Despite claims of improved wages and benefits, the median income for Amazon employees in 2023 was $45,613, with most warehouse and transportation workers earning above $20.50 per hour on average. However, the survey, conducted between April and August 2023, revealed that most respondents reported wages ranging from $16 to $20 per hour .
While many Amazon workers reportedly earn more than they did in previous jobs, advancement within the company remains a challenge. Only 13% of surveyed employees reported receiving a promotion during their tenure with Amazon, highlighting limited opportunities for career progression within the assembly-line style warehouse environment .
The study co-author Beth Gutelius commented, “The story of Amazon is a sad story of the declining expectations of American workers of their employer,” reflecting concerns over the quality of employment and advancement prospects within the company .
The research, funded by the Ford Foundation, Oxfam America, and the National Employment Law Project, underscores the ongoing economic challenges faced by a significant portion of Amazon’s workforce, despite the company’s efforts to address wage disparities and provide benefits.
