Current:Home > FinanceHalf of Amazon warehouse workers struggle to cover food, housing costs, report finds -ProfitQuest Academy
Half of Amazon warehouse workers struggle to cover food, housing costs, report finds
View
Date:2025-04-12 19:35:03
Roughly half of frontline warehouse workers at Amazon are having trouble making ends meet, a new report shows. The study comes five years after the online retailer raised minimum hourly wages to $15.
Fifty-three percent of workers said they experienced food insecurity in the previous three months, while 48% said they had trouble covering rent or housing costs over the same time period, according to a report from the Center for Urban Economic Development at the University of Illinois Chicago. Another 56% of warehouse workers who sort, pack and ship goods to customers said they weren't able to pay their bills in full.
"This research indicates just how far the goalposts have shifted. It used to be the case that big, leading firms in the economy provided a path to the middle class and relative economic security," Dr. Sanjay Pinto, senior fellow at CUED and co-author of the report, said in a statement Wednesday. "Our data indicate that roughly half of Amazon's front-line warehouse workers are struggling with food and housing insecurity and being able to pay their bills. That's not what economic security looks like."
Despite working for one of the largest and most profitable companies in the U.S., Amazon warehouse employees appear to be so strained financially that one-third has relied on at least one publicly funded assistance program, like the Supplemental Nutrition Assistance Program, or SNAP. The report's data reveals what appears to be a gulf between what these workers earn and any measure of economic stability.
The researchers included survey responses from 1,484 workers in 42 states. The Ford Foundation, Oxfam America and the National Employment Law Project backed the work.
Linda Howard, an Amazon warehouse worker in Atlanta, said the pay for employees like herself pales in comparison to the physical demands of the job.
"The hourly pay at Amazon is not enough for the backbreaking work ... For the hard work we do and the money Amazon makes, every associate should make a livable wage," she said in a statement.
The report also highlights the financial destruction that can occur when warehouse workers take unpaid time off after being hurt or tired from the job.
Sixty-nine percent of Amazon warehouse workers say they've had to take time off to cope with pain or exhaustion related to work, and 60% of those who take unpaid time off for such reasons report experiencing food insecurity, according to the research.
"The findings we report are the first we know of to show an association between the company's health and safety issues and experiences of economic insecurity among its workforce," said Dr. Beth Gutelius, research director at CUED and co-author of the report. "Workers having to take unpaid time off due to pain or exhaustion are far more likely to experience food and housing insecurity, and difficulty paying their bills."
Amazon disputed the survey's findings.
"The methodology cited in this paper is deeply flawed – it's a survey that ignores best practices for surveying, has limited verification safeguards to confirm respondents are Amazon employees, and doesn't prevent multiple responses from the same person," a spokesperson for Amazon said in a statement to CBS MoneyWatch.
The company added that its average hourly pay in the U.S. is now $20.50.
In April, the company criticized earlier research from the groups that focused on workplace safety and surveillance at Amazon warehouses.
"While we respect Oxfam and its mission, we have strong disagreements with the characterizations and conclusions made throughout this paper — many based on flawed methodology and hyperbolic anecdotes," Amazon said in part of the earlier research. Amazon also cast doubt on the veracity of the responses used in the Oxfam report; the company said it believed researchers could not verify that respondents actually worked for Amazon.
Megan CerulloMegan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
veryGood! (97911)
Related
- As Trump Enters Office, a Ripe Oil and Gas Target Appears: An Alabama National Forest
- James Lewis, prime suspect in the 1982 Tylenol murders, found dead
- Intense cold strained, but didn't break, the U.S. electric grid. That was lucky
- These Drugstore Blushes Work Just as Well as Pricier Brands
- Person accused of accosting Rep. Nancy Mace at Capitol pleads not guilty to assault charge
- Sony says its PlayStation 5 shortage is finally over, but it's still hard to buy
- Father drowns in pond while trying to rescue his two daughters in Maine
- At a French factory, the newest employees come from Ukraine
- Meet the volunteers risking their lives to deliver Christmas gifts to children in Haiti
- Fighting Attacks on Inconvenient Science—and Scientists
Ranking
- Person accused of accosting Rep. Nancy Mace at Capitol pleads not guilty to assault charge
- Senate 2020: In Colorado, Where Climate Matters, Hickenlooper is Favored to Unseat Gardner
- The economics lessons in kids' books
- The fate of America's largest lithium mine is in a federal judge's hands
- Arkansas State Police probe death of woman found after officer
- Buying a home became a key way to build wealth. What happens if you can't afford to?
- UFC Fighter Conor McGregor Denies Sexually Assaulting Woman at NBA Game
- Coinbase lays off around 20% of its workforce as crypto downturn continues
Recommendation
South Korea's acting president moves to reassure allies, calm markets after Yoon impeachment
Judge rejects Justice Department's request to pause order limiting Biden administration's contact with social media companies
Indiana Bill Would Make it Harder to Close Coal Plants
Billions in NIH grants could be jeopardized by appointments snafu, Republicans say
Paris Hilton, Nicole Richie return for an 'Encore,' reminisce about 'The Simple Life'
A Lawsuit Challenges the Tennessee Valley Authority’s New Program of ‘Never-Ending’ Contracts
New Arctic Council Reports Underline the Growing Concerns About the Health and Climate Impacts of Polar Air Pollution
Meeting the Paris Climate Goals is Critical to Preventing Disintegration of Antarctica’s Ice Shelves