Economy 4 min read By Callum Montgomery
Half of Americans Earning Over $155,600 Now Call Themselves Working Class
A new Pew Research Center analysis finds 60% of US adults identify as working class, with half of upper-income earners above $155,600 a year also claiming the label as inflation erodes purchasing power and homeownership slips out of reach.
Six in ten American adults now describe themselves as working class, and the label is no longer confined to low-income households. A new Pew Research Center analysis, based on a survey conducted in January 2026, found that half of upper-income adults — those earning more than $155,600 a year — also say the term describes them well. That salary would have placed them firmly in the upper middle class in the early 2000s.
The finding marks a six-point rise from the Pew Research Center's 2024 study, when 54% of Americans identified with the term. Researchers found the increase held across many demographic, socioeconomic and political groups, including half of college graduates. The shift suggests that the affordability crisis has spread well beyond the households traditionally associated with the working class.
Inflation continues to erode paychecks while wage growth fails to keep pace, making ordinary purchases such as groceries harder to afford. The cost of living has become a central concern for voters ahead of November's midterm elections, with both parties competing to court working-class voters. Gasoline and diesel prices reached record highs after the Iran war, adding to household strain.
Milestones that once signalled middle-class security are increasingly out of reach. A study by Investopedia found that achieving the American Dream — a house in the suburbs, two children and a car — now costs $4.4 million, more than $1 million above what most Americans will earn in their lifetimes. The median price of a new single-family home in the first quarter of 2026 was $403,200, according to the National Association of Home Builders, the fourth consecutive quarter in which existing home prices exceeded new home prices. The typical US homebuyer is now 59 years old, up from 39 just 15 years ago, while the median first-time buyer has climbed to a record 40.
Younger Americans have borne the brunt of the squeeze. Gen Z graduates carry record college debt and face a historically difficult entry-level job market. The most recent data from the New York Fed showed recent graduates unemployed at a rate of 5.7% in June, the highest in more than four years. Many are anxious that artificial intelligence will make the job market even more uncertain. Only 21% of young people today believe the American Dream is achievable for them, down from more than 50% a decade ago.
The anxiety extends to six-figure earners. A 2025 Harris Poll survey found that 64% of those earning six figures said their once-high income is no longer a marker of success but the bare minimum to stay afloat. Half have used «buy now, pay later» plans for purchases under $100, and 45% have delayed medical care because of the cost. Many also use rewards points to pay for essentials or rely on credit cards to make ends meet.
«Our data show that even high earners are financially anxious — they're living the illusion of affluence while privately juggling credit cards, debt, and survival strategies,» Libby Rodney, the Harris Poll's chief strategy officer, said in a statement. The report describes the illusion of wealth as exhausting, noting that many top earners say people assume they can afford it all, yet behind the image of success are quiet sacrifices.
The Pew findings underline how far the affordability crisis has travelled up the income scale. A label long reserved for low-income and blue-collar workers is now claimed by households that would once have been considered comfortably upper middle class, a shift with clear political consequences as the midterms approach.
