Workers at top 20 US low-wage firms rely on public assistance, report says

"Collectively, this Low-Wage 20 employs 6.7 million people in the US. The median pay at a majority (75%) of the companies is lower than the income minimum for a family of three to be eligible for Medicaid in most states. At 13 of the companies, median pay was also lower than the Supplemental Nutrition Assistant Program income threshold for a family of three."

"Nearly a quarter of Walmart employees (29.3%) and half of Amazon workers (48.4%) in the Nevada which collects Medicaid enrollment numbers among employees at large companies were on Medicaid in 2024, according to the report. Among the four states that disclose Snap data related to large companies Colorado, Massachusetts, Illinois, and Michigan 10,920 Walmart workers and 9,633 Amazon workers were enrolled in Snap in 2024."

"Had all the companies spent that money to bolster worker pay, the wage of a million workers could have risen from $29,087 to $59,600 the income level needed to afford the average rent for a two-bedroom apartment in the US, noted the report. Instead, average median pay among the Low-Wage 20 declined from 2019 to 2024 when adjusted for inflation."

A report by the Institute of Policy Studies examined 20 S&P 500 corporations with the lowest median wages, collectively employing 6.7 million Americans. At 75% of these companies, median pay falls below Medicaid eligibility thresholds for a family of three. In Nevada, nearly 30% of Walmart employees and 48% of Amazon workers were enrolled in Medicaid in 2024. Across four states reporting data, over 20,000 workers from these companies were enrolled in food assistance programs. Meanwhile, these corporations spent $32.5 billion on stock buybacks in 2024. If redirected to wages, this spending could have raised worker pay from $29,087 to $59,600 annually, sufficient to afford average US rent. Median wages at these companies declined when adjusted for inflation between 2019 and 2024.

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