What Is Unskilled Labor and Why Is the Term Outdated?

What Is Unskilled Labor?

"Unskilled labor" is an outdated term that was once used to describe a segment of the workforce associated with a limited skill set or minimal economic value for the work performed. The correct term in 2024 is low-wage labor.

The terms unskilled and skilled were derived from institutions, politicians, and other interest groups, according to the Center for Global Development. A determination has been made as to who is and isn't powerful in the labor market based on these classifications. The idea that the unskilled labor force is characterized by lower educational attainment such as having high school diplomas or GEDs and that this typically results in lower wages is also outdated.

It was assumed that unskilled laborers made less money when they were characterized by lower educational attainment but there are jobs for high school graduates or those without college degrees in the 21st century.

Understanding Unskilled Labor

Low-wage laborers provide a significant part of the overall labor market, performing daily production tasks that don't depend on technical abilities or skills. Repetitive tasks are typical unskilled labor positions. Jobs that can be fully learned in less than 30 days often fall into the low-wage labor category. Low-wage labor jobs may be held by individuals with less education or experience than others.

Employers may take advantage of these workers, offering low to minimum wage as pay, when this is the case.

Low-wage labor refers to the lack of education or experience a person may have when the term is used to describe an employee completing these tasks. The U.S. Department of Labor states the federal minimum wage is $7.25 an hour in 2024 although many cities and states have a higher minimum wage for their workers.

Related Terms

All jobs from babysitters to biology professors require a skill set but some jobs and careers require higher education, certifications, or a certain number of years of experience. Entry-level positions can be low-wage with rising salaries as more experience is gained. Some low-wage jobs only pay federal minimum wage which doesn't often increase on the job despite the use of skills and experience of the low-wage worker. Rising skills and pay may depend on the employer and the position.

Jobs that call for semi-skilled or mid-skilled workers typically require a level of education, knowledge in a particular field, or experience and training to complete the job's tasks successfully.

Skilled labor may refer to persons or positions that require a very specialized skill set or advanced degree to complete some of the assigned tasks.

The Bottom Line

The term "low-skilled" worker is antiquated and not reflective of the present day. Low-wage workers aren't low-skilled workers. They may have plenty of skills but low-wage jobs often don't provide a liveable wage.