Working class vs. middle class: What’s the difference?

Have you ever thought about what factors play a role in how different families set financial goals? Understanding the working and middle classes helps us see how different families prioritize and plan for the future. But when you start to think about it, do you really know what these terms mean? 

To start, both working class and middle class are terms that describe how people’s jobs, education, and income shape their day-to-day lives. In this blog, we will talk about what the terms mean, the characteristics that make up each class, and the differences between the working and middle class. But we’ll also point out some similarities, too!

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What is the working class?

The working class is generally described as individuals and families who make their living doing hands-on hourly or wage-based jobs, though the exact definition can differ based on region and other demographics. These jobs are often considered manual labor or skilled trade jobs (also known as blue-collar jobs), although not always.

Working-class jobs do not usually require higher education and are often trade-specific or service-oriented. Some examples of working-class jobs include:

• Construction worker

• Restaurant server 

• Retail clerk

• Clerical positions 

• Janitor  

According to Pew Research Center, the working class (also defined as “lower income”) have incomes less than $61,000 annually. About one-third of the working class with jobs in construction, transportation, food preparation and serving, and personal care were considered to be in the lower-income tier in 2022. 

What is the middle class?

The middle class typically refers to people who work in professional positions that often require a college education or other advanced skills. These are what we tend to think of as white-collar jobs. 

Some examples of middle-class jobs include:

• Teacher

• Registered nurse 

• Engineer 

• IT specialist 

• Attorney 

Again, Pew Research Center tells us that income levels in 2022 among middle-class households with three people ranged from about $61,000 to $183,000 annually. Education is also a big factor in identifying the middle class. Fifty-two percent of Americans 25 years old and older who have a bachelor's degree or higher live in middle class households.  

Working-class and middle-class similarities

Although job types, education, and income are common differences between the two classes, there are also many similarities. Hard work, for example, is a common characteristic in both classes. The working class and the middle class may also live in the same communities and face similar challenges, such as rising costs of living, job insecurity, and economic uncertainty. 

Both classes also focus on supporting their families and wanting the best for their children. While income levels may differ, everyone wants to help their kids learn the value of financial planning, which will help them manage their money wisely for the rest of their lives.

How classes are changing

In recent years, the size of the middle class has been shifting, with many families moving to the working class or the upper class. Why is this happening? Well, it’s a mix of things, like the fact that the middle class is aging, so many people are working fewer hours or retiring, which means they’re earning less.

For the working class, changes in the job market and increasing educational requirements have shifted opportunities. Today’s working class is also becoming more and more diverse, with women making up over half of it and people from a range of racial and ethnic backgrounds contributing to its growth.

Ultimately, it’s not about drawing lines between the classes that point out their differences; it’s about recognizing the similarities. Both groups bring the necessary strengths to the table that make society thrive. And no matter where your family fits, teaching kids about hard work, saving, and community is what really counts. 

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