Sixty percent of Americans identify as “working class” — including millions of top earners who believe their economic hardships now correspond to a term long reserved for lower earners.
A new one Pew Research Center analysisbased on a survey conducted in January 2026, found that 60% of U.S. adults say the term describes them well, and half of college graduates agree.
“Working class” has long been an ambiguous term for low-income earners, people without four-year degrees, and blue-collar workers. But half of higher-income adults — those making more than $155,600 a year — now also identify as working class, according to the study. This income would have placed her firmly in the upper middle class in the early 2000s.
The numbers are up significantly from two years ago, when the 2024 Pew Research Center study found that 54% of Americans identified with the term “working class.” The researchers found that the 6-point increase persisted across many demographic, socioeconomic and political groups.
Even wealthier and more educated people are feeling the squeeze as inflation continues to squeeze Americans’ paychecks while wage growth fails to keep up. Ordinary purchases like groceries are becoming increasingly difficult to afford, leading to the American dream more out of reach than ever before.
Affordability has become a major topic of discussion in the run-up to November’s midterm elections, with each party trying to woo working-class voters. The cost of living was a key concern for voters who saw their gas bills rise after the Iran war caused gasoline and diesel prices to rise to record highs.
Middle-income and even high earners may now feel that their experiences reflect the struggles traditionally associated with the “working class,” as milestones like purchasing a home become even more difficult to achieve.
A study by Investopedia found that achieving the American dream – a house in the suburbs, two children and a car – costs $4.4 million, more than a million dollars more than most Americans will earn in their lifetime.
According to the National Association of Home Builders, the average price for a new single-family home was $403,200 in the first quarter of 2026. This is the fourth consecutive quarter in which existing property prices have exceeded new construction property prices. The The typical U.S. home buyer today is 59 years oldcompared to 39 just 15 years ago, and the The average first-time buyer has risen to a record 40.
Young people are giving up on the American dream
Generation Z graduates are bearing the brunt of these economic fears, saddled with record college debt and facing a historically difficult entry-level job market. The latest data from the New York Fed shows that these were recent graduates unemployed at a rate of 5.7% in June, the highest in more than four years. Many are worried that AI will make the job market even more uncertain – part of what Fortune described as… “Great shift” of the traditional American dream.
Only 21% of young people today believe the American dream is within their reach, compared to over 50% just a decade ago.
A 2025 Harris Poll found that 64% of six-figure earners said their once-high income was no longer an indicator of success, but the bare minimum needed to stay afloat. It’s a strain Fortune has observed as even workers make money $500,000 a year living paycheck to paycheckand as six-figure households increasingly say Buying a home feels out of reach.
“Our data shows that even high earners are financially anxious — living the illusion of wealth while privately juggling credit cards, debt and survival strategies,” Harris Poll Chief Strategy Officer Libby Rodney wrote in a statement.
According to the Harris Poll, these are top earners Pinch pennies just like many of their lower-income colleagues.
50 percent have used the buy now, pay later plan for purchases under $100 and 45 percent have delayed medical care due to cost. Many also use rewards points to pay for essentials or rely on credit cards to make ends meet.
“The illusion of wealth is exhausting: many top earners assume they can afford anything, but behind the image of success lies silent sacrifice,” the report says.