Sixty percent of Americans now describe themselves as “working class,” a label that increasingly includes high earners who say rising costs have made their financial lives feel similar to those of lower-income workers.
A new Pew Research Center analysis, based on a survey conducted in January 2026, found that 60% of U.S. adults say the term describes them well; half of college graduates said the same.
Historically, “working class” has been associated with low-income households, people without four-year degrees, and blue-collar jobs. But the Pew analysis found that half of upper-income adults—those earning above $155,600 annually—also now identify as working class. That income level would have placed someone firmly in the upper middle class in the early 2000s.
The share of people identifying as working class rose from 54% in Pew’s 2024 study to 60% in 2026, a 6-point increase that appeared across many demographic, socioeconomic, and political groups.
Even wealthier and more educated Americans report feeling squeezed as inflation erodes pay and wage growth lags. Everyday purchases such as groceries have become harder to afford, putting the American Dream further out of reach for many.
Affordability has become a central issue ahead of the November midterms, with both parties working to win over working-class voters. Voters have watched gas and diesel prices rise after the Iran war, which has pushed fuel costs to record highs, adding to household strain.
Middle-income and even high earners now report struggles that mirror those long associated with the working class: milestones like homeownership have become more difficult to attain.
An Investopedia study estimated the cost of the American Dream—a suburban home, two children, and a car—at $4.4 million, more than $1 million more than most Americans will earn in their lifetimes.
The National Association of Home Builders reported the median price of a new single-family home in the first quarter of 2026 was $403,200. That marked the fourth consecutive quarter in which existing home prices exceeded new home prices. The typical U.S. homebuyer is now 59 years old, up from 39 fifteen years ago, and the median first-time buyer has climbed to a record 40.
Young people give up on the American Dream
Gen Z graduates have shouldered much of the economic anxiety, carrying record college debt and entering a difficult job market. The New York Fed’s most recent data showed recent graduates were unemployed at a rate of 5.7% in June, the highest in more than four years. Many graduates worry that AI will further unsettle the job market—part of what Fortune has called a “great postponement” of the traditional American Dream.
Only 21% of young people today think the American Dream is achievable for them, down from over 50% a decade ago.
A 2025 Harris Poll found 64% of six-figure earners said their once-high income now feels like the bare minimum to stay afloat. Fortune has tracked how even workers earning $500,000 a year report living paycheck to paycheck, and how six-figure households increasingly say buying a home feels unattainable.
“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, wrote in a statement.
According to the Harris Poll, these top earners are pinching pennies like many lower-income households: 50% have used “buy now, pay later” plans for purchases under $100, and 45% have delayed medical care because of cost. Many also use rewards points for essentials or rely on credit cards to make ends meet.
“The illusion of wealth is exhausting: Many top earners say people assume they can afford it all, yet behind the image of success are quiet sacrifices,” the report explains.
This story was originally featured on Fortune.com.
Source: fortune.com
