# What Is Unskilled Labor and Why Is the Term Outdated?

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## 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"Unskilled labor" is an outdated term that was once used to describe a segment of the workforce associated with a limited skill set or minimal [economic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](https://www.investopedia.com/terms/e/economic-value.asp) for the work performed. The correct term in 2025 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attainment such as having high school diplomas or GEDs and that this typically results in lower wages is also outdated.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](https://www.investopedia.com/financial-edge/0710/experience-or-education-which-one-lands-you-the-job.aspx) 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.

### Key Takeaways

*   Unskilled labor is an antiquated term.
*   Those in the workforce with limited skills aren't necessarily unskilled.
*   It's possible to find a job in 2025 with a GED or a high school diploma.
*   Some jobs call for a strict set of skills or degrees but it's possible to find well-paying work without them.
*   Unskilled laborers were once thought of as workers whose daily production tasks didn't depend on technical abilities or skills.

## Understanding Unskilled Labor

Low-wage laborers provide a significant part of the overall [labor market](https://www.investopedia.com/terms/l/labor-market.asp), 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 when this is the case, offering low to minimum wage as pay.

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](https://www.investopedia.com/terms/m/minimum_wage.asp#:~:text=The%20federal%20minimum%20wage%20rate%20in%20the%20United,the%20rate%20has%20not%20increased%20since%20July%202009.) is $7.25 an hour in 2025. Many cities and states have a higher minimum wage for their workers, however. Twenty-one states raised their minimum wages effective Jan. 1, 2025.  

> **Important**
>
> Certain semiskilled jobs such as those held by administrative assistants can require advanced skill sets that lead them to be categorized as skilled instead of semiskilled positions.

## 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](https://www.investopedia.com/terms/s/skilled-labor.asp) may refer to persons or positions that require a very specialized skill set or advanced degree to complete some of the assigned tasks.

## What Is Minimum Wage?

The federal minimum wage is $7.25 an hour as of 2025.

## What Does Skilled Labor Mean?

All jobs take some measure of skill to perform but skilled labor usually refers to positions that require a very specific skill set to obtain. These might include computer coding, plumbing skills, or a teaching certificate.

## How Many States Have Higher Minimum Wages Than the Federal Rate?

Thirty states and the District of Columbia had higher minimum wage rates than the federal government as of Jan. 1, 2025. The Virgin Islands, Guam, and Puerto Rico also had higher minimum wage rates.

## 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](https://www.investopedia.com/articles/personal-finance/022615/can-family-survive-us-minimum-wage.asp).

> **Article Sources**
>
> 1.  Center for Global Development. "[There's No Such Thing as a 'Low'-Skill Worker](https://www.cgdev.org/blog/theres-no-such-thing-low-skill-worker)."
>     
> 2.  Indeed. "[Skilled, Semiskilled and Unskilled Labor Compared](https://www.indeed.com/hire/c/info/what-is-a-skilled-laborer-unskilled-semiskilled)."
>     
> 3.  U.S. Department of Labor Wage and Hour Division. "[Minimum Wage](https://www.dol.gov/agencies/whd/minimum-wage)."
>     
> 4.  U.S. Department of Labor Wage and Hour Division. "[State Minimum Wage Laws](https://www.dol.gov/agencies/whd/minimum-wage/state)."
>     
> 5.  Economic Policy Institute. "[Over 9.2 Million Workers Will Get a Raise on January 1 from 21 States Raising Their Minimum Wages](https://www.epi.org/blog/over-9-2-million-workers-will-get-a-raise-on-january-1-from-21-states-raising-their-minimum-wages/)."
>     
> 6.  U.S. Department of Labor Wage and Hour Division. "[Consolidated Minimum Wage Table](https://www.dol.gov/agencies/whd/mw-consolidated#:~:text=There%20are%2030%20states%20plus%20the%20District%20of,rates%20set%20higher%20than%20the%20federal%20minimum%20wage.)."