More than 40 per cent of US workers in key manual industries work for ‘garnished’ wages, due to child support and other financial liabilities.
That is the conclusion of a new study from the ADP Research Institute. Garnished salaries have had payments automatically deducted.
The Institute analysed payroll data from 2013. A total of 13 million employees aged over 16 were covered.
The results indicated that a significant majority of employees working for garnished wages are employed in ‘blue collar’ manual jobs. Forty-eight per cent of all workers in manufacturing have had wages garnished, along with 42 per cent of those working in transportation and utilities. By contrast, only 23 per cent of those working in such ‘white collar’ sectors as education, financial services and business have had wages garnished.
On a national level, 7.2 per cent of all US workers have had payments automatically deducted from their salary. More than 40 per cent of such payments were for child support, while a little under 20 per cent were for tax debts.
According to the report, workers whose wages are garnished often feel humiliation and stress, and are less motivated and less productive as a result.
While 5.8 per cent of male workers have had wages garnished for child support payments, only 0.6 per cent of females have had wage reductions for the same issue.
Julie Farraj of ADP said:
“Raising awareness about garnishments can help employers and employees work together to manage what sometimes can be a difficult process.”
Click here to download the full report.