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Economic Anxiety Is Changing Who Americans Consider Working Class

by Rena Tran
July 13, 2026
in Economy
Economic Anxiety Is Changing Who Americans Consider Working Class

The growing appeal of democratic socialism among educated professionals highlights a broader shift in how Americans view class, work, and economic security. While the traditional image of the working class has long centered on manual labor and industrial jobs, recent trends suggest that many salaried employees, including those in technology and other white-collar fields, increasingly see themselves facing similar financial pressures.

Data from a survey of members of the Democratic Socialists of America (DSA) illustrates that change. The findings showed that white-collar workers represented 13% of the organization’s membership in 2021, a notable increase from 3% in 2013, although down from 21% recorded in 2017. The results point to a political movement that is attracting support from professionals alongside more traditional labor groups.

Professional Workers Become a Larger Part of the Movement

The survey found that workers employed in the technology sector accounted for 9% of DSA members in 2021. By comparison, blue-collar occupations represented 4% of membership, while retail, food service, and other service-sector jobs accounted for 6%.

Educational attainment among respondents was also high. More than 80% of members aged 25 and older held bachelor’s degrees, while income levels varied significantly. Nearly half reported household incomes below $60,000, but 28% earned at least $100,000 annually.

The survey predates the rapid expansion of artificial intelligence and the wave of workforce reductions that followed across parts of the technology industry. Since late 2022, major technology companies have announced repeated rounds of layoffs, while hiring for entry-level positions has slowed considerably.

Political momentum has also helped bring greater attention to democratic socialist ideas. The election victory of New York City Mayor Zohran Mamdani and gains by democratic socialist candidates in other races have demonstrated that the movement has expanded beyond its traditional activist base.

At the same time, public confidence in capitalism appears to have weakened. A Wall Street Journal survey reported that 51% of Americans believed capitalism was functioning poorly or not functioning at all, compared with 37% in 2015.

Tech Layoffs and Rising Costs Fuel New Class Debate

The economic backdrop has contributed to changing attitudes about class identity. Following the 2008 financial crisis, many Americans watched major financial institutions receive government support while households struggled with job losses, foreclosures, and declining wealth.

More recently, soaring valuations in technology and artificial intelligence have created enormous wealth for investors and company founders. Yet many workers have experienced a different reality, facing rising housing costs, expensive healthcare, and higher everyday expenses that have outpaced wage growth.

According to the Federal Reserve Bank of New York, unemployment among recent college graduates reached 5.6% in March 2026, above the national unemployment rate of 4.2%. Meanwhile, consulting firm Challenger, Gray & Christmas reported that the U.S. technology sector eliminated roughly 140,000 jobs during the year, the highest total among major industries.

Gustavo Gordillo, co-chair of the DSA’s New York City chapter, told The New York Times that members are taught a broad definition of class. “A lot of tech workers are working class,” he said. “We’re trying to build a broad movement, we think of most DSA members as being working class.”

The Meaning of Affluence Is Being Rewritten

The debate reflects a larger shift in the American economy. Research from the Harris Poll found that 64% of people earning six-figure incomes no longer viewed that income level as a marker of financial success, instead describing it as the minimum needed to remain financially stable.

Many respondents reported considering side businesses, selling personal belongings, reducing food spending, renting out portions of their homes, or exploring debt consolidation options to manage expenses.

This trend may help explain why class identity is becoming increasingly disconnected from educational credentials or salary levels. Economists have long defined class through a combination of income, occupation, and ownership of assets. Today, perceptions appear to be influenced just as heavily by financial security and expectations about the future.

That shift could carry political consequences. As technology workers, professionals, and college graduates face greater uncertainty, movements that emphasize economic protections and worker power may continue attracting support from groups once viewed as firmly middle or upper middle class.

What Comes Next

The key question is whether current economic pressures represent a temporary adjustment or a longer-term change in the labor market. Artificial intelligence, automation, and corporate restructuring continue to reshape employment patterns across industries.

If highly educated workers remain concerned about job stability and affordability, debates over who qualifies as working class are likely to become more prominent in politics, labor organizing, and public policy discussions. The answer may influence how future political movements build support and define economic priorities.

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Rena Tran

Rena Tran

Staff writer and editorial researcher at Millionaire News, a business publication covering entrepreneurs, founders and executives across global markets. Rena covers founder stories, startup ecosystems and emerging business leaders across Asia, the Middle East and beyond.

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