Washington, D.C. — Security guards perform essential services to keep people safe at office buildings, stores, and hospitals, but these workers are increasingly facing stagnant wages and limited benefits as businesses contract out security work instead of hiring directly.
A new Center for American Progress analysis of the American Community Survey (ACS) and Quarterly Workforce Indicators (QWI) shows that:
- Security officers’ wages have flatlined over the past 15 years at around $17 per hour, only two-thirds of the median private sector wage, even as the cost of living has soared.
- Approximately 40 percent of security officers do not receive employer-provided health insurance, forcing 18 percent of all officers to rely on Medicaid to support themselves and their families.
- Poor compensation disproportionately affects Black and Hispanic officers, who account for a majority of workers in the occupation but earn around 10 percent less per hour than white security officers.
“These problems create an industry with high turnover that forces hundreds of thousands of workers to depend on public services for basic needs such as health insurance,” said Aurelia Glass, a policy analyst at CAP and author of the analysis. “Pro-worker policies such as wage standards and stronger unions can help improve pay and standards across the industry, which helps ensure that an experienced, well-qualified workforce is there to keep the public safe.”
According to the CAP analysis:
- Security officers employed by contracting firms account for 3 in 5 workers in the occupation.
- Officers employed by contracting firms—a majority of whom are Black or Hispanic—earn around 10 percent less in wages and are 15 percentage points less likely to receive health benefits than security officers who are directly employed by the firm they protect.
- Among contracted workers, working conditions vary by the size of the contracting company, with annual pay at smaller firms 9 percent lower than annual pay at the largest contractors.
- Turnover rates across the industry are more than 50 percent annually, and hiring and retention are concerns for businesses, which depend on skilled and experienced employees to offer effective security.
Read the analysis: “Low Standards Hurt Security Officers’ Ability To Make Ends Meet” by Aurelia Glass
For more information, or to speak with an expert, please contact Sam Hananel at [email protected].