"Unskilled labor" is an outdated term that was once used to describe a segment of the workforce associated with a limited skill set or minimal economic value for the work performed.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attainment such as having high school diplomas or GEDs and that this typically results in lower wages is also outdated.