Child Poverty Rate Dropped in 2000 But Rose for Children in Full-Time Working Families Library: LIF-SOC Keywords: POVERTY CENSUS CHILDREN WORKING FAMILIES CHILDREN'S DEFENSE FUND Description: The number of American children living below the poverty line fell to 11.6 million in the year 2000, the lowest in 20 years, according to data released by the U.S. Census Bureau. The proportion of children in poverty fell to 16.2 percent, or one in six, reflecting economic prosperity that lifted income and rolled back poverty for most Americans. The poverty rate among adults age 18 to 64 also reached its lowest point in two decades.
Overall Child Poverty Rate Dropped in 2000 But Poverty Rose for Children in Full-Time Working Families Weakening Economy and Vanishing Safety Net Also Cloud News of Last Year's Decline in Child Poverty
FOR IMMEDIATE RELEASE September 25, 2001
Contact: Gigi Hinton 202-662-3609
Washington, D.C.--The number of American children living below the poverty line fell to 11.6 million in the year 2000, the lowest in 20 years, according to data released today by the U.S. Census Bureau. The proportion of children in poverty fell to 16.2 percent, or one in six, reflecting economic prosperity that lifted income and rolled back poverty for most Americans. The poverty rate among adults age 18 to 64 also reached its lowest point in two decades.
However, child poverty rose in full-time working families, according to unpublished Census Bureau figures released today. The number of poor children who live in families with a full-time year-round worker rose to 4.1 million in 2000, up from 3.8 million in 1999 -- a rise of 326,000 children -- according to an analysis by the Children's Defense Fund (CDF). "The rise of child poverty in full-time working families presents a challenge," said Deborah Weinstein, CDF's Director of Family Income. "It means we need to rethink how we continue to fight child poverty in this country."
The good news for 2000 was also dampened by more recent reports of mass layoffs and falling employment. CDF also said that a shrinking safety net may leave families more vulnerable to job losses in 2001.
"The good news is that poverty, including child poverty, dropped last year because adults are working harder. They earned their way out of poverty paycheck by paycheck. The bad news is that many of these newly working families remain poor," said Weinstein. "To make matters worse, all these working families have farther to fall because the safety net for jobless families is weaker than it was ten years ago. That means that the current wave of layoffs may leave them very unprotected from serious hardship," she said. Weinstein noted several trends:
* More children in working poor families. The proportion of poor children who live in families where someone worked throughout the year soared to 37 percent in 2000 -- up from 33 percent in 1999 and more than double the proportion in 1991 (18 percent). Among poor families with children, the likelihood of being headed by a full-time year-round worker hit its highest point on record in the 26 years for which these figures exist. This shows that, despite working harder, many low-income parents remained poor.
* Layoffs and unemployment in 2001. Newer Labor Department data show that unemployment rose nationwide and the number of permanent job losses jumped by one-third in the first eight months of 2001, compared with the same period the year before, suggesting that poverty could rise in 2001.
* Weaker safety net for those in greatest need. The welfare caseload has declined by 57 percent nationwide since August 1996. Many families who previously turned to the welfare system to stave off extreme poverty can no longer do so. The number of families with children who lived in extreme poverty (with cash income below one-half of the poverty line) yet received no welfare or similar means-tested cash benefits jumped from 1.0 million in 1995 to nearly 1.2 million in 2000 -- a rise of 16 percent. Whereas a majority of extremely poor families received welfare or similar means-tested cash assistance prior to the signing of national welfare legislation in 1996, only one in three got such help in 2000. For families who need cash assistance in order to avoid extreme poverty, work requirements and other welfare policy changes may be adding to the number who are unable to get that help.
"The outlook for 2001 is clearly worse than for 2000," said Weinstein. "We won't know the 2001 poverty numbers for another year, but we expect child poverty is already rising, along with all the threats to children's health, learning, and well-being that poverty brings."
CDF emphasized that the simultaneous weakening of the labor market and the safety net means that Congress must pay special attention to low-income families as it seeks to stimulate the economy. Appropriate measures would include easing access to unemployment insurance, food and medical assistance, and other parts of the safety net for low-paid workers, CDF said.
(tables attached)
Child Poverty in Working Families: 1989-2000 (Numbers in thousands)
One or More Family Members Worked Full Time Year Round
As % of Total Children Poor Children All Poor Children Poverty Rate
2000 58,267 4,138 37% 7.1% 1999 56,909 3,812 33% 6.7% 1998 55,369 4,302 33% 7.8% 1997 54,074 3,594 27% 6.6% 1996 53,413 3,678 27% 6.9% 1995 52,795 3,899 28% 7.4% 1994 51,340 3,765 26% 7.3% 1993 49,871 3,469 23% 7.0% 1992 48,148 2,929 21% 6.1% 1991 40,621 2,470 18% 6.1% 1990 46,639 2,983 24% 6.4% 1989 46,596 2,820 24% 6.1%
One or More Family Members Worked At All During the Year
As % of Total Children Poor Children All Poor Children Poverty Rate
2000 67,662 8,518 77%
12.6% 1999 67,299 8,932 78%
13.3% 1998 66,294 9,536 74%
14.4% 1997 65,318 9,581 71%
14.7% 1996 64,580 9,471 69%
14.7% 1995 64,076 9,342 67%
14.6% 1994 62,901 9,414 64%
15.0% 1993 61,481 9,163 61%
14.9% 1992 59,813 8,618 62%
14.4% 1991 57,811 8,300 61%
14.4% 1990 57,774 8,052 64%
13.9% 1989 57,083 7,539 63%
13.2%
Source: Unpublished Census Bureau data. Calculations by the Children's Defense Fund.
http://www.newswise.com/articles/2001/9/POVERTY.CHD.html
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