CHALLENGER, GRAY & CHRISTMAS, INC.
DATE November 24, 2004
For Release Upon Receipt
Hunger Becoming A Workplace Issue 8.8 MILLION BELOW POVERTY LINE ARE EMPLOYED
The number of people holding down one or more jobs but unable to make ends meet is rising, a fact which is seeing demand rise sharply at the nation's food banks this Thanksgiving.
In interviews with food banks and through a survey of news reports, global outplacement firm Challenger, Gray & Christmas, Inc., has found that many food banks are in crisis mode as the busiest time of the year for these organizations approaches.
The Ohio Food Bank reports that the number of people requiring assistance has increased 17 percent to 20 percent this year, with a significant increase in the number of working poor.
In Fresno County, California, which is among the country's largest producer of food, the Community Food Bank has gathered more than 1,900 turkeys. That is a large number compared to some areas, but food bank president and chief executive officer Tim Reese told the local newspaper that he would need 5,000 turkeys to meet demand.
New York Newsday reports that food banks in the suburbs of New York City are seeing more working people and families, including middle class workers who simply cannot make ends meet.
Nearly 36 million Americans lived in poverty in 2003, about 1.3 million more than in 2002, according to the United States Census Bureau. For a family of three, the poverty threshold is an annual household income of $14,680. Last year, one in four or 8.8 million of those living in poverty held full time or part time jobs.
"Poverty and hunger are rapidly becoming a workplace issue. It should be a very large concern for the nation's employers, if for no other reason than the fact that an employee who is worried about where his or her next meal will come from is not going to be very productive," said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.
The numbers may not improve much in 2004, based on the latest figures from the Bureau of Labor Statistics. While many quality jobs are starting to be created across most industries, a large number of the new jobs are still being generated in lower-paying hourly wage jobs, including retail, home health care, restaurants, and building services.
The number of Americans working part time for economic reasons stood at 4.7 million in October, near the decade high of 4.9 million set last November. Meanwhile, the number of people trying to make ends meet by working at multiple jobs has grown by more than 500,000 in the last 12 months to 8.0 million.
The All County Churches Emergency Support System in Grand Rapids, Michigan, reported that the number of households it serves grew by nearly 800 in just one month, going from 5,073 in July to 5,850 in August. The non-profit organization's executive director observed that the increase in demand was due in part to middle-class residents seeking food for the first time in their lives.
Jennifer Ebelhar of the Ohio Food Bank, which serves 20 counties in Ohio, told Challenger researchers that there has been a large increase in the number of working poor going to their facilities for food. She attributed some of the increase to rising health care costs.
"There are a lot of instances where families without healthcare are forced to dedicate their money to taking care of someone who is sick. What is left is not sufficient to feed a family. There simply aren't the safety nets there used to be," said Ebelhar.
Making matters worse, many food banks say that the increased demand has come at a time when donations and government funding are at all-time lows. The director of the Trenton (New Jersey) Soup Kitchen told the Associated Press that monetary donations to his organization are flat and that food donations have fallen. Facing a $4 billion budget shortfall, the state of New Jersey allocated just $338,000 for emergency food this year.
Northwest Harvest, which provides food to about 300 food banks in Washington State, said that food donations were down 38 percent from last year.
Having learned of the shortfall, the more than 800 employees at Redmond-based Nintendo opened their cupboards and wallets to donate four tons of food to the nonprofit organization.
"More employers are realizing the importance of addressing poverty and hunger," said Challenger, who personally and through his company, has been a longtime contributor of money, time and food to the Greater Chicago Food Depository.
California Water Service Co., a private water company in San Jose, is distributing about 7,5000 turkeys throughout the state in time for Thanksgiving.
"It is not just about image building for these companies. It is about being a responsible member of the community in which they are located. They also realize that there could be long-term benefits for their bottom lines in that the goodwill helps build loyal customers," said Challenger.