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NC Budget and Tax Center, Poverty and Income Data 2013

Yesterday, the US Census Bureau reported that in 2013 more than 1.7 million North Carolinians lived in poverty, meaning they found it difficult to afford the basics, such as decent housing, nutritious food, and reliable child care. That’s more people than the populations of Asheville, Charlotte, Greensboro, Raleigh, and Wilmington combined. While poverty remains high across all racial groups in North Carolina and throughout the nation compared to pre-recession levels, communities of color continue to face the highest levels of economic hardship.

The federal poverty level is less than $24,000 a year for a family of four. It is less than half of the income required to be economically secure.

The number of non-Hispanic whites living in poverty is greater than any other group in North Carolina. At the same time, some communities of color are much more likely to live on the brink, earning an income that puts them below the federal poverty line. In 2013, 32.5 percent of Latinos, 28.9 percent of American Indians, and 28 percent of African Americans lived in poverty compared to 14.4 percent for Asians and 12.3 percent of non-Hispanic whites (see chart below). Poverty has grown for all groups since the recession, with Hispanics and African Americans experiencing the biggest jumps in economic hardship. Read More

News

North Carolina’s unemployment rate shot up in August, as the state’s labor force continues to shrink.

The state had 6.8 percent of its labor force actively looking for jobs in August, an increase from 6.5 percent the prior month, according to the monthly jobs report released by the N.C. Department of Commerce’s Labor and Economic Analysis Division.

August’s unemployment, however, is still a big drop from the 8 percent unemployment rate North Carolina experienced a year ago, in August 2013.

The jobs report (click here to read) also show that the number of employed workers dropped by 28,666 from the prior month to 4.34 million while the state’s overall labor force (which consists of those in jobs and those looking for jobs) dropped by nearly 20,000 to 4,66 million in a month’s time.

Unemployed workers increased by more than 10,000 from July to August, but the 314,962 people looking for work in August. That’s down from a year earlier, when 372,467 North Carolinians were out of work. Read More

NC Budget and Tax Center, Poverty and Income Data 2013

Poverty remained high in North Carolina last year, according to new Census Bureau data released today. The new data highlights that many people have not benefitted from the state’s weak economic recovery and that North Carolina must do more to help struggling people afford basics like decent housing, nutritious food, and reliable child care, and transportation.

One in five North Carolinians lived in poverty in 2013, equating less than $24,000 a year for a family of four. The median annual income in North Carolina adjusted for inflation did not rise between 2012 and 2013 and is lower now compared to 2009 when the official economic recovery began. Yet other sources show that incomes at the top have grown and the gaps between the top and bottom and top and middle have widened.

North Carolina lawmakers have yet to rebuild what was lost during the recession. Throughout the economic recovery, they have either made deep cuts to or provided inadequate investments for early childhood development, public schools, the UNC System, and nonprofits promoting job and business development in the state’s economically distressed areas. These are key services that invest in people’s future and build a strong economy that offers all families the opportunity to thrive. Lawmakers have also dismantled services that help people get back on their feet when they are struggling, including unemployment benefits, job training programs, and the Earned Income Tax Credit that makes work pay and helps parents avoid raising their children in poverty.

The new Census data shows that progress towards eliminating poverty in the state is stuck: Read More

NC Budget and Tax Center

Economic hardship persisted at high levels in the nation and North Carolina in 2013, according to new figures released today from the Census Bureau’s Current Population Survey (CPS). The 2013 national poverty rate was 14.5 percent, down from 15 percent in 2012 but still well-above pre-recession levels four years into the official economic recovery. There were 45.3 million Americans living below the official federal poverty line, which was $11,490 for an individual and $23,550 for a family of four in 2013.

There is broad consensus that poverty rates will not drop to pre-recession levels anytime soon. And, two economic factors suggested that poverty rates would remain elevated in 2013, as the Center on Budget and Policy Priorities explains. First, the economy is growing but those gains continue to bypass middle- and lower-income families and are mostly benefitting the wealthy. Second, lawmakers enacted austerity measures in 2013 that reduced public contributions to the economy and failed to put children, families, and communities on a better path forward. Read More

Falling Behind in NC, NC Budget and Tax Center

As North Carolina continues to recover from the Great Recession, most of the jobs that have been added pay low wages, making affording even basic necessities difficult for many hard-working North Carolinians. Raising the state minimum wage and reinstating a state Earned Income Tax Credit (EITC) are two policy tools that North Carolina state lawmakers can use to help boost wages, widen the path out of poverty, and reduce income inequality, a report released this week by the Center on Budget and Policy Priorities (CBPP) highlights.

Wages for the least paid workers are no higher than they were 40 years ago, the CBPP report highlights. Yet evidence shows that lifting the income of families earning low wages provides a range of benefits, including improved learning and educational attainment and higher future earnings in adulthood for low-income young children. Furthermore, raising the minimum wage and an enhanced state EITC together works to put families and individuals on a path to financial stability and self-sufficiency. Read More