Poverty in U.S. Soared to a Pandemic High Last Month
NEY YORK (NBC) - More than a year into the Covid-19 pandemic, it is becoming clear that the economic pain has not abated for many Americans — and is worsening for some.
Researchers at the University of Chicago Harris School of Public Policy and the University of Notre Dame Department of Economics are using monthly Census data to capture a nearly real-time snapshot of American poverty. Last month, even as the unemployment rate fell and more states relaxed restrictions on business operations, the poverty rate hit a pandemic high of 11.7 percent — a full percentage point greater than it was in early 2020.
For some of the most marginalized populations, the rate of poverty in March was even higher. Black poverty had retreated from the 23.3 percent high it touched last August but, at 21.2 percent, remained close to double that of the overall rate. Childhood poverty soared to a rate of 17.4 percent, and was high for less-educated people, as well, rising to 22.2 percent among those with only a high school education or less.
In both January and February of 2020, the poverty rate held steady at 10.7 percent — although even those metrics masked the challenges faced by some populations. Black poverty, for instance, was 20.7 percent in February 2020, compared to a rate of 8.9 percent for whites. The poverty rate for people without any college education was also elevated, at 19.6 percent in February 2020.
Experts say the monthly research illustrates just how instrumental Congressional fiscal aid such as the CARES Act and subsequent stimulus programs at keeping families out of poverty have been — and offers a glimpse of what could happen once those programs wind down if employment has not rebounded significantly.
Researchers at the University of Chicago Harris School of Public Policy and the University of Notre Dame Department of Economics are using monthly Census data to capture a nearly real-time snapshot of American poverty. Last month, even as the unemployment rate fell and more states relaxed restrictions on business operations, the poverty rate hit a pandemic high of 11.7 percent — a full percentage point greater than it was in early 2020.
For some of the most marginalized populations, the rate of poverty in March was even higher. Black poverty had retreated from the 23.3 percent high it touched last August but, at 21.2 percent, remained close to double that of the overall rate. Childhood poverty soared to a rate of 17.4 percent, and was high for less-educated people, as well, rising to 22.2 percent among those with only a high school education or less.
In both January and February of 2020, the poverty rate held steady at 10.7 percent — although even those metrics masked the challenges faced by some populations. Black poverty, for instance, was 20.7 percent in February 2020, compared to a rate of 8.9 percent for whites. The poverty rate for people without any college education was also elevated, at 19.6 percent in February 2020.
Experts say the monthly research illustrates just how instrumental Congressional fiscal aid such as the CARES Act and subsequent stimulus programs at keeping families out of poverty have been — and offers a glimpse of what could happen once those programs wind down if employment has not rebounded significantly.