Facts About Poverty in America

• Poverty Threasholds
• Supplemental Poverty Measure

2010 POVERTY RATE

The official poverty rate in 2010 according to the Federal government was 15.1 percent — up from 14.3 percent in 2009.

By official measures, 46.2 million people were in poverty, up from 43.6 million in 2009 — the fourth consecutive annual increase in the number of people in poverty.The number of people in poverty in 2010 is the largest number in the 52 years for which poverty estimates have been published.

CHILDREN IN POVERTY:

Between 2009 and 2010, the poverty rate increased for children under age 18 (from 20.7 percent to 22.0 percent).

FAMILIES IN POVERTY:

Between 2009 and 2010, the family poverty rate increased from 11.1 percent (8.8 million families) to11.7 percent (9.2 million families).

HEALTH INSURANCE AND POVERTY:

The number of people without health insurance coverage rose from 49.0 million in 2009 to 49.9 million in 2010. In 2010, 9.8 percent of children under 18 were without health insurance; the uninsured rate for children in poverty (15.4 percent) was greater than the rate for all children (9.8 percent).

EMPLOYMENT:

Since 2007, the number of men working full time, year-round with earnings decreased by 6.6 million, and the number of corresponding women declined by 2.8 million.

MINIMUM WAGE AND POVERTY:

• In 2010, the U.S. minimum wage was $7.25/hour. An individual making minimum wage could work a 40-hour week and make $15,080/year.

• For a single adult with a child, the poverty threshold is $15,030 a year, roughly the same as the income from a minimum wage job.

• These assumptions do not take into account holidays, sick time or family emergencies, all of which mean an hourly worker is losing wages.

• Real median household income in the United States in 2010 was $49,445 (Source: US Census Bureau, Income, Poverty and Health Insurance Coverage in the United States: 2010).

• For a family of four in which two adults work full-time at minimum wage, their household income would bring in $19,285 less than the average American household.

• In 2010, 72.9 million American workers age 16 and over were paid at hourly rates, nearly 60 percent of all wage and salary workers. Among those paid by the hour, 1.8 million earned exactly the prevailing Federal minimum wage of $7.25 per hour. About 2.5 million had wages below the minimum.

Source: U.S. Department of Labor, Characteristics of Minimum Wage Workers: 2010, February 25, 2011

YOUNG ADULTS IN POVERTY:

In the spring of 2011, 5.9 million young adults (age 25-34) resided in their parents' households, up from 4.7 million in 2007.

Young adults living with their parents had an official poverty rate of 8.4 percent; if their poverty status is determined using their own income, rather than family income, 45.3 percent had an income below the poverty threshold for a single person under 65.

Source: U.S. Census Bureau, Social, Economic, and Housing Statistics Division: Poverty, September 13, 2011

POVERTY THRESHOLDS IN 2010

Food, shelter, clothing, health care, and transportation are only the beginnings of the basic necessities of modern American living. Each year, the federal government calculates the minimum amount of money required by families to meet these basic needs. The resulting calculation is what is commonly referred to as the "poverty line."

The U.S. Census Bureau has defined the 2010 poverty lines for individuals and families based on 2009 data:

• Individuals making less than $11,139 per year are living below the poverty line, meaning they are not making enough to adequately feed, shelter and care for themselves.
• For a couple, the poverty threshold rises to $14,218.
• A single parent with one child is living below the poverty line if he or she makes less than $15,030 a year. If a parent is living below the poverty line, his or her child is as well.
• For two adults living with one child, the threshold rises to $17,552.
• When the individual is a senior (over 65), the poverty threshold is $10,458 a year.
• If a senior has a person under the age of 18 in his or her home, the poverty threshold for the family is $14,973.

The poverty threshold continues to rise as family size increases, meaning that the U.S. Census Bureau expects larger families to require more money in order to meet their basic human needs.

• The poverty threshold for a single parent with two children is $17,568.
• For two adults and two children, the threshold is $22,113.
• For a single parent with three children, the poverty threshold is $22,190.
• For two adults and three children, the threshold is $26,023.

More information on poverty thresholds and how they are calculated: How the Census Bureau Measures Poverty.

Source: U.S. Census Bureau, Social, Economic, and Housing Statistics Division: Poverty, September 13, 2011

NEW POVERTY ADJUSTMENTS:

In November 2011, the U.S. Census Bureau announced a new supplemental poverty measure (SPM) that with different measures of both economic resources and living costs. New adjustments take into account federal food, housing and energy subsidies, as well as additional costs including payroll taxes, medical out-of-pocket expenses, and work related expenses such as child care.

By the SPM measure:

• Child poverty in 2010 declined to 13.6 million
• The total number of those in poverty increased to 49 million.
• The poverty rate among seniors rose from 9% to 15.9% based on medical expenses.
• The poverty rate among working age adults stayed relatively the same, 15.1% to 15.2%

Source:U.S. Census Bureau:http://www.census.gov/hhes/www/poverty/poverty.html