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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Day: March 29, 2011

US Census Report on Temporary Poverty

Poverty often a temporary state, U.S. census study finds, By Ari Bloomekatz, March 28, 2011, Los Angeles Times: “Donny Ashley misses the days when he was just barely poor. Sure, he commuted more than three hours each day to work as an electrical apprentice, but the paycheck – about $575 a week – put his family of four over the federal poverty threshold. But then the economy turned, and he lost his job. His wife managed to get work as a nurse but lost that job about a month ago. Now, having burned through their savings, the Watts family has gone from barely poor to officially poor. ‘It’s not a good feeling to be, not necessarily above the poverty line, but somewhat, almost having your head above water where you can breathe. Now I’m drowning,’ Ashley said. ‘It’s a constant feeling of struggle, like no end in sight.’ A report released recently by the U.S. Census Bureau suggests that Ashley’s roller coaster ride along the poverty line is not unusual. The study found that poverty was often a temporary state for households: As some families moved out of poverty, others moved in. The report also showed that many of those families that escaped poverty continued to generate only minimal incomes…”

States and Minimum Wage Workers

  • Texas leads nation in minimum wage workers, By Steve Clark, March 28, 2011, Brownsville Herald: “If there’s anything faintly resembling good news in a just-released report from the U.S. Bureau of Labor Statistics, it’s that Texas’ share of hourly workers at or below minimum wage among U.S. states fell from 14.3 percent in 2009 to 9.5 percent in 2010. This just barely qualifies as a positive, however, since the number of Texas hourly workers at or below the prevailing federal minimum wage still increased by 76,000 over 2009. At 9.5 percent, Texas ties with Mississippi in terms of U.S. states with the highest proportion of hourly-paid workers earning at or below federal minimum wage, which is $7.25 an hour. Texas and Mississippi take top honors, therefore, in terms of having the lowest paid workers among all 50 states and the District of Columbia. To be fair, low wages are partly a function of lower cost of living. In Cameron County and the Rio Grande Valley, low wages and low cost of living – by some measures – go hand in hand, and are both a blessing and a curse in the view of economic development officials…”
  • Lone Star State ties Mississippi in low pay count, By Patrick Danner, March 28, 2011, Houston Chronicle: “Texas tied with Mississippi for states having the highest percentage of hourly paid workers earning the minimum wage or less. Some 550,000 Texans, or 9.5 percent of hourly paid workers, made the federal minimum wage of $7.25 an hour or less last year. That’s up 76,000 workers, or 16 percent, from 2009, the Bureau of Labor Statistics reported…”

State Unemployment Benefits – Michigan

  • Michigan Gov. Rick Snyder signs bill to cut unemployment benefits in 2012, By Chris Christoff, March 29, 2011, Detroit Free Press: “As Gov. Rick Snyder and lawmakers struggle to erase a looming $1.4-billion state deficit, another deficit nearly three times as large hangs over the head of Michigan employers. They owe the federal government about $3.96 billion that the state borrowed to pay unemployment benefits during the worst economy since the Great Depression. That’s on top of the regular unemployment tax businesses and other employers must pay. The growing cost is a reason the Republican-led Legislature approved a new law that extends unemployment benefits this year, but next year will reduce to 20 weeks the maximum the state will pay unemployment benefits — down from 26. That means lower unemployment taxes for Michigan employers in the future…”
  • Michigan cuts jobless benefit by six weeks, By Michael Cooper, March 28, 2011, New York Times: “Michigan, whose unemployment rate has topped 10 percent longer than that of any other state, is about to set another record: its new Republican governor, Rick Snyder, signed a law Monday that will lead the state to pay fewer weeks of unemployment benefits next year than any other state. Democrats and advocates for the unemployed expressed outrage that a such a hard-hit state will become the most miserly when it comes to how long it pays benefits to those who have lost their jobs. All states currently pay 26 weeks of unemployment benefits, before extended benefits paid by the federal government kick in. Michigan’s new law means that starting next year, when the federal benefits are now set to end, the state will stop paying benefits to the jobless after just 20 weeks. The shape of future extensions is unclear…”