The Clinton Herald, Clinton, Iowa

Illinois

January 30, 2014

Report: Illinois poverty remains stubbornly high

CHICAGO — Illinois’ overall poverty rate is the same as it was a half-century ago despite scores of state and federal aid programs and a dramatic drop in the number of older people struggling to get by, according to a new report that examines how the state has fared since President Lyndon Johnson declared a national War on Poverty.

Almost 15 percent of Illinois residents, about 1.9 million, lived below the federal poverty line in 2012, about the same as in 1960 before Johnson’s call to action, according to the report released Thursday by the Chicago-based Social IMPACT Research Center. It comes a day after Gov. Pat Quinn called on lawmakers to raise the minimum wage to $10 an hour and double a tax credit that helps low-income workers keep more of their earnings.

The stubbornly high poverty rate — defined as an annual income below $23,850 for a family of four — reflects, in part, a loss of manufacturing jobs and an increase in part-time-only and service jobs, as well as a high number of people still unemployed since the recession, said Amy Terpstra, the center’s associate director.

“It’s not 100 percent one thing or the other,” Terpstra said. “But you used to be able to come out of or not finish high school, learn skills on the job and get a family-supporting wage plus benefits, pension and vacation. Those jobs have been diminishing (and are being) replaced with jobs that are lower-paying and less secure.”

Among the report’s findings:

— Poverty has increased about 3 percentage points for working-age men and women. About 9 percent of men lived in poverty in 1960, compared to 12 percent in 2012; for women, poverty increased from 12 percent to more than 15 percent in that same period.

— Almost 21 percent of children, or 1 in 5 under the age of 18, lived in poverty in 2012, compared to 16.5 percent in 1960.

— The poverty rate among blacks and Latinos remains highest among ethnic and racial groups. Poverty among blacks was 32 percent in 2012, down about 3 percentage points from 1960; it was more than 21 percent among Latinos in 2012, and about 21 percent in 1960.

— Poverty among senior citizens has dropped the most, with the rate for those 65 and older down from 30 percent in 1960 to just below 9 percent in 2012, because of programs such as Social Security and Medicare. Even so, Terpstra said, the number of seniors looking for work has increased 40 percent since 2000.

— The number of Illinois counties with a poverty rate of 20 percent or higher fell from 68 in 1960 to 10 in 2012, while suburban poverty has increased.

But the issue is complicated and nuanced, and the official federal poverty line does not provide a full picture of economic hardship, Terpstra said. For example, almost 18 percent of Illinois residents are above the poverty threshold but considered low-income.

 

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