Low-paying jobs are here to stay

Stuck in a job with lousy pay? Better get used to it. Some 28% of workers are expected to hold low-wage jobs in 2020, roughly the same percentage as in 2010, according to a study by the Economic Policy Institute.
The study defines low-paying jobs as those with wages at or below what full-time workers must earn to live above the poverty level for a family of four. In 2011, this was $23,005, or $11.06 an hour.

The economy won't support much growth in jobs with higher salaries, said Rebecca Thiess, policy analyst at the left-leaning Economic Policy Institute, who crunched government data to come up with these projections.
"Far too many economic pundits take for granted that the economy of the future will demand far greater skills and credentials," she wrote in a recent paper.

While all eyes are on Friday's monthly jobs report to find out how many positions were added in July, a growing number of economists are concerned with the quality of the jobs being created. Lower wage occupations grew by 3.2% over the year ending in the first quarter of 2011, according to the National Employment Law Project. This was fueled mainly by the expansion of retail salespeople, office clerks, cashiers, food prep workers and store clerks, whose median hourly wages ranged from $7.51 to $13.52. Read more >>

US poverty on track to rise to highest since 1960s

The ranks of America's poor are on track to climb to levels unseen in nearly half a century, erasing gains from the war on poverty in the 1960s amid a weak economy and fraying government safety net. Census figures for 2011 will be released this fall in the critical weeks ahead of the November elections.

The Associated Press surveyed more than a dozen economists, think tanks and academics, both nonpartisan and those with known liberal or conservative leanings, and found a broad consensus: The official poverty rate will rise from 15.1 percent in 2010, climbing as high as 15.7 percent. Several predicted a more modest gain, but even a 0.1 percentage point increase would put poverty at the highest level since 1965.

Poverty is spreading at record levels across many groups, from underemployed workers and suburban families to the poorest poor. More discouraged workers are giving up on the job market, leaving them vulnerable as unemployment aid begins to run out. Suburbs are seeing increases in poverty, including in such political battlegrounds as Colorado, Florida and Nevada, where voters are coping with a new norm of living hand to mouth. Read more >>

25% In Spain Live Below Poverty Line

A recent report released by a Spanish institution says 25 percent of Spain’s population live below poverty line, 2 percent higher than last year, as the country grapples with the highest rate of impoverishment among European states.

According to an annual report issued by the Spanish Economic and Social Council (CES), lack of jobs for young people is expected to increase poverty and social inequality for several years to come, warning that further welfare and education cuts could have dire consequences for future generations.

“We know that there are countries where two or three young generations have been failed by their education system and there are countries too where young people have never been given a chance to get into the workforce,” said Fernando Valdes of the CES. The reports also added that the index of deprivation from social services is high among the Spanish population. Read more >>

5 States That Tax The Poor The Most

MSNBC
In an effort to help families work their way out of poverty, most of the United States do not tax the incomes of working-poor families. A handful of states do, however.

1. Alabama

Alabama is one of the country’s poorest states, and it taxes its poor residents’ incomes the most. The state has a poverty rate of 17.4 percent, which is among the nation’s highest. It also has the fifth-lowest median household income. A family of four at the poverty line must pay $548 in income taxes. This amount has consistently increased since 1994. Additionally, Alabama has the second-lowest tax threshold in the country. A single-parent family of three making $9,800 -- or 55 percent of the group’s poverty level of $17,922 -- remains subject to income tax.

2. Illinois

Illinois taxes families of four making 57 percent of the poverty level. This means that a family earning $13,100 a year must pay income tax. Due to state fiscal issues, Illinois raised its flat income tax rate from 3 percent to 5 percent in 2011. This caused income taxes for a family of four at the poverty line to increase by $322. However, the state plans to fully implement tax credits for low-income families by 2013, which “will almost completely offset the impact of the income tax increase for poor families,” according to CBPP.

3. Hawaii

Hawaii has a particularly low poverty rate of 10 percent. It also has one of the highest median household incomes in the country. The state continues to tax families at the poverty line at one of the highest rates in the country. However, the amount a family of four at the poverty line pays in income tax has decreased since 1994. That year, the amount was $406. Today, it is $331. The state also taxes families making 77 percent of the poverty line or more.

4. Oregon

A family of four in Oregon living at the poverty line pays the fourth-most taxes in the country at $274. For a family that size making 125 percent of the poverty line, the amount of tax owed jumps to $869 -- the third most in the country. State lawmakers have considered extending tax breaks for low-income households in recent years, but significant action has not yet taken place.

5. Georgia

Georgia has among the highest rates of residents living below the poverty line in the country. It also has the fourth-lowest tax threshold in the county. Families making just 69 percent of the poverty line or more are taxed. For those low-income families, taxes are generally getting worse. The amount that a family of four living on the poverty line must pay in income tax has more than doubled since 1994, from $116 to $273. More...

Poverty in America: Faces behind the figures

At a food pantry in a Chicago suburb, a 38-year-old mother of two breaks into tears. She and her husband have been out of work for nearly two years. Their house and car are gone. So is their foothold in the middle class and, at times, their self-esteem.

"It's like there is no way out," says Kris Fallon.

She is trapped like so many others, destitute in the midst of America's abundance. Last week, the Census Bureau released new figures showing that nearly one in six Americans lives in poverty — a record 46.2 million people. The poverty rate, pegged at 15.1 percent, is the highest of any major industrialized nation, and many experts believe it could get worse before it abates.

The numbers are daunting — but they also can seem abstract and numbing without names and faces. More...

More Americans 'double up' in tough economy

There's been talk of people sharing homes during the recession, and now the Census Bureau has released the data to prove it.

This spring, there were 21.8 million "doubled-up" households across the nation, a 10.7 percent increase from the 19.7 million households in the spring of 2007, the Census Bureau said. That means 18.3 percent of all households were combined households.

Much of the increase was the result of adult children who either moved back home during the recession or never left. Among adults between the ages of 25 and 34, some 5.9 million were living with their parents this spring, up from 4.7 million before the recession hit in 2007. That 25 percent increase translated to 14.2 percent of all young adults living with their parents in March, the bureau said. More...

US poverty rate rose to 15.1% in 2010

Image via WikipediaAmid a still struggling economy, more Americans fell below the poverty line last year, according to new census data released Tuesday. The nation's poverty rate rose to 15.1% in 2010, its highest level since 1993. About 46.2 million people are considered in need.

The government defines the poverty line as income of $22,314 a year for a family of four and $11,139 for an individual. The Office of Management and Budget updates the poverty line each year to account for inflation.

As for middle-class American families, income fell in 2010. The median household income was $49,445, down slightly from $49,777 the year before.

Overall, median income has changed very little compared to rising consumer prices over the last 30 years. Adjusted for inflation, the middle-income family only earns 11% more than they did in 1980, while consumer prices have risen roughly 155%. More...

Food Stamp Recipients Hit New Record - 44.2 million

Today SNAP released the most recent food stamp numbers. Not surprisingly, we just saw another all time high 44.2 million poverty-level Americans relying on government funding for day to day sustenance. Granted the number appears to be plateauing, so all those who bought the change if not the ho[y]pe, can rejoice as it may start declining next month: a development that is sure to be herald for Obama a 4th Putin-esque term. More...

Food stamp participation in January hits all-time record 44,187,831

As some Americans managed to find part-time and temporary jobs in March, some other Americans dropped below the poverty level threshold. 105 thousand in one month to be precise. The total foodstamp participation in January hit an all time record 44,187,831 according to the USDA. But fear not, here's the bullish spin... sorry, there is no way to spin this. More...

A Third of US Working Families Considered Poor

Image via WikipediaIn the aftermath of the worst economic downturn since the Depression, much attention has been focused on the 15 million people who are officially out of work, yet even among those who have jobs, livelihoods and living standards have been substantially downgraded. Growing numbers of employed people live in near poverty, struggling to make ends meet.

Almost a third of America's working families are now considered low-income, earning less than twice the official poverty threshold, according to a report released Tuesday by the Working Poor Families Project. The recession, which has incited layoffs and wage cuts, reversed a period of improvement: Between 2007 and 2009, as the recession set in, the percentage of U.S. working families classified as low-income grew from 28 percent to more than 30 percent.

Workers who once focused on career advancement now live paycheck to paycheck. The American middle class, in effect, is eroding. More...