Poverty: 2018 and 2019

Poverty: 2018 and 2019

American Community Survey Briefs

By Craig Benson Issued September 2020

ACSBR/20-04

INTRODUCTION

Planners, policymakers, and community stakeholders use poverty estimates as key indicators to evaluate trends and current economic conditions within communities and to make comparisons across demographic groups. Federal and state governments often use these estimates to allocate funds to local communities. Government agencies and local organizations regularly use these estimates to identify the number of individuals and families eligible for various programs and to measure economic well-being.

This brief uses the 2018 and 2019 American Community Survey (ACS) 1-year estimates to analyze poverty rates for 2019, as well as the changes in poverty from 2018 for the nation, states, the District of Columbia, Puerto Rico, and the most populous metropolitan areas.1, 2 Additionally, this report discusses the distribution of people by income-to-poverty ratios for the aforementioned geographic areas, providing a picture of the depth of poverty and the proximity to poverty.

1 Metropolitan and micropolitan statistical areas (metro and micro areas) are geographic entities delineated by the Office of Management and Budget (OMB) for use by federal statistical agencies in collecting, tabulating, and publishing federal statistics. The term "Core Based Statistical Area" (CBSA) is a collective term for both metro and micro areas. A metro area contains a core urban area with a population of 50,000 or more individuals, and a micro area contains an urban core of at least 10,000 (but fewer than 50,000) individuals. For more information, see .

2 The U.S. Census Bureau reviewed this data product for unauthorized disclosure of confidential information and has approved the disclosure avoidance practices applied to this release. CBDRB-FY20-POP001-0201.

This report provides estimates for calendar year 2019, the last year of the economic expansion spanning from June 2009 through February 2020. The data collection period for the 2019 ACS spanned January to December of 2019; estimates presented here do not reflect the subsequent COVID-19 pandemic, the associated public health response, or the end of the economic expansion.

HIGHLIGHTS

? In 2019, the ACS national poverty rate was 12.3 percent, a decline from 13.1 percent in 2018.3 The 0.8 percentage-point decrease in the percent of the U.S. population with income below the poverty level was among the largest declines in year-to-year poverty rates since the inception of the ACS in 2005.4 The ACS national poverty rate was the lowest rate since the beginning of the ACS in 2005.5

3 Following the standard specified by OMB in Statistical Policy Directive 14, data from the Current Population Survey Annual Social Economic Supplement (CPS ASEC) are used to estimate the official national poverty rate, which can be found in the report, "Income and Poverty in the United States: 2019," available at . The national poverty percentage does not include data for Puerto Rico. 4 The 0.8 percentage-point decline in poverty rates from 2018 to 2019 was not statistically different from the decline from 2014 to 2015. 5 National poverty rates for the Census 2000 Supplementary Survey (C2SS), a precursor to the ACS, were 12.2 percent in 2000, 12.1 percent in 2001, 12.4 percent in 2002, 12.7 percent in 2003, and 13.1 percent in 2004. The C2SS poverty rate in 2000 was not statistically different from poverty rates in 2001 and 2002. The 2019 ACS poverty rate was not statistically different from the C2SS poverty rates in 2000, 2001, and 2002.

HOW POVERTY IS MEASURED

Poverty status is determined by comparing annual income to a set of dollar values (called poverty thresholds) that vary by family size, number of children, and the age of the householder. If a family's before-tax money income is less than the dollar value of their threshold, then that family and every individual in it are considered to be in poverty. For people not living in families, poverty status is determined by comparing the individual's income to his or her poverty threshold.

The poverty thresholds are updated annually to account for changes in the cost of living using the Consumer Price Index (CPI-U). They do not vary geographically.

The ACS is a continuous survey, with people responding throughout the year. Since income is reported for the previous 12 months, the appropriate poverty threshold for each family is determined by multiplying the base-year poverty threshold from 1982 by the average of monthly CPI values for the 12 months preceding the survey month.

The analysis in this report is based predominantly on the 2018 and 2019 ACS 1-year estimates. Since the survey is continuous, adjacent ACS years have income reference months in common. Therefore, comparing the 2018 ACS estimates with the 2019 ACS estimates is not an exact comparison of economic conditions in 2018 with those in 2019, and comparisons should be interpreted with caution.*

For more information, see page 108 of "American Community Survey and Puerto Rico Community Survey 2019 Subject Definitions" at . For more information on ACS sample design and other topics, visit .

* For a discussion of this and related issues, see Howard Hogan, "Measuring Population Change Using the American Community Survey," Applied Demography in the 21st Century, eds. Steven H. Murdock and David A. Swanson, Springer Netherlands, 2008.

? The poverty rate declined in nearly half of all states (23 states and the District of Columbia) between 2018 and 2019. Poverty rates did not increase in any state from 2018 to 2019.

? In 15 of the 25 most populous metropolitan areas,

the poverty rate declined between 2018 and 2019. None of the 25 most populous metropolitan areas saw poverty increase in 2019.

? In 2019, the proportion of people with income below 50 percent of their poverty threshold declined nationally

from 5.9 percent to 5.5 percent.

? The percentage of people in the United States with income less than 125 percent of their poverty threshold declined to 16.3 percent in 2019, from 17.4 percent in 2018.

2

U.S. Census Bureau

Figure 1. ACS Poverty Rates: 2005 to 2019 (For information on confidentiality protection, sampling error, nonsampling error, and definitions, see )

Percentage in poverty

Recession

percent

percent

Note: Starting in 2006, the American Community Survey (ACS) included group quarters population. The poverty universe excludes children under the age of 15 who are not related to the householder, people living in institutional group quarters (e.g., nursing homes or correctional facilities), and people living in college dormitories or military barracks. Recessions are determined by the National Bureau of Economic Research. For more information, see .

Source: U.S. Census Bureau, 2005 to 2019 American Community Surveys, 1-Year Estimates.

POVERTY

In 2019, 12.3 percent of the total U.S. population had income below their respective poverty thresholds, a decline from the 2018 estimate of 13.1 percent. This was the sixth consecutive year that the percentage of the U.S. population in poverty, as measured by the ACS, has

decreased (from 15.8 percent in 2013) and was the first instance of 6 consecutive years of decline since the inception of the ACS in 2005 (Figures 1 and 2).6 In three states (California, Florida, and Georgia), poverty rates declined

6 All year-to-year changes from 2005 to 2019, except 2005 to 2006, 2011 to 2012, and 2012 to 2013, were statistically significant.

for the sixth year in a row. In two states (Illinois and New York), poverty rates declined for a fifth consecutive year. In six additional states (Arizona, Michigan, North Carolina, Oregon, Tennessee, and Washington), poverty rates declined in 4 of the last 5 years.

U.S. Census Bureau

3

Figure 2. Year-to-Year Percentage-Point Change in Poverty Rate: 2005 to 2019 (For information on confidentiality protection, sampling error, nonsampling error, and definitions, see )

Percentage-point change

Z

Z

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Z Represents or rounds to zero. Note: Starting in 2006, the American Community Survey (ACS) included group quarters population. The poverty universe excludes children under the age of 15 who are not related to the householder, people living in institutional group quarters (e.g., nursing homes or correctional facilities), and people living in college dormitories or military barracks. All changes are statistically significant except for 2005 to 2006, 2011 to 2012, and 2012 to 2013.

Source: U.S. Census Bureau, 2005 to 2019 American Community Surveys, 1-Year Estimates.

A review of state poverty rates shows New Hampshire had the lowest 2019 rate at 7.3 percent, while Mississippi had among the highest at 19.6 percent (Table 1).7 Figure 3 displays the percentage of people in poverty for all states, the District of Columbia, and Puerto Rico.8 In 2019, eight states had poverty rates below 9.5 percent: Colorado, Hawaii,

7 The poverty rate for Mississippi (19.6 percent) was not statistically different from the poverty rate for Louisiana (19.0 percent).

8 The classification categories used in Figure 3 and Figure 6 have been determined by the natural breaks (Jenks) method of categorization.

Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, and Utah. Alabama, Arkansas, Kentucky, Louisiana, Mississippi, New Mexico, Oklahoma, West Virginia, and Puerto Rico had 2019 poverty rates of 15.0 percent or higher (Figure 3). States with poverty rates of less than 9.5 percent were concentrated in the New England and Mountain Census Divisions, while states with a poverty rate of 15.0 percent or higher were concentrated in the

East South Central and the West South Central Census Divisions.9

9 Census divisions are groupings of states and the District of Columbia that are subdivisions of the four census regions--Northeast, South, Midwest, and West. For a map as well as a list of states contained in each region and division, see . The New England Division includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. The Mountain Census Division includes Arizona, Colorado, Idaho, Montana, New Mexico, Nevada, Utah, and Wyoming. The East South Central Division includes Alabama, Kentucky, Mississippi, and Tennessee. The West South Central Division includes Arkansas, Louisiana, Oklahoma, and Texas.

4

U.S. Census Bureau

Table 1.

Number and Percentage of People in Poverty in the Past 12 Months by State and Puerto Rico: 2018 and 2019

(For information on confidentiality protection, sampling error, nonsampling error, and definitions, see )

Below poverty in 2018

Area

Number1

Margin of

error (?)2 Percent1

United States. . . . . . . 41,852,315 232,949 13.1

Alabama . . . . . . . . . . . . 800,422 20,616 16.8

Alaska . . . . . . . . . . . . . .

78,620 7,217 10.9

Arizona . . . . . . . . . . . . . 983,499 28,300 14.0

Arkansas . . . . . . . . . . . . 504,504 19,795 17.2

California. . . . . . . . . . . . 4,969,326 62,249 12.8

Colorado . . . . . . . . . . . . 537,492 18,885

9.6

Connecticut . . . . . . . . . 361,377 14,037 10.4

Delaware . . . . . . . . . . . . 117,242 9,236 12.5

District of Columbia . . 108,055 8,920 16.2

Florida . . . . . . . . . . . . . . 2,840,977 47,549 13.6

Georgia . . . . . . . . . . . . . 1,468,642 34,068 14.3

Hawaii . . . . . . . . . . . . . . 122,143 8,890

8.8

Idaho . . . . . . . . . . . . . . . 203,264 12,603 11.8

Illinois. . . . . . . . . . . . . . . 1,509,247 32,779 12.1

Indiana. . . . . . . . . . . . . . 852,638 24,677 13.1

Iowa . . . . . . . . . . . . . . . . 343,504 13,910 11.2

Kansas . . . . . . . . . . . . . . 338,175 14,157 12.0

Kentucky . . . . . . . . . . . . 730,408 22,182 16.9

Louisiana. . . . . . . . . . . . 843,626 23,603 18.6

Maine . . . . . . . . . . . . . . . 151,541 7,765 11.6

Maryland . . . . . . . . . . . . 528,203 21,054

9.0

Massachusetts . . . . . . . 663,918 20,551 10.0

Michigan . . . . . . . . . . . . 1,373,349 26,495 14.1

Minnesota . . . . . . . . . . . 529,077 16,528

9.6

Mississippi. . . . . . . . . . . 567,645 18,752 19.7

Missouri . . . . . . . . . . . . . 786,330 21,180 13.2

Montana . . . . . . . . . . . . 135,114 8,427 13.0

Nebraska . . . . . . . . . . . . 206,341 9,787 11.0

Nevada . . . . . . . . . . . . . 387,327 14,864 12.9

New Hampshire. . . . . . 100,220 6,538

7.6

New Jersey . . . . . . . . . . 832,133 26,316

9.5

New Mexico . . . . . . . . . 399,456 16,659 19.5

New York. . . . . . . . . . . . 2,591,391 46,405 13.6

North Carolina . . . . . . . 1,417,873 35,989 14.0

North Dakota . . . . . . . .

78,676 5,987 10.7

Ohio . . . . . . . . . . . . . . . . 1,578,673 37,243 13.9

Oklahoma . . . . . . . . . . . 596,949 16,807 15.6

Oregon . . . . . . . . . . . . . 516,570 19,440 12.6

Pennsylvania . . . . . . . . 1,517,870 30,308 12.2

Rhode Island . . . . . . . . 131,205 9,492 12.9

South Carolina . . . . . . . 755,215 23,160 15.3

South Dakota . . . . . . . . 111,626 6,667 13.1

Tennessee . . . . . . . . . . . 1,011,016 27,948 15.3

Texas . . . . . . . . . . . . . . . 4,180,675 65,525 14.9

Utah . . . . . . . . . . . . . . . . 280,773 15,853

9.0

Vermont . . . . . . . . . . . .

66,013 5,347 11.0

Virginia . . . . . . . . . . . . . 884,647 27,692 10.7

Washington . . . . . . . . . 759,013 23,800 10.3

West Virginia . . . . . . . . 312,188 15,244 17.8

Wisconsin . . . . . . . . . . . 625,826 17,423 11.0

Wyoming . . . . . . . . . . .

62,301 6,775 11.1

Puerto Rico. . . . . . . . . . 1,363,666 23,647 43.1

Margin of

error (?)2

0.1

0.4 1.0 0.4 0.7 0.2 0.3 0.4 1.0 1.3 0.2

0.3 0.6 0.7 0.3 0.4 0.5 0.5 0.5 0.5 0.6

0.4 0.3 0.3 0.3 0.6 0.4 0.8 0.5 0.5 0.5

0.3 0.8 0.2 0.4 0.8 0.3 0.4 0.5 0.2 0.9

0.5 0.8 0.4 0.2 0.5 0.9 0.3 0.3 0.9 0.3 1.2

0.7

Below poverty in 2019

Number1

Margin of

error (?)2 Percent1

39,490,096 242,000 12.3

739,108 24,870 15.5

71,938 7,880 10.1

958,442 33,279 13.5

474,739 16,707 16.2

4,552,837 67,995 11.8

526,979 20,810

9.3

347,149 13,761 10.0

106,383 10,953 11.3

90,534 8,570 13.5

2,664,772 55,731 12.7

1,373,909 35,565 13.3

128,722 11,476

9.3

195,984 13,818 11.2

1,420,542 37,778 11.5

775,823 24,457 11.9

341,613 16,006 11.2

323,189 13,737 11.4

703,627 22,815 16.3

857,894 28,695 19.0

141,803 9,329 10.9

532,241 20,417

9.0

625,763 19,408

9.4

1,269,062 30,302 13.0

494,683 17,961

9.0

564,192 24,018 19.6

770,175 23,258 12.9

131,882 8,022 12.6

185,761 9,589

9.9

379,564 19,019 12.5

95,711 7,285

7.3

798,262 25,821

9.2

373,230 15,038 18.2

2,467,006 45,734 13.0

1,386,122 34,891 13.6

78,112 6,057 10.6

1,484,862 31,837 13.1

583,029 15,382 15.2

470,643 17,376 11.4

1,489,333 38,199 12.0

110,244 9,715 10.8

692,744 27,058 13.8

101,946 8,090 11.9

922,176 25,901 13.9

3,865,010 70,183 13.6

281,279 15,513

8.9

60,897 4,517 10.2

822,775 24,460

9.9

730,240 26,102

9.8

278,734 14,047 16.0

591,486 18,294 10.4

56,945 5,626 10.1

1,376,809 24,017 43.5

Margin of

error (?)2

0.1

0.5 1.1 0.5 0.6 0.2 0.4 0.4 1.2 1.3 0.3

0.3 0.8 0.8 0.3 0.4 0.5 0.5 0.5 0.6 0.7

0.3 0.3 0.3 0.3 0.8 0.4 0.8 0.5 0.6 0.6

0.3 0.7 0.2 0.3 0.8 0.3 0.4 0.4 0.3 1.0

0.5 0.9 0.4 0.2 0.5 0.8 0.3 0.3 0.8 0.3 1.0

0.8

Change in poverty (2019 less 2018)

Number1

Margin of

error (?)2

Percent1

Margin of

error (?)2

*?2,362,219 335,900 *?0.8

0.1

*?61,314 32,303 *?1.3

0.7

?6,682 10,685

?0.8

1.5

?25,057 43,685

?0.6

0.6

*?29,765 25,903 *?1.0

0.9

*?416,489 92,186 *?1.0

0.2

?10,513 28,101

?0.3

0.5

?14,228 19,657

?0.4

0.6

?10,859 14,328

?1.2

1.5

*?17,521 12,370 *?2.7

1.8

*?176,205 73,259 *?0.9

0.3

*?94,733 49,249 *?1.0

0.5

6,579 14,516

0.5

1.1

?7,280 18,702

?0.6

1.1

*?88,705 50,016 *?0.6

0.4

*?76,815 34,744 *?1.2

0.5

?1,891 21,206

?0.1

0.7

?14,986 19,727

?0.5

0.7

?26,781 31,820

?0.6

0.7

14,268 37,156

0.4

0.8

?9,738 12,138

?0.8

0.9

4,038 29,328

0.1

0.5

*?38,155 28,267 *?0.6

0.4

*?104,287 40,252 *?1.1

0.4

*?34,394 24,409 *?0.7

0.4

?3,453 30,471

?0.1

1.1

?16,155 31,456

?0.3

0.5

?3,232 11,635

?0.4

1.1

*?20,580 13,701 *?1.1

0.7

?7,763 24,139

?0.4

0.8

?4,509 9,789

?0.4

0.7

?33,871 36,868

?0.4

0.4

*?26,226 22,443 *?1.3

1.1

*?124,385 65,154 *?0.6

0.3

?31,751 50,126

?0.4

0.5

?564 8,517

?0.1

1.2

*?93,811 48,997 *?0.8

0.4

?13,920 22,783

?0.4

0.6

*?45,927 26,074 *?1.2

0.6

?28,537 48,762

?0.2

0.4

*?20,961 13,582 *?2.1

1.3

*?62,471 35,616 *?1.4

0.7

?9,680 10,483

?1.2

1.2

*?88,840 38,105 *?1.5

0.6

*?315,665 96,017 *?1.3

0.3

506 22,181

?0.1

0.7

?5,116 6,999

?0.8

1.2

*?61,872 36,948 *?0.8

0.4

?28,773 35,324 *?0.5

0.5

*?33,454 20,729 *?1.8

1.2

*?34,340 25,263 *?0.6

0.4

?5,356 8,806

?1.0

1.6

13,143 33,704

0.4

1.1

* Statistically different from zero at the 90 percent confidence level. 1 Poverty status is determined for individuals in housing units and noninstitutional group quarters. The poverty universe excludes children under the age of 15 who are not related to the householder, people living in institutional group quarters (e.g., nursing homes or correctional facilities), and people living in college dormitories or military barracks. 2 Data are based on a sample and are subject to sampling variability. A margin of error is a measure of an estimate's variability. The larger the margin of error in relation to the size of the estimate, the less reliable the estimate. This number when added to or subtracted from the estimate forms the 90 percent confidence interval. Source: U.S. Census Bureau, 2018 and 2019 American Community Survey and 2018 and 2019 Puerto Rico Community Survey, 1-Year Estimates.

U.S. Census Bureau

5

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download