Poverty Would Have Fallen Last Year if Jobless Benefits Hadn’t Shrunk

September 13, 2012 at 10:04 am

The poverty rate, which held steady in 2011, would have fallen if unemployment insurance (UI) payments hadn’t shrunk considerably last year, our analysis of yesterday’s Census Bureau data concludes.

Not counting UI income, the poverty rate fell from 16.2 percent in 2010 to 15.7 percent in 2011, a statistically significant decline.

UI benefits kept 900,000 fewer people out of poverty in 2011 than in 2010, the Census figures show (see graph).  Total UI benefits fell by roughly one-quarter as the 2009 Recovery Act’s temporary benefit increase expired, many jobless Americans exhausted their benefits before they found jobs, and (on a positive note) the unemployment rate edged down.

The economy showed modest improvement in 2011, as the number of private-sector jobs rose by 1.9 million.  But the UI decline — plus the loss of 386,000 public-sector jobs, mostly in state and local government — pushed poverty in the other direction.

Falling UI payments could slow the recovery’s progress against poverty again in 2012 — and especially in 2013, depending on what policymakers do in coming months.  Federal UI benefits will end entirely on December 31 if they don’t act.

Click here for our full statement about the new Census figures.

Print Friendly

More About Arloc Sherman

Arloc Sherman

Sherman is a Senior Researcher focusing on family income trends, income support policies, and the causes and consequences of poverty.

Full bio | Blog Archive | Research archive at CBPP.org

Your Comment

Comment Policy:

Thank you for joining the conversation about important policy issues. Comments are limited to 1,500 characters and are subject to approval and moderation. We reserve the right to remove comments that:

  • are injurious, defamatory, profane, off-topic or inappropriate;
  • contain personal attacks or racist, sexist, homophobic, or other slurs;
  • solicit and/or advertise for personal blogs and websites or to sell products or services;
  • may infringe the copyright or intellectual property rights of others or other applicable laws or regulations; or
  • are otherwise inconsistent with the goals of this blog.

Posted comments do not necessarily represent the views of the CBPP and do not constitute official endorsement by CBPP. Please note that comments will be approved during the Center's business hours. If you have questions, please contact communications@cbpp.org.



 characters available