The Great Recession and Poverty January 19, 2012 DHS Office of Forecasting, Research & Analysis 1...

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The Great Recession and Poverty January 19, 2012 January 19, 2012 DHS Office of Forecasting, Research & Analysis 1 Suzanne Porter Oregon Department Of Human Services Office of Forecasting, Research & Analysis 503.945.9778 FAX: 503.378.2897 [email protected]

Transcript of The Great Recession and Poverty January 19, 2012 DHS Office of Forecasting, Research & Analysis 1...

The Great Recession and Poverty

January 19, 2012

January 19, 2012 DHS Office of Forecasting, Research & Analysis 1

Suzanne Porter

Oregon Department Of Human Services

Office of Forecasting, Research & Analysis

503.945.9778

FAX: 503.378.2897

[email protected]

Newly Poor in the Great Recession

First detailed look at the work characteristics of SNAP households – working age and not disabled

Compared two SNAP intake cohorts: CY 2005 and FY 2009 Expansionary vs. recessionary period

Household structure, demographics, and work history of head of householder

http://oregonstate.edu/cla/mpp/sites/default/files/pdf/newpoor_0.pdf

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Comparing the 2009 with 2005 cohort: The total number of households increased by 58% The number of new households in 2009 was nearly as large as the total

number of households in 2005

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Multi-adult households nearly doubled

Higher rates of growth among older households

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Full-time worker households nearly doubled Households experiencing a drop in earned income more than

doubled Average percentage drop in earnings ≈ 1/3

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Work history analyzed for the year prior to SNAP receipt

Drop in earned income measured in quarter immediately preceding start of SNAP

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Men disproportionately affected

Number of adult males in SNAP cohort increased by 73% 46% of 2005 cohort to 49% of 2009 cohort

Increase partially due to disruption in construction and manufacturing sectors

Men comprised 69% of SNAP recipients with manufacturing job history, 93% of those with construction job history

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Poor in Great Recession

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Two years later, how has the recession changed the composition of the SNAP caseload?

Compared two snapshot populations: June 2006 and June 2011

Caseload change – working age adults

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0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

All households Working age households*

SNAP Caseload: June 2006 v. June 2011

2006 2011

*Households headed by a non-disabled adult age 18 to 59+96%

+113%

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Demographic measures

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Female Male 18 to 24 25 to 44 45 to 59

SNAP Caseload June 2006 v. June 2011*

2006 2011

*Households headed by an adult age 18 to 59

+87%

+164%

+123%

+103%

+128%

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Household composition

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Single male nochild

Single femalechildren

Single female nochild

Multi-adultchildren

Multi-adult nochild

Single malechildren

SNAP Caseload: June 2006 v. June 2011*

2006 2011

*Households headed by an adult aged 18 to 59

+177%

+121%+51%

+103%

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Work history

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Not working in Second Quarter Working in Second Quarter Hours>120 Worked during SNAP receipt

SNAP Caseload: June 2006 v. June 2011*

2006 2011

*Households headed by an adult aged 18 to 59+158%

+69%

+74% +82%

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Single-person households

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

All Female Male 18 to 24 25 to 44 45 to 59

SNAP Caseload: November 2006 v. November 2011*

2006 2011

*Households composed of a single adult age 18 to 59

+152%

+121%

+177%

+199%

+141%

+129%

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Single-person households, 18 to 24

0

5,000

10,000

15,000

20,000

25,000

30,000

Females Males Not working in Second Quarter Working in Second Quarter

SNAP Caseload: June 2006 v. June 2011*

2006 2011*Households composed of a single adult age 18 to 24 +277%

+131%

+155%

+250%

Young adults

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18 to 24 year olds were part of a baby-boomlet that occurred between 1987 and 1993

This cohort is coming of age during a period of high unemployment

Potential long-term consequences

Poor in Great Recession

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Early in the recession, the story was job loss

That story has changed to joblessness

Males & young adults have been particularly affected