Poverty and Share of Americans Without Health Insurance were Higher in 2007 — and Median Income for Working-Age Households was Lower — Than at the Bottom of Last Recession
The number of Americans in poverty climbed by 816,000 in 2007, while the poverty rate remained statistically unchanged, overall median income rose modestly, and the number and percentage of Americans without health insurance fell somewhat, according to Census data issued today. But the poverty rate remained higher, median income for working-age households remained lower, and the number and percentage of Americans without health insurance remained much greater than in 2001, when the last recession hit bottom.
This marks the first time on record that poverty and the incomes of typical working-age households have worsened despite six consecutive years of economic growth.[1] The new data show that in terms of poverty and median income, the economic expansion that started at the end of 2001 was the worst on record. The data provide fresh evidence that the gains from the expansion were quite uneven and flowed primarily to high-income households.
Moreover, the weakening of the economy makes it very likely that in 2008, poverty will rise, median income will fall, and the number of uninsured will rise.
The new Census figures show:
- The poverty rate stood at 12.5 percent in 2007, which was statistically unchanged from the 12.3 percent level for 2006 but well above the 11.7 percent level for 2001. The child poverty rate climbed from 17.4 percent in 2006 to 18.0 percent in 2007.
- Overall median income increased from $49,568 in 2006 to $50,233 in 2007, compared to $49,455 in 2001. But median income for working-age households (i.e., those headed by someone under 65) remained statistically unchanged from the 2006 level and was $1,100 below its level in the recession year of 2001 — and $2,000 below its level for 2000 when the previous economic expansion peaked. (All median income figures are adjusted for inflation.)
- The percentage of Americans without health coverage fell from 15.8 percent in 2006 to 15.3 percent in 2007, and the number of uninsured declined by 1.3 million to 45.7 million. The improvement occurred because the increased enrollment in public programs — notably Medicare and Medicaid — more than offset a decline in the portion of the population with employer-sponsored coverage. The number and percentage of Americans without insurance remained, however, well above the figures for 2001. In that year, 39.8 million Americans, or 14.1 percent of the population, were uninsured.
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