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The 2008 Report on Illinois Poverty

Creating a State of Opportunity. The 2008 Report on Illinois Poverty. An initiative of. Illinois Poverty Summit Precepts. People who work full time should not live in poverty All people who can work should be given the tools to work toward their fullest potential

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The 2008 Report on Illinois Poverty

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  1. Creating a State of Opportunity The 2008 Report on Illinois Poverty An initiative of

  2. Illinois Poverty Summit Precepts • People who work full time should not live in poverty • All people who can work should be given the tools to work toward their fullest potential • A safety net should be provided for those who cannot work • Eliminating poverty is an investment in Illinois’ future

  3. Defining Poverty • Income Poverty:2008 Federal Poverty Guidelines (FPL) • Extreme or Deep Poverty:living below 50% FPL • Low-Income or Near Poor:living between 100% and 200% FPL – struggle to meet basic needs due to rising costs • Asset Poverty:without sufficient net worth to subsist at the poverty level for 3 months - so that a crisis pushes people into poverty or homelessness

  4. Poverty Touches Us All • Nearly 40% of 25 year old Americans will experience poverty in their lifetimes. • Half of Americans report personally knowing someone that is working two or more jobs and still struggles to make ends meet. • Poverty exists in every county in Illinois and in every corner of the Chicago region.

  5. State of Poverty in Illinois and the Chicago Region

  6. Over 1.5 million Illinoisanslive in poverty, and an additional 2 million are at risk of falling into poverty. 685,970 or 5.5% of Illinoisans live inextreme poverty, below 50% of the federal poverty threshold. 853,063 or 6.8% of Illinoisans are living between 50% and 100% of the federal poverty threshold. 1,016,551 or 8.1% of Illinoisans are living between 150% and 200% of the federal poverty threshold. 988,100 or 7.9% of Illinoisans are living between 100% and 150% of the federal poverty threshold.

  7. Poverty in the Chicago Region • A total of 977,320 people in the Chicago area are living in poverty. • Over 400,000 are in the suburbs • Over 570,000 in Chicago • Another 1.2 million people in the region are at risk of becoming poor.

  8. Suburban counties now account for 41.5% of the region’s poor population, up from 23.9% in 1980. Poverty Growth By County, 1980 to 2006 (Number of People Who Are Poor)

  9. McHenry Lake 38.1% 5.7% Kane 36.1% DuPage Cook 63.3% 12.5% Will -9.4% Percent Poverty Rate Growth in the Chicago Region, 1980-2006

  10. Poverty growth in the suburbs is far surpassing population growth. • Since 1980 poverty in the collar counties increased at nearly double the rate of population growth. • More than 180,000 people in DuPage, Kane, Lake, McHenry, and Will counties are in poverty. • In DuPage County poverty growth has far outpaced population growth since 1980: • Population has increased 42% • Poverty population has increased 125%

  11. Poverty in DuPage County • A total of 44,294 people in DuPage County live in poverty. • That amounts to 1 in every 20 people in DuPage. • DuPage has experienced the greatest increase in poverty rates of any county in the region. The poverty rate increased by 63.3%. • Nearly 1 in every 5 households in DuPage County has an annual income below $35,000

  12. What Factors are Contributing to this Poverty Growth?

  13. increasingly difficult to find without education past high school, let alone without a high school diploma. Today meaningful job opportunities that pay family sustaining wages are

  14. Significant changes in the state’s economy over the past 25 years have changed the quality of job opportunities available in Illinois. One third of all jobs in Northeastern Illinois, which includes the Chicago region as well as Grundy, Kendall, and Kankakee Counties, are low-wage service jobs.

  15. Median annual earnings fell in every Chicago area county from 2000 to 2006. • The median household income in DuPage County is $73,677. This income declined by $8,470 since 2000, the largest decline in the region. • The median annual earnings in DuPage County in 2006 was $37,006. These annual earnings declined by $4,179 since 2000, the second largest decline in the region.

  16. Prices for Essential Goods and Services Have Risen Substantially Percent Change in Cost of Goods & Services in Chicago Region, 2000 - 06

  17. The gap between stagnant incomes and rising prices is stretching families thin. • Families are having much more difficulty meeting their basic needs • 42.3% of DuPage renter households are paying over 30% of their income for rent, up from 33.2% in 2000 • 18.6% are paying over half their income in rent It takes $50,687 in DuPage County for a family of 3 to make ends meet and be self-sufficient

  18. Debt, predatory lending, and foreclosures are draining savings and eroding the wealth of low-income families in Illinois.

  19. Spotlight on Challenges to Women’s Economic Well-Being

  20. Illinois women are more likely to be poor than men during their working and child-rearing years as well as during retirement or old age, and minority women are particularly impacted.

  21. Low earnings and low-paying occupations are key determinants of women’s poverty. Among women who work full time, year round: • The median annual income for Illinois women is $35,192, which is $11,518 less than Illinois men. • Women make less than men in every single industry in Illinois as well as inevery single class of paid workers and every occupation group. • If women were paid the same as comparable men, even if only for the hours women currently work, poverty rates would fall by half for both single mothers and married women.

  22. Women are much more likely to be in a caregiver role than men, impacting their financial health. • 84%of caregivers • make adjustments to • their work schedules • 33% decrease hours • 22% take a leave of • absence • 20% switch from full • to part time • 16% quit their job • 13% retire early • Caregivers can incur significantlosses in career development, salary, and retirement income, and can incur substantial out-of-pocket expenses as a result of their care giving obligations. • Nearly 2/3 of caregivers report that care giving had a direct negative impact on their earnings.

  23. Looking toward the future, women face having fewer assets to fall back on and low retirement income. • 26.7% of female-headed Illinois households are asset poor compared to 14.8% of male-headed households. • Illinois households headed by women have a median net worth of $50,200 compared to men’s $92,200. • Having spent fewer years in the workforce and having received lower wages results in less retirement savings and social security for women, making older women particularly vulnerable to poverty.

  24. Other Areas of the 2008 Report on Illinois Poverty to Consider: • Opportunities for change throughout • Discussion of national and state efforts to reduce poverty • County-level data in the appendix • Congressional district data in the appendix

  25. For More Information: Contact: Amy Rynell 773-336-6074 arynell@heartlandalliance.org And visit our website: http://www.heartlandalliance.org/maip

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