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This symposium discusses the hidden impact of recession on children, including the long-term effects of unemployment and child poverty rates in Illinois. It also highlights the need for policy investments to secure the future of children and families.
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ILLINOIS KIDS COUNT SYMPOSIUM March 5, 2010
Introduction • The most visible signs of recession don’t reveal full impact on children • Children are hidden casualties of the economic crisis • Recessions have lasting effects on child poverty
Effects of Unemployment When parents lose a job, children are more likely to: • Struggle in school • Repeat a grade • Have behavior problems
Long-Term Effects of Child Poverty Children growing up in poverty are likely to have: • Lower levels of educational attainment • Diminished employment prospects • Greater health problems
Child Poverty in Illinois, 2008 (before recession) • Children in poverty: 530,000 • Child poverty rate: 17% (18% in U.S.) • Children as share of Illinois residents: 25% • Children as share of poverty population: 35%
Illinois Poverty Rates by Age, 2008 Children 17% Under age 6 20% Ages 6-17 15% Ages 18-64 11% Age 65 & over 9%
Recession and Child Poverty • Poverty rates will be higher for 2009 • Poverty expected to continue rising even after economy begins to recover • Child poverty in U.S. projected to reach 24% in 2012 • Expected rate in Illinois: 22% (more than 650,000 children)
Trends Before Recession:Family Incomes Lag Behind Inflation Change in median family income, adjusted for inflation, 1999-2008 All families -2.6% White -0.2% Black -8.8% Latino -6.7% Asian +1.9%
Trends Before Recession:Child Poverty in Illinois 2000-01 2007-08 All children 15% 17% White 8% 9% Black 37% 39% Latino 19% 22% Asian 9% 9%
Trends Before Recession: Homeless Children • More than 25,000 homeless students in Illinois public schools in 2007-08 • Evidence that homelessness has become much worse since then
Economic Security Programs: Unemployment Insurance • End of 2009: one in seven children in U.S. lived with unemployed parent • Unemployment Insurance considered first line of defense in a recession • But majority of unemployed workers do not receive regular UI benefits
Food Stamp Program • About half of Food Stamp recipients in Illinois are children • Illinois residents receiving Food Stamps June 2007: 1.26 million June 2009: 1.50 million (22% increase) • Food Stamps and federal EITC are the most effective programs in lifting children above poverty level
Policy Gains for Illinois Children • Early childhood care and education • Health care coverage • Child care assistance for low-income families • Mental health services • Child welfare and prevention strategies
Securing the Future for Children and Families Recession and state fiscal crisis put these policy investments in jeopardy Policy challenges: • Protect families in need • Build on successful policies • Strengthen foundation for prosperous future
Illinois Kids Count 2010 report is available at: www.voices4kids.org/library/kidscount.html