Since the Great Recession, poverty in New
Jersey has increased at annual rates not seen
in many decades, and shows no signs of abating.
Poverty continued to grow in 2010 – reaching
the highest level in half a decade.
About 24 percent of the total population was
below 200% of poverty in that year, a significant
increase from the previous year.
The number of people living in poverty crossed
the 2 million mark in 2010.
There were more than 2 million 54,000 people
living in poverty in that year.
Nearly 280,000 additional individuals have
been added to the poverty ranks since the
beginning of recession in 2007.
In 2010, poverty for the white, non-Hispanic
population stood at 5.8 percent, whereas poverty
for Black and Hispanic New Jerseyans was over
19 percent – which is more than 3 times
the white, non-hispanic poverty rate.
While all race and ethnic groups experienced
an increase in poverty, Hispanic residents
experienced the highest rise - poverty for
this group increased from 18.3% in 2009 to
19.9% in 2010.
Historically, poverty among Hispanics has
been lower than poverty among blacks.
In 2009, however, the Hispanic poverty rate
surpassed the black poverty rate and this
trend continued in 2010.
In 2010, the number of Hispanics in poverty
outnumbered the white, non-hispanics for the
first time ever.
There were more than 305,000 Hispanics below
poverty, about 9,800 more than white, non-hispanics
in poverty.
Especially disturbing, almost one third of
all children in New Jersey were living in
true poverty in 2010- 619,000 in total.
If we look at the number of children living
in poverty, we find that Hispanic children
form the largest group.
The number of Hispanic children living in
poverty exceeded 120,000 in 2010.
The number of Black children stood at about
84,000 and white, non-Hispanic children around
72,000 in 2010.
The number of working age New Jersey residents
living in poverty rose during the Great Recession,
with more that half a million in poverty in
2010.
The oldest among the elderly (people 75 years
or over) had the highest proportion below
200% of poverty in 2010.
Those 18-24 followed with 31.3 percent in
poverty.
And 30.4 percent of children were below 200%
of poverty – the third highest poverty rate
among all age groups.
Young adults between 18 to 24 years of age
experienced a 39.1% increase in the numbers
below poverty.
– the highest among all age groups.
Between 2005 and 2010, the number of people
living below 200% of poverty increased by
more than 235,000 people.
The number of people in the middle income
groups decreased during this period - by more
than 100,000 people.
New Jersey’s unemployment rate continues
to remain higher than at any time since 1980.
Since the end of the recession it has remained
above the 9 percent mark.
Resident employment, which declined substantially
during the recession, remains well below the
level going into the recession and in the
33 months since the end of the recession has
hardly risen above the employment level at
the end of the recession.
The employment population ratio, which is
the percentage of the working population that
is working, declined considerably during the
recession and remains at a level last experienced
about 30 years ago.
Likewise the labor force participation rate,
which is the percentage of the working population
in the labor force, remains stuck at a level
not seen since the early 1990s, the consequence
of the large increase in discouraged workers
who are no longer actively seeking employment.
The underemployment rate provides a broader
measure of the extent of unemployment.
It includes not only the officially unemployed
but also all those working age people who
are so discouraged that they have dropped
out of the labor force but would take a job
if offered one as well as those who are working
part-time but would prefer to work full time.
Since the recession the underemployment rate
has continued to rise and was 16 percent in
2011, considerably higher than the official
unemployment rate.
As the recession progressed more and more
people have remained out of work for longer
time periods.
In 2010, more than half the officially unemployed
had been out of work for more than six months.
Since the beginning of the recession, the
number of households suffering from food insecurity
has steadily risen.
The average for 2008-2010 was 12.1 percent,
which translates into about 380,000 households
in New Jersey.
Both adult and child food stamp usage has
soared since the end of the great recession
in June 2009.
More and more people are drawing on this important
safety net program to help them meet their
basic needs.
Food stamp usage is not the domain of any
particular racial or ethnic group in New Jersey.
In 2010, its usage was more or less evenly
divided between the three major racial and
ethnic groups.
In fact, the increase in food stamp usage
has been particularly large among the White
and Hispanic populations.
Although TANF (Temporary Aid to Needy Families)
and GA (General Assistance) are important
safety net programs, increased participation
in these programs since the recession has
been slight.
In fact, participation in the GA program has
declined recently as a result of stricter
regulations that have been put in place limiting
eligibility.
Emergency assistance, a program designed to
alleviate homelessness by providing housing
assistance to households who are receiving
various forms of welfare assistance, has risen
steadily since the recession and continued
to increase thereafter.
New Jersey has the third highest housing costs
in the nation, trailing only Hawaii and California.
In order to afford a 2-bedroom apartment at
the fair market rent of $1,302, a household
would need an annual income of $52,081, the
equivalent of three and a half times the minimum
wage in the state.
More than one-half of New Jersey renter households
paid more than 30 percent of their income
in rent in 2010, an amount considered to be
excessive.
Nearly one third paid more than 50 percent.
The middle class in New Jersey have increasingly
seen their rent and utilities take up a larger
proportion of their income since the recession.
A larger percentage of children in New Jersey
have been receiving health insurance coverage
since the recession.
In particular, coverage improved for children
living in households below 200 percent of
the poverty level.
On the other hand, an increasing percentage
of adults are without health insurance coverage
and, particularly, adults with low incomes
living in households below 200 percent of
the poverty level.
By any measure, poverty has grown much more
severe in New Jersey over the past few years,
and shows no signs of improvement.
