This FAQ answers common questions about poverty in the U.S. These include how many people live in poverty and who they are, as well as dynamics that affect life in poverty, such as geography, age, race and health.
The official poverty rate is 12.3 percent, based on the U.S. Census Bureau’s 2017 estimates. That year, an estimated 39.7 million Americans lived in poverty according to the official measure. According to supplemental poverty measure, the poverty rate was 13.9 percent.
Each year, the U.S. Census Bureau counts people in poverty with two measures. Both the official and supplemental poverty measures are based on estimates of the level of income needed to cover basic needs. Those who live in households with earnings below those incomes are considered to be in poverty.
Poverty thresholds are the income dollar amounts used by the U.S. Census Bureau solely as a statistical yardstick to determine a household’s poverty status. They are issued each year in September and are the basis for determining the national poverty rate.
The U.S. Census Bureau defines “deep poverty” as living in a household with a total cash income below 50 percent of its poverty threshold. According to the Census Bureau, in 2016 18.5 million people lived in deep poverty. Those in deep poverty represented 5.8 percent of the total population and 45.6 percent of those in poverty.
The War on Poverty began in 1964 with a stream of legislation that in two years would build the foundation of today’s social safety net. Today’s safety net includes means-tested programs, which require proof of low income to qualify, as well as major benefit programs which are not based on income, such as Social Security and Medicare.
A minimum wage is the lowest wage that employers may legally pay to workers. The first minimum wage law was enacted in 1894 in New Zealand.
With the passage of The Fair Labor Standards Act of 1938 (FLSA), the U.S. minimum wage was initially set at $0.25 per hour for covered workers. Since then, it has been raised 22 separate times–most recently, in July 2009, to $7.25 an hour.
FSLA provided a number of federal protections for the first time including
The “working poor” are people who spend 27 weeks or more in a year in the labor force either working or looking for work but whose incomes fall below the poverty level. According to the U.S. Bureau of Labor Statistics, about 9.5 million of people who spent at least 27 weeks in the labor force were poor. That year, the working poor comprised 6.3 percent of all individuals in the labor force.
In 2014, about 1.3 million U.S. workers age 16 and over earned exactly the prevailing federal minimum wage of $7.25 per hour. Another 1.7 million had wages below the federal minimum. Together these workers make up 4 percent of all hourly paid workers.
In 2015, poverty rates across the four Census geographic regions ranged from 11.7 percent in the Midwest, 12.4 percent in the Northeast, 13.3 percent in the West and 15.3 percent in the South. Because of the South’s largest share of the total U.S. population, it has the largest number of people who live in poverty compared to any other region.
The U.S.D.A.’s Economic Research Service monitors the extent and severity of food insecurity in U.S. households through a supplement to the Current Population Survey. Responses to a series of 18 questions are used to determine whether a household is food insecure.