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Census finds US poverty rate rose in 2008, set to rise further this year

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  • In the recession last year, the nation’s poverty rate climbed to 13.2 percent, up from 12.5 percent in 2007, according to a report released Thursday by the Census Bureau.

    This was the first significant increase in poverty since 2004. It also portends larger increases this year, as unemployment numbers have risen far more than in 2008, economists said. According to the census data, 39.8 million residents lived below the poverty line in 2008. The poverty line in 2008 was defined as $22,025 for a family of four.

    The share of American residents who said they lacked health insurance in 2008 remained steady, at 15.4 percent, or 46.3 million people. But the total masked some more worrisome trends that are helping to drive the debate over national health care reform.

    Continuing an eight-year trend, the number of people with private or employer-sponsored insurance declined, while the number of people relying on government insurance programs including Medicare, Medicaid, the children’s insurance program and military insurance rose.

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    The share of children who were uninsured declined, to 9.9 percent from 11 percent in 2007, apparently because of the federal government’s special efforts to insure low-income children. But the share of adults aged 18 to 64 without health insurance climbed slightly, to 20.3 percent in 2008 from 19.6 percent in 2007.

    In another sign of both the recession and the long-term stagnation of middle-class wages, median family incomes in 2008 fell to $50,300, from $52,200 the year before. This wiped out the incomes gains of the previous three years, the report said. Adjusted for inflation, median family incomes were lower in 2008 than they had been a decade previously.

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