The Great Recession and Poverty January 19, 2012 DHS Office of Forecasting, Research & Analysis 1 Suzanne Porter Oregon Department Of Human Services Office of Forecasting, Research & Analysis FAX:
Newly Poor in the Great Recession First detailed look at the work characteristics of SNAP households – working age and not disabled Compared two SNAP intake cohorts: CY 2005 and FY 2009 Expansionary vs. recessionary period Household structure, demographics, and work history of head of householder January 19, 2012 DHS Office of Forecasting, Research & Analysis 2
Comparing the 2009 with 2005 cohort: The total number of households increased by 58% The number of new households in 2009 was nearly as large as the total number of households in 2005 January 19, 2012 DHS Office of Forecasting, Research & Analysis 3
Multi-adult households nearly doubled Higher rates of growth among older households January 19, 2012 DHS Office of Forecasting, Research & Analysis 4
Full-time worker households nearly doubled Households experiencing a drop in earned income more than doubled Average percentage drop in earnings ≈ 1/3 January 19, 2012 DHS Office of Forecasting, Research & Analysis 5 Work history analyzed for the year prior to SNAP receipt Drop in earned income measured in quarter immediately preceding start of SNAP
January 19, 2012 DHS Office of Forecasting, Research & Analysis 6
Men disproportionately affected Number of adult males in SNAP cohort increased by 73% 46% of 2005 cohort to 49% of 2009 cohort Increase partially due to disruption in construction and manufacturing sectors Men comprised 69% of SNAP recipients with manufacturing job history, 93% of those with construction job history January 19, 2012 DHS Office of Forecasting, Research & Analysis 7
Poor in Great Recession January 19, 2012 DHS Office of Forecasting, Research & Analysis 8 Two years later, how has the recession changed the composition of the SNAP caseload? Compared two snapshot populations: June 2006 and June 2011
Caseload change – working age adults January 19, 2012 DHS Office of Forecasting, Research & Analysis 9
January 19, 2012 DHS Office of Forecasting, Research & Analysis 10 Demographic measures
January 19, 2012 DHS Office of Forecasting, Research & Analysis 11 Household composition
January 19, 2012 DHS Office of Forecasting, Research & Analysis 12 Work history
January 19, 2012 DHS Office of Forecasting, Research & Analysis 13 Single-person households
January 19, 2012 DHS Office of Forecasting, Research & Analysis 14 Single-person households, 18 to 24
Young adults January 19, 2012 DHS Office of Forecasting, Research & Analysis to 24 year olds were part of a baby- boomlet that occurred between 1987 and 1993 This cohort is coming of age during a period of high unemployment Potential long-term consequences
Poor in Great Recession January 19, 2012 DHS Office of Forecasting, Research & Analysis 16 Early in the recession, the story was job loss That story has changed to joblessness Males & young adults have been particularly affected