The poverty rate in the U.S. has dropped for the first time since 2006.
The Census Bureau, in its annual look at poverty in the U.S., said that the poverty rate in 2013 was 14.5 percent, down from 15 percent in 2012. The decrease was attributed to the growth in year-round employment by 2.8 million jobs, government officials said.
The median household income for families was $65,587 in 2013, and $31,178 for nonfamily households, which also was not statistically different from the 2012 levels. However, census officials said that income is 8 percent less than it was in 2007, the year before the U.S. entered the recession.
Officials also say that the number of children under 18 in poverty declined from the previous year for the first time since 2000.
The number of children in poverty dropped to 19.9 percent from 21.8 percent in 2012, and the number of children in poverty also declined to 14.7 million from 16.1 million.
A family of four is considered to be living in poverty if it brings in less than $23,830 in a year. A person is considered to be living in poverty if he or she makes less than $11,890.
The report also said that Hispanics were the only major race or ethnic group to have a statistically significant change in their poverty rate and the number of people in poverty. In 2013, the poverty rate for Hispanics was 23.5 percent, a decrease from 2012’s 25.6 percent. In addition, income for Hispanic households increased by 3.5 percent between 2012 and 2013 to $40,963.
The poverty rate for non-Hispanic whites was 9.6 percent in 2013, 27.2 percent for blacks and 10.5 percent for Asians.
Asians had the highest median household income in 2013 at $67,065, followed by non-Hispanic whites at $58,270 and blacks at $34,598.
The poverty level
The official poverty level is based on a government calculation that includes only income before tax deductions. It excludes capital gains or accumulated wealth, such as home ownership. As a result, the rate takes into account the effects of some government benefits, such as unemployment compensation. It does not factor in noncash government aid such as tax credits and food stamps.
