ECONOMICS: AN INTRODUCTION

Leading economists have called the current recession, which began in December 2007, the most serious economic crisis since the Great Depression. A Gallup poll conducted in September 2009 indicates that 53 percent of U.S. consumers believe economic conditions are worsening. This number is down from 85 percent in September 2008 and decreased by nearly 10 percent just from July 2009. But while some experts predict that the worst is over, a June 2009 report by the Brookings Institution underscores that there exists a "very real possibility" that the apparent easing in the economy’s decline may be followed by little or no growth for several quarters and even another negative turn.

In March 2009, the national unemployment rate rose to its highest level in more than a quarter century. A November 2008 report by the Center on Budget and Policy Priorities estimated that if unemployment were to reach 9 percent in 2009, between 2.6 and 3.3 million additional children would fall into poverty. That number was surpassed in May 2009 -- when unemployment rose to 9.4 percent, then reached 9.7 percent by August 2009. According to the U.S. Department of Labor, since the recession began in 2007, the number of unemployed persons has risen by 7.4 million, and the unemployment rate has grown by 4.8 percentage points.

After a decade of decline, the proportion of children living in low-income families is rising again, a trend that began in 2000. According to the National Center for Children in Poverty, the number of children living in poverty increased by 15 percent between 2000 and 2007. From 2006-2007, the poverty rate for children increased from 17.4 percent to 18 percent, while it remained statistically unchanged for all other ages groups. (See state-level data.) In 2007, nearly two in five children, or 39 percent, lived in low-income families earning incomes below twice the federal poverty level. The poverty rate for children also varies substantially by race, so that black and Hispanic children are largely overrepresented. Today, more than 13 million American children live in families with incomes below the federal poverty level -- which rose from $21,200 a year for a family of four in 2008 to $22,050 in 2009.

Family structure plays a crucial role in economic status. (See trends in poverty and family structure.) Female-headed families are four to five times more likely to be poor than are married-couple families. In 2006, more likely than one-third of U.S. births (38.5 percent) were to unmarried women. High divorce rates and falling marriage rates also factor into the equation (see federal data).

According to a May 2009 report by First Focus, recession-induced childhood poverty has serious, measurable, long-term negative effects -- chiefly that children who fall into poverty during a recession continue to fare far worse than their peers for decades into their adult lives. The report finds that, as adults, these children will be morely likely to live in households with lower incomes, earn less themselves and live in or near poverty. In addition, they will achieve lower levels of education, will be less likely to be gainfully employed and report poorer health than their peers who did not fall into poverty during the recession. 

A May 2009 report by the Urban Instiute also finds that the recession may create ongoing instability for some families, with particularly profound and lasting effects on children. According to the report, which focused on foreclosures , a child’s frequent school change and lack of a stable home are related to poor social development, academic performance and educational attainment. This is alarming given that foreclosure starts from 2007-2008 more than doubled the rate in 2005-2006, and foreclosures nationwide are expected to reach 2.4 million in 2009.

What's more, while the number of impoverished families continues to increase, the Center on Budget and Policy Priorities recently found that the total number of families with children receiving cash assistance has remained essentially flat between March 2008 and March 2009. Congress recently included $5 billion in emergency TANF provisions in the recovery act. However, it will be months until it becomes clear how much of, as well as in what ways, the provisions will be used and what the overall impact will be.

If you don't find what you need on this page, you may visit these pages for a longer list of sources.

Hunger Programs
Housing/Homelessness
Demographics/Immigration
CHIP/Medicaid
TANF/EITC/Welfare
Work     

• Bureau of Labor Statistics. It produces data on unemployment, labor-force and employment projects, consumer expenditures, prices and inflation, benefits, etc.

• Employment Standards Administration. It oversees compliance with the Family Medical Leave Act and with youth employment laws, among others.

• Employment and Training Administration. It has programs aimed at adults and youth.

• Job Corps. It aims to help youths 16 through 24.