Despite an increase in jobs, a University of Wisconsin report out Monday shows poverty has actually increased in Wisconsin.
The Wisconsin Poverty Report, published by the Institute for Research and Poverty, analyzes the poverty levels in the state annually. The report found there was a slight increase in poverty from 10.2 percent in 2012 to 10.9 percent in 2013.
Julia Isaacs, an expert on poverty and one of the researchers, said they expected to see a decrease in poverty with the increase in jobs, but the opposite happened. Isaacs thinks this is because of the type of jobs that are growing in the market.
“We think that people are getting low wage jobs, so even with more jobs there is more poverty,” Isaacs said.
The Wisconsin Poverty Measure is different from the federal poverty measure because it has broader definitions of economic need, resources and family units, a UW statement said.
The poverty rates range from 5 percent in Waukesha County to 18.2 percent in Milwaukee County. The central city of Milwaukee has a poverty rate of 29.2 percent. Dane County lands in the middle of the range with a poverty rate of 11.2 percent.
Isaacs said a lack in job growth, the payroll tax and out of pocket expenses could also have contributed to the rise in poverty. Isaacs said job growth is not back at the levels it was before the recession.
Robert Haveman, UW professor emeritus of economics and expert in poverty, said an increase in poverty reflects a stagnant job market.
“It doesn’t surprise me that poverty hasn’t gone down since the job market hasn’t increased very much,” he said. “It probably reflects a lack of opportunity in the job market.”
The study showed that child poverty has increased from 11 percent in 2012 to 11.8 percent in 2013 and the elderly rate from 6.2 percent in 2012 to 9 percent in 2013.
Isaacs said people have had higher out of pocket costs such as medical, work and child care expenses, which are difficult for families after the recession.
“Families are still struggling in what is a fragile economic recovery,” she said.
Isaacs said the federal payroll tax holiday could be a contributor to poverty, with the federal government eliminating a temporary cut to the tax in January, therefore decreasing citizens’ take home pay.
Isaacs said programs such as food stamps and income tax credits, along with the growth of the economy can help the issue of rising poverty in Wisconsin.
“I think that the combination of a strong economy, a strong safety net and continued job growth can help reduce poverty,” she said.
