1 in 4 children in New York City now live in poverty
Driving the Increase: The End of Enlightenment in the Pandemic Era
The biggest reason for the increase in poverty, both nationally and in New York, was the end of some pandemic-era government policies, such as the expanded child tax credit, enhanced unemployment insurance, and cash payments that helped low-income families keep pace with rising poverty. costs, said Christopher Wimer, director of the Center on Poverty and Social Policy at Columbia University and co-author of the report.
“It's disheartening,” said Dr. Wimer. After several years of reducing poverty in the city, he added, “we are going in the wrong direction.”
The researchers used a measure called the Supplemental Poverty Measure, which takes into account both income and non-cash assistance such as food stamps, as well as the local cost of living. It differs from the official U.S. Census poverty measure, which only counts cash resources, but the additional measure is also widely used by the government.
In 2022, a New York City renter family with two children was considered below the poverty line under the supplemental measure if it earned less than about $44,000. The poverty line for a single adult renter was $20,340.
Why it matters: The city's economic recovery has been uneven
The rise in poverty underlines the stark disparities in New York.
According to the report, Black, Latino and Asian New Yorkers were about twice as likely as white residents to live in poverty, and women were more likely than men to be unable to meet their basic needs.
A major reason for the differences is the lopsided employment recovery, said James Parrott, director of economic and fiscal policy at the New School's Center for New York City Affairs.
Although the city said in October that it had regained all the jobs lost during the pandemic, the jobs that have returned were mainly in low-wage sectors such as home health care, which pays workers an average of $32,100 a year. The median household income in New York City is about $75,000.
At the same time, retail, a higher-paying industry that disproportionately employs Black, Latino and Asian workers, lost more jobs than any other industry, Dr. Parrott.
Charles Lutvak, a spokesperson for the mayor's office, said that “Covid-19 has taken a disproportionate toll on our most vulnerable neighbors,” but pointed to a number of initiatives, including a summer youth employment program and expanding the city's revenue sources . tax credits, as signs of progress.
But the average unemployment rate among Black New Yorkers was 9.3 percent in 2023, more than three times higher than among white residents, Dr. Parrott.
Background: Childcare costs increase poverty
According to the report, as many as 25 percent of New York City children would live in poverty by 2022, the highest rate since 2015.
It was a sharp turnaround from 2021, when the expansion of the federal child tax credit program reduced child poverty in New York City by 30 percent, said Chloe Sarnoff, director of policy research at Robin Hood.
The program temporarily increased the annual tax credit from $2,000 to $3,600 for eligible children under the age of six, and from $3,000 for older children. But Congress failed to expand the benefits.
The need for government assistance is evident at Grand Street Settlement, a nonprofit social services organization in Lower Manhattan and Brooklyn, which has seen its food bank numbers grow to 2,800 people per month, up from 500 before the pandemic.
A growing childcare crisis is fueling rising poverty rates. “If we want to reduce poverty in New York City, we must invest in child care,” said Robert Cordero, the group's CEO, adding that the city's declining support for the free preschool program makes it harder for parents to to make ends meet.
Shavon Johnson, 30, who is studying to become a medical assistant, enrolled her 4-year-old son in a free daycare program offered by Grand Street, and said she couldn't imagine what she would do without the support.
“I would be homeless” if it weren't for the program, she said.
What's next: a push for more help
The report recommends permanently expanding public benefits such as the federal child tax credit and New York's Empire State Child Credit, a tax credit for New York state residents first introduced in 2006.
Robin Hood recommends expanding the Empire State Child Credit to a maximum benefit of $1,000 per year, per child, instead of $330, and eliminating income criteria that disproportionately leaves out black and Hispanic families.
The changes could lift up to 76,000 children out of poverty, according to an analysis by Columbia University.
The report also supported zoning reforms that would increase the supply of affordable housing, and expanding rental subsidy vouchers to keep low-income residents in their homes.