Homelessness Rising as Job Losses Mount (Apr 2009)
During the last three recessions, the number of Americans living in poverty — and the number living below half of the poverty line — has risen markedly, with the largest increases occurring in recessions with the highest unemployment. Families with incomes below half of the poverty line face the greatest risk of becoming homeless, as they have the most difficulty paying rent. For example, a family of four with income below half of the poverty line has a monthly income of less than $833, which itself falls below the $900 average cost of a modest two-bedroom apartment. As job losses have mounted in recent months, rising numbers of families are falling into poverty and losing their homes.
Since the recession began 16 months ago, the number of unemployed or underemployed Americans has risen by 10 million. Unemployment will almost certainly get worse before the job market recovers. Goldman Sachs recently projected that the unemployment rate, now at 8.5 percent, will rise to 9.6 percent by the end of 2009 and 10 percent by the end of 2010. Most economists anticipate that the unemployment rate will remain above pre-recession levels for several years.
Historically, changes in food stamp enrollment have closely tracked changes in poverty. Since the recession began, the number of people receiving food stamps has risen by 4.6 million, or 16.8 percent. In 19 states, at least one-fourth of children are now enrolled in the food stamp program. This is strong evidence that poverty is rising substantially.
New data indicate that homelessness among families with children is climbing sharply in many communities. In the nation’s capital, for example, the number of families with children living in emergency shelters or transitional housing or on the street increased by 25 percent in the past year. While no comprehensive national data are available, these and other local reports are supported by two recent national surveys. One showed that one in five responding school districts reported having more homeless children in the fall of 2008 than over the course of the entire 2007-2008 school year. This spike in homelessness is worsening what was already a large and persistent problem. Even before the current recession, an estimated 1.6 million people, including 340,000 children, were homeless and living in emergency shelters or transitional housing over the course of a year. Many more adults and children were living on the street, in shelters for victims of domestic violence, or temporarily in the homes of friends and relations. Homelessness can have adverse long-term consequences for children. Housing instability and homelessness lower school performance, increase the chances of a child having to repeat a grade, and reduce high school completion rates. Homelessness also puts children at greater risk of serious physical health problems.
Read more at source:
Center on Budget and Policy Priorities
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http://www.cbpp.org/cms/index.cfm?fa=view&id=2786
