Poverty Quick Facts

Summer 2013

Summer extern Sharon Lin recently researched how the economy is disparately impacting the employment prospects of particular groups, namely: racial minorities and young people. Sharon has provided the summary of her research below.

Racial Disparities in Unemployment

The Economic Policy Institute reports on joblessness in North Carolina through the recession (from December 2008 until June 2009) and the ongoing recovery through the fourth quarter of 2012:

• In North Carolina, three groups (all workers in NC, white workers, and African American workers) have higher unemployment rates than the national rate for the same groups.
• The unemployment rate of African Americans in North Carolina is 17.3%, more than two and a half times that of whites (6.7%), and has been close to or more than twice the white rate for much of the last three years.
• Of the 24 states with large enough African American populations to track with quarterly CPS unemployment data, North Carolina has the fourth-highest African American unemployment rate.
• North Carolina has the second highest rate of manufacturing job loss since 1995. Many Black and Hispanic workers live and work in communities with declining industries which have been the slowest to recover from the recession.
• In conclusion, North Carolina is slowly recovering from the recent recession. Despite the reduction in overall unemployment, roughly one in six African American workers in North Carolina continues to be unemployed.

Youth Face High Unemployment

The Economic Policy Institute also has surveyed how the economic crisis has impacted employment prospects for young people across the country as well as specifically in North Carolina.

• In 2012, the overall unemployment rate averages 8.1% and the unemployment rate of workers under age 25 at 16.2% was exactly twice as high.
• In 2012, North Carolina's overall unemployment rate was 9.2% while the unemployment rate of workers under age 25 was 18.8%.
• Current unemployment and underemployment rates for young people nationally (both those who have graduated from high school and those who have graduated from college) are worse than 2007 rates.

Spring 2012

The latest 2011 American Community Survey was released in the fall of 2012. For poor people in our state, the numbers don't suggest much improvement in any area.

US Poverty Rate

• All: 15.2%*
• Below 150% of poverty: 24.7%

Poverty by Race in North Carolina

• All: 17.2%*
• White: 12.9%
• African American: 27.1%
• Hispanic: 34.2%
• Native American: 29.8%
• Asian: 13.8%

Child Poverty in North Carolina

• All under 18: 24.3%*
• Deep poverty: 7.6%
• Families with female-headed household with children under 18: 43.1%

Poverty by Educational Attainment in North Carolina

• No high school diploma: 30.1%*
• High school diploma: 14.7%
• Some college or associate degree: 10.9%
• Bachelor degree or higher: 3.9%

*Data obtained from 2009-2011 American Community Survey, 3-Year Estimates, released October 25, 2012