The following is a snapshot of U.S. poverty statistics, including the overall poverty rate and the ranking of poverty rates by race and other population attributes. The data is from the U.S. Census Bureau for the year 2023, released on September 11, 2024 [i]. The data is presented from the highest category experiencing poverty to the lowest.
The Lowest Poverty Rate
The poverty rate of 10.5% in 2019 was the lowest recorded poverty level since the Census Bureau began reporting poverty in 1959.
Ever since the poverty level has been tracked in the United States, a stubborn 10% of the population has been in poverty. For further analysis and discussion, see Poverty and Spending over the Years.
U.S. Poverty Information
Here is general information on the definition of poverty, how poverty is measured, a comparison to world poverty, the poverty gap, and the war on poverty.
Poverty Rankings
The percentage of Americans in a poverty status
- Adults not working – 30%
- Adults without a high school diploma – 25%
- Adults with a disability – 22%
- Single mother families – 22%
- Foreign born non-citizens – 19%
- Single individual households – 19%
- Black Americans – 18%
- Hispanic Americans – 17%
- Children – 15%
- Single father families – 11%
- Seniors – 10%
- White Americans – 8%
- Married couple families – 5%
- Adults with a college degree – 4%
- Full-time working adults – 2%
Poverty Level History
Here is the history of the poverty level.
The Official Poverty Rate
The Official U.S. poverty rate decreased to 11.1% in 2023 from 11.5% in 2022 and 11.6% in 2021. This is the Census Bureau’s Official poverty measure, which measures individual and family financial independence. More.
SPM Poverty Measure
The Supplemental Poverty Measure (SPM) was 12.9% for 2023. This is an estimate of the number of Americans living in poverty.
Consumption Method
Using Consumption as the measurement for those living in poverty yields a rate of 6% for 2022. More.
Full U.S. Poverty Statistics Are Shown Below:
The total population of the U.S. was 331.3 million in 2023, and 36.8 million were in poverty. Therefore, the overall Poverty Rate for the year 2023 was 11.1%.
U.S. Poverty Statistics – Age of the Population
The Poverty Rate for seniors was 9.8%, which is lower than the population as a whole of 11.1%. This is due to the Social Security and Medicare Programs, which have worked well at protecting seniors from poverty. Seniors in a poverty status generally did not work ten or more years and pay enough taxes into the Social Security system to generate an adequate retirement pension.
The child Poverty Rate is 15.3%; about one in six children are in poverty. This is a disturbing poverty statistic to many Americans because children are helpless to influence their living conditions. Many of these children live in single-parent families, as shown below.
U.S. Poverty Statistics – Race
While the poverty rate for the population is 11.1%, the rate varies greatly by race. Blacks have the highest poverty rate at 17.9%, and non-Hispanic whites have the lowest at 7.7%.
The Poverty rate for Blacks and Hispanics is more than double that of non-Hispanic Whites.
U.S. Poverty Statistics – Families
Overall, 8.3% of the families in America are in poverty. Families headed by a single mother have a Poverty Rate of 21.8% – almost five times higher than married-couple families.
There are 15.2 million families headed by a single mother, representing 18% of all families in America. But 3.3 million of these families are in poverty, accounting for an astounding 47% of all families. These statistics are the basis for the conclusion that marriage is one of the best defenses against poverty.
U.S. Poverty Statistics – Population in Families
There are 267.4 million Americans in families and 64.4 million single individual households. 9.1% of those in families are in poverty versus 19.2% of those living alone. Therefore, one in ten families is in poverty compared to one in five individuals living alone.
Single parents have a poverty rate of 19.2% and are about four times more likely to be in poverty than married-couple families with a poverty rate of 4.6%.
U.S. Poverty Statistics – Working-Age Adults
Adults who work full-time have a low Poverty Rate of 1.8%, which is unsurprising. The 2.1 million full-time workers in poverty generally have low-paying jobs, such as a minimum wage job paying $16,000 per year, and have two or more children, thus pushing the family into poverty.
43.6 million adults aged 18 and 64 (working age) are not working. 13.0 million are in poverty, or 29.7%. They total 22% of working-age adults but account for 65% of working-age adults in poverty.
Here is information on why adults are not working.
U.S. Poverty Statistics – Disability
16.5 million working-age adults have a disability, representing 8% of the workforce [ii]. They have a Poverty Rate of 22.3%. While this is a high poverty rate, it is less than the nonworking adult rate of 29.7% (See working-age adults above).
U.S. Poverty Statistics – Residence
The Poverty Rate for those living in cities is less than for those living in rural areas. Many Americans would guess that low-income Americans are disproportionately from metropolitan areas, but that is not the case.
U.S. Poverty Statistics – Nativity and Citizenship
Foreign-born non-citizens have a Poverty Rate of 18.8% – almost twice as high as foreign-born, naturalized citizens of 9.4%.
These citizens comprise 8% of the U.S. population but account for 14% of all Americans in poverty.
Foreign-born naturalized citizens had a Poverty Rate of 9.2%, slightly less than the population as a whole of 11.1%.
U.S. Poverty Statistics – Educational Attainment
The educational level attained by individuals has a dramatic impact on poverty. 25.1% of adults over 25 without a high school diploma are in poverty versus 4.1% for those with a college degree.
More Information
Here is information on the poverty gap, which defines the resources necessary to move individuals and families out of poverty ===>
Here is information on the U.S. Poverty Rate versus welfare spending =>
Here is a summary of welfare programs in the U.S. ===>
History of the Poverty Level
The chart to the left shows the history of the Official and SPM poverty rates since their inception. The SPM Poverty Level has only been reported since 2009. The rate has generally been higher than the Official Rate as expenses added to the Poverty Threshold, including health care costs, have overridden welfare receipts. During the COVID-19 pandemic, welfare payments were dramatically increased, particularly the Child Tax Credit, which led to a much lower SPM rate. This data forms the foundation for the argument for extending the Child Tax Credit.
The Official Poverty Level has remained at 10.5% to 15.1% for over 50 years. Welfare spending has increased dramatically over this timeframe but has not lowered the Official Poverty Rate, meaning a stubborn 10% of the population has not attained financial independence. More.
Comparison of Official and SPM Poverty Measures
The Census Bureau released two poverty figures with different assumptions and conclusions. The Census labels the studies “Official” and “SPM” (Supplemental Poverty Measure). The official rate is shown and described on this webpage. It is a measure of income individuals and families earn, compared to a poverty threshold. Income below the threshold is defined as being in poverty. The Official measure is a determination of financial independence. Income is from jobs, self-employment, and investments. Therefore, an income level greater than the poverty threshold means the individual or family has earned enough to transcend poverty. They are financially independent.
The second measure, the SPM, adds government benefits to the individual or family’s income. Therefore, it can be considered a measure of whether the individual or family is living in poverty after government benefits are included in the analysis. These benefits come from COVID stimulus payments and entitlement programs, including welfare from federal, state, and local sources. For instance, SNAP payments for food assistance are included as income under the SPM measurement.
The SPM also uses a different method to measure the poverty threshold. It looks at the costs of living in various geographic areas and establishes a poverty level unique to each area based on housing, food, and other living expenses. It also factors in expenses such as taxes, healthcare, and childcare costs as deductions to income. Ultimately, if an individual or family has an adjusted income lower than the poverty level, they are considered to live in poverty.
The Official methodology reports a poverty rate of 11.1% for 2023. The SPM reports a 12.9% poverty rate. Therefore, 11.1% of the population does not earn enough to be financially independent of poverty. However, 12.9% of the population lives in poverty after the inclusion of government transfer payments, considering living expenses by area and health care costs. The SPM does not include charitable contributions available to low-income Americans, such as food banks and health services. Therefore, the 12.9% rate is probably high.
The highest level of government benefits ever distributed in America occurred in 2021. This resulted from various COVID-19 pandemic legislation, including stimulus payments, expanded unemployment payments, and increases to the Child Tax Credit, SNAP, and other welfare programs. The high benefits resulted in a low SPM poverty rate of 7.8% in 2021. As the benefits lessened as Covid benefits expired, the SPM poverty rate increased to 12.9% in 2023.
While the COVID-19 legislation in 2020 had bipartisan support, the legislation in 2021 had no Republican support in Congress. The results of the legislation are becoming more apparent with time but remain controversial. On the one hand, they made life easier for many Americans, pulling almost 3% of the population out of poverty. On the other hand, the payments were financed by deficit spending (“printing” more money), which arguably caused the high inflation levels experienced in late 2021 and throughout 2022 (more). It also has contributed to the lower levels of adults participating in the workforce, as analyzed below. See also Covid and work.
The Measure of Consumption Poverty
A University Report estimates that “Consumption Poverty” is 6% of the U.S. population for the year 2022. The report looks at annual spending (consumption) from families and individuals and turns that into a poverty rate. They do that by starting with a spending poverty level in 1980 that equates to the Census poverty level and then tracking changes in spending over the succeeding years.
Why is the consumption poverty rate so much lower than the Census Bureau rate?
There are three reasons, according to the AEI Report:
- The Poverty Threshold, which is the basis for the income standard in the Census work, is overstated due to the impacts of inflation over the years. The Census Bureau raises the Poverty Threshold each year based on an estimate of the consumer price index, but this figure overstates the real increase in costs. Consumption measures the actual expenditures people make.
- Income, which is the basis for the Census figures, is generally underreported in surveys, whereas consumption is more accurately reported.
- Household income in the Census Bureau’s Original Method doesn’t include welfare payments. They are included in the SPM Method but are understated. The SPM Method fails to reflect the full array of resources, cash and noncash, that families can use to meet their needs.
The Homeless Population
Americans intuitively know that the homeless population is living in poverty. The official homeless count totals about 600,000 Americans, which equals about 1.5% of those in poverty. More.
Unemployment Rate Compared to Poverty Rate
The graph to the right shows the poverty level compared to the unemployment rate from 1963 to present [vii]. Despite low unemployment, poverty has never dropped below 10% of the population. It appears as though jobs and opportunity alone do not explain a stubborn 10% of the population in poverty. This is the case, as shown below, why people in poverty are not working.
Here is a comparison of welfare dollars spent per person in poverty versus the poverty rate for the last 50 years.
Coronavirus and its Impact on Working Adults
The Coronavirus Epidemic caused an economic shutdown throughout 2020 and 2021. As shown in the chart to the left, the labor participation rate declined during the Pandemic and has not recovered yet [viii]. The Labor Participation Rate is the percentage of working-age adults that are employed. In December 2019, before the Pandemic, the Labor Participation Rate was 63.3%. In December 2022, the rate was 62.3%, representing a loss of about three million workers. See more at Covid and work.
Analysis of Working-Age Adults In Poverty
In 2020, 20.6 million working-age adults (18-64 years of age) were in poverty (this figure increased to 21.0 million in 2021). 13.1 million, or 63%, did not work in the year, and another 6.0 million, or 29%, worked part-time or spent at least part of the year out of the workforce. Only 1.6 million, or 8% of working-age adults in poverty worked full-time. People working full-time and in poverty have low-paying jobs and a family size that puts them and their spouses and children in poverty. For example, a spouse working a $10.00 an-hour full-time job would earn approximately $20,800 in a typical work year which is below the poverty threshold for a family of four. Individuals working part-time or seasonal jobs also often don’t make enough to raise their income above the poverty threshold.
Why Those In Poverty Are Not Working
There were 13.1 million working-age adults in poverty in 2020 who did not work in the year. The chart to the left shows their reason for not working [iii]. This data originates from Census Bureau Report POV-24, which was published for the last time covering the year 2020.
- School. Students are generally young and just getting started in life. It makes sense they would not have an annual income greater than the poverty threshold and be labeled as being in poverty. However, even though students are often in poverty they are usually on a path to getting a good job which moves them out of poverty.
- Retired early. Individuals who retire early (below age 65) and are seeking no new income most likely have past earnings and pensions that are adequate for their lifestyle. Poverty status measures annual income only and does not take into account assets acquired in the past.
- Disabled or ill. This is a broad class of individuals who have mental or physical disabilities preventing them from working. This category can include those who are not capable of earning a living by themselves, such as severely handicapped adults. The category also includes individuals who are prevented from working in their trade because of a physical injury. To return to the workforce, these individuals require a move to a different trade, which often requires training or education.
- Home or Family. This is a very broad category of poverty and includes a variety of reasons why the individual is not working. It includes those taking care of a sick parent, those with limited childcare options, and those with addiction, homelessness, or other more extreme challenges. This category of poverty is usually not a problem of job availability but of circumstances preventing the individual from working.
- Can’t find work. This represents 7% of the poverty population of working-age adults not working and can be attributed to the job market in the location where the individual lives.
Opportunity and Poverty
What do the poor want – more welfare or more opportunity? Here is the answer.
How Long Are People In Poverty?
The Census Bureau’s most recent report on United States poverty dynamics was released in 2022 and is summarized in the chart below [ix]. It is a report on the makeup of the poverty population in the United States for three years, 2017 – 2019. It shows three categories of poverty: 1) those in poverty for the entire three-year period, 2) on an annual basis, or 3) monthly (less than one year).
The study reported that 3.3% of the United States population was in poverty for the entire three-year period, which represents about 30% of the poverty population. The Census Bureau describes this population as “chronic.”
Most people experience poverty annually for at least one year but less than three years. This population comprises students who ultimately leave poverty, nonworking adults who return to the workforce, and families whose children leave home and provide for themselves. Those coming into poverty can include seniors whose income is below the poverty threshold and adults (and their children) who experience loss of employment due to health or other issues.
The smallest category of the poverty population is in poverty monthly, which means they are in poverty for a minimum of one month but less than twelve months.
Only 2% of the population is in poverty with three attributes
“Young people can virtually assure that they and their families will avoid poverty if they follow three elementary rules for success – complete at least a high school education, work full time, and wait until age 21 and get married before having a baby. Based on an analysis of Census data, people who followed all three of these rules had only a 2 percent chance of being in poverty and a 72 percent chance of joining the middle class (defined as above $55,000 in 2010.” More.
Ron Haskins of the Brookings Institution, testifying before Congress on June 5, 2012
[i] U.S. Census Bureau. Poverty in the United States: 2023; Issued September 11, 2024. Available here.
[ii] ibid. As reported by the Census Bureau, “The sum of those with and without a disability does not equal the total [population] because disability status is not defined for individuals in the Armed Forces”. Table A-1.
[iii] Income and Poverty in the United States: 2020. Poverty Status POV-24. Reason For Not Working or Reason For Spending Time Out of the Labor Force–Poverty Status of People Who Did Not Work or Who Spent Time Out of the Labor Force. Available here.
[iv] The United States Census Bureau. Dynamics of Economic Well-Being: Poverty 2013-2016. August 2021. Table 2. Available here. Note – the Census Bureau has not issued a report converting more recent data as of January 2024.
[v] ibid. Calculated for Appendix Table 5
.
[vi] ibid. Table 2.
[vii] Unemployment rate: United States Department of Labor. Bureau of Labor Statistics. Unemployment Rate, 16 years and over. [Internet] Retrieved September 20, 2021. Available here. Poverty Rate: U.S. Census Bureau. For the poverty rate, see the U.S. Poverty Statistics Page.
[viii] Data from U.S. Bureau of Labor Statistics. Civilian Labor Force Participation Rate. [Internet]. Retrieved January 23, 2023. Available here.
[ix} United States Census Bureau. Survey of Income and Program Participation (SIPP). Poverty Dynamics: 2017 – 2019. September 2022. Internet. Retrieved November 11, 2024. Available here.