The U.S. poverty rate dropped and the median U.S. household income rose significantly for the first time since 2007, before the Great Recession, according to the U.S. Census Bureau’s annual Income and Poverty Report.
The Census Bureau reported that 43.1 million Americans were living in poverty in 2015, which is 3.5 million less than in 2014. The number of Americans living in poverty comes out at about 13.5 percent of the population, which is 1.2 percentage points lower than in 2014.
The median household income in the United States was $56,516 in 2015, which is an increase of 5.2 percent from the 2014 median of $53,718. The Census Bureau reported that it was the first such annual increase since 2007 — the year before the Great Recession. While the increase is positive news, the median household income is still 1.6 percent lower than in 2007, and 2.4 percent lower than its peak in 1999.
The real median earnings of men and women who worked full time, year round between 2014 and 2015 increased by 1.5 percent and 2.7 percent, respectively, which is the first significant annual increase in median earnings for men or women since 2009. The report also revealed that the number of men and women working full time, year round with earnings increased by 1.4 million and 1 million, respectively, between 2014 and 2015.
The report revealed specific changes in the poverty rates for specific age groups. The poverty rate decreased for all three major groups. The poverty rate for children under age 18 dropped from 21.1 percent to 19.7 percent, which is a 1.4 percent drop. The rate for people aged 18-64 dropped 1.1 percentage points, from 13.5 percent to 12.4 percent. The poverty rates for people aged 65 and older also decreased, falling 1.1 percentage points, from 10.0 percent to 8.8 percent.
Economic experts and analysts have warned against using the poverty rate to assess long-term trends because it does not account for non-cash benefits, which includes tax credits (refundable) and food stamps.
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