FACES OF POVERTY: THE WORKING POOR

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• FACES OF POVERTY THE WORKING POOR

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Agenda

• Define working poor
• Overview of the WDC
• Profile of the working poor in Racine
• Work readiness challenges of the working poor
• Case scenarios
• Economic impact of poverty in Racine

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Working poor? What does that mean?

• The Poverty Line a household Income of 17,600 a
  year in 2008.
• In 2008, 37.3 million Americans lived in poverty.
• 5.3 million were among the working poor those
  who spent 27 weeks or more in the labor force,
  working full-time.
• 16.4 million Americans who work part-time live at
  or below the poverty line.
• 5.8 of women who work are considered working
  poor while only 4.5 of all men who work are
  among the working poor.
• Younger workers are more likely to be among the
  working poor than their older counterparts, due
  to lower average earnings and higher rates of
  unemployment.
• More than 5 of the workforce works two jobs to
  make ends meet, but still live in poverty.
• Sources U.S. Census Bureau, U.S. Bureau of
  Labor Statistics

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Faces of poverty

• 70 of the working poor are White.
• Black and Hispanic workers continue to be twice
  as likely as their White counterparts to be poor.
• More than 1 in 10 people say they struggle to
  feed themselves.
• Some jobs that pay poverty wage home health
  aide, child care provider, pre-school teacher,
  janitor, and delivery person.
• Sources U.S. Census Bureau, U.S. Bureau of Labor
  Statistics, YouTube (video)

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Poverty in the 21st Century Making Ends Meet

• Voices from the Center for American Progress
  Poverty
• Task Force

Source YouTube Video
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The Racine County Workforce Development Center

• Division of Racine County Human Services
  Department
• WDC budget is 10 million
• Governed by the Racine County Workforce
  Development Board
• Talent development services
• Employs 100 staff
• Partnership organization
• Two sets of customers job seekers and employers

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WDC (contd)Universal Services

• Resource Room/Career Development Center
• Workshop Instruction
• Career Discovery Center
• Academic Improvement Center
• Business Services

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WDC (contd)Work-Related Intensive Services

• Dislocated Worker/Adult (WIA)
• Seniors
• Veterans
• Children First Program
• Food Stamp Program
• W2
• Medical Assistance

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WDC (contd)Average Program Profiles

• Food Stamps
• 35 yr. old Black male, HS/GED, temporary
  employment history with annual wages of 10,000.
• Child Care Assistance
• 20-30 yr. old female with 1 or more
  children with annual wages of 16,000
• W2 (cash payments)
• 25-29 yr. old female, 2 to 3 children,
  HS/GED, employed in retail or health care (CNA)
  with annual wages of 18,000
• Children First Program
• 27 yr. old Black male, w/o HS/GED, temporary
  employment history, with annual wages of 12,000
• Re-training
• Male with average annual wages of 5,000

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Profile of the working poor

• December 07
• Gender
• 37 Male
• 63 Female
• Employment Status
• 81 Unemployed
• Race
• 38 White
• 44 Black
• Age
• 78 23-54 yrs. old

• December 08
• Gender
• 49 Male
• 51 Female
• Employment Status
• 80 Unemployed
• Race
• 45 White
• 45 Black
• Age
• 79 23-54 yrs. old
• Source WDC Quarterly Surveys

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Profile of the working poor

• December 2008
• Educational Level
• 20 ltHS/GED
• 47 gtHS/GED
• Income
• 54 lt 10,000
• 25 gt10,000 - 20,000
• Seeking Employment
• 71 - part-time, operator, assembly,
  skilled trades and service industry
• 51 - drivers license
• Source WDC Quarterly Report

• December 2007
• Educational Level
• 23 lt HS/GED
• 35 gtHS/GED
• Income
• 64 lt 10,00
• 20 gt10,000 - 20,000
• Seeking Employment
• 54 - part-time, operator,
• assembly, skilled
• trades and service industry
• 58 - drivers license

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Poverty on a budget

• Poverty USA Video

Source YouTube Video
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Work Readiness Challenges of the Working Poor

• Financial Money to purchase goods and services.
• Emotional resources Ability to choose and
  control emotional responses, particularly to
  negative situations.
• Mental resources Mental abilities and acquired
  skills (reading, writing and computing) to deal
  with daily life.
• Support systems Having friends, family and
  backup resources available in times of need.
• Role models Having access to adults who are
  appropriate and who do not engage in
  self-destructive behavior.
• Knowledge of hidden rules Knowing the unspoken
  cues and habits of a group.
• Coping strategies Ability to translate from
  personal to the issue.
• Source Bridges out of Poverty, Payne, DeVol,
  Dreussi Smith

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Scenario 1

• Sue recently graduated with an LPN credential.
  Shes obtained a job in Kenosha 15 miles from her
  home in Racine. While attending school she lived
  with her mother who cared for her children, but
  she has moved in with her boyfriend who is also
  the father of two of her four children. She
  depends on her boyfriend for transportation to
  and from work and he picks her children up from
  school. Sue and her mom are not talking since
  her boyfriend insulted her mom. Sue has used all
  her sick days and has been late for work several
  times.

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Scenario 1 (contd)

• Sue gets a collect call at work from her
  boyfriend. Hes unable to pick her kids up from
  school. Jane leaves work to pick-up her kids and
  returns the next day to find she has been
  terminated.
• What work readiness challenges does Sue face?

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Scenario 2

• John is a 25-year-old high school drop-out who
  has been accepted into a 14-week, 5-day a week,
  8-hour-a-day training program. Upon completion
  of the program, he will have a 95 chance of
  obtaining employment with a salary of 13.50/hr.
  The only caveats are he must attend every day,
  must be on time and must complete the program
  with a passing grade.

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Scenario 2 (contd)

• On week ten of the program, John doesnt show
  up. His mother calls at 100 p.m. to report he
  was placed in custody over the weekend for
  failure to pay child support. Further, he will
  not be released until he pays arrears of 5,000.
  
• What work readiness challenges does John face?

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Scenario 3

• Mary is a 26 year old woman with three children.
  She is on probation for assaulting her
  ex-boyfriends new girlfriend and her 10-year-old
  son is on supervision for hitting his teacher.
  Mary has been on and off public assistance since
  her first child was born. Shes currently
  receiving food stamps, child care assistance, and
  medical assistance.
• Mary has the following obligations and she
  doesnt have a valid drivers license or a
  vehicle
• 1) She must comply with an employability
  plan that includes spending 32 hours a week
• searching for employment.
• 2) She must attend monthly meetings with her
  probation agent and must pay 100 a month
• towards 3,000 in court-ordered
  restitution.
• 3) She must attend monthly appointments with her
  10-year-old sons social worker.
• 4) She must attend weekly anger
  management counseling and family counseling
  sessions.
• What work readiness and life challenges does
  Mary face?

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Scenario 4

• Larry was a participant in CNC Boot Camp 2.
  Prior to Boot Camp, he had been imprisoned for
  three years. While incarcerated, he earned his
  HSED, passed food service certification
  coursework and earned a welding certificate.
  After his release, he held a temporary assignment
  for six months earning 5.75 per hour. He was
  concerned that his criminal background, work
  history, and lack of education would prevent him
  from carving out a stable future. In his own
  words, he wanted to achieve a better life for my
  family as well as myself. He also wanted to
  reach my goals of being a better man and a
  positive role model in the community. He was
  receiving FoodStamps.

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Scenario 4 (contd)

• Larry successfully completed our CNC Boot Camp
  in early August 2005 and accepted an offer to
  work at Pioneer Products through a temporary
  agency earning 10.00/hr. The following he was
  hired permanently and has worked continuously
  since with the same employer. Until the recent
  economic downturn, he was able to schedule
  regular overtime. He now earns 11.50/hr and is
  able to provide for his family and afford some of
  the extras that had always been out of reach. He
  is not only one of our success stories, but the
  company hiring him likes to quote his story as
  one of their successes also. They recognized his
  potential, invested in his on- the-job training,
  and are pleased with his work. He meets or
  exceeds standards for both quality and production
  numbers. So far, he has not been affected by the
  layoffs.

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Racine Poverty Data

• Those without a high school diploma
• 12.6 of total population
• 25.1 of those living below the poverty level
• Women
• 51.4 of total population
• 58.5 of those living below the poverty level

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Weekly earnings of full-time workers 25 or older
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Average Annual Salary

• Average annual salary (2005 wages)
• Less than high school 21,268
• High school 30,316
• Difference 9,048
• Lifetime difference
• 362,000

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Graduation rates and reduced lunch rates

• RUSD between 2001 2007
• Graduation Rate 71 to 79 percent
• Eligible for free or reduced lunch 60 to 68
  percent
• Wisconsin Public School Average 2001 2007
• Graduation rate 89 to 92 percent
• Eligible for free or reduced lunch 24 to 31
  percent
• Inverse relationship between low graduation and
  eligibility for free or reduced lunch

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Contract information

• Contact Information
• Alice Y. Oliver
• 1717 Taylor Avenue
• Racine, WI
• [phone]
• Alice.Oliver_at_goracine.org