1. A significant percentage of individuals and families in Phoenix live in poverty.

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1 2008 Labor Day Census Data Release Poverty and Income in Phoenix MSA * Analysis of Regional Data from the US Census Bureau 2007 American Community Survey Summary Summary 1. A significant percentage of individuals and families in Phoenix live in poverty. 1. A significant percentage of individuals and families in Phoenix live in poverty. 536,649 (13%) of individual residents live below the federal poverty threshold, an increase of 504,135 32,514 from (12.7%) of individual residents live below the federal poverty threshold. This is an increase of Almost 0.00 percentage one third (28.6%) points from of Phoenix 12% in MSA residents do not have enough income to meet their basic needs and may qualify for government anti-poverty programs. These 811,830 residents Almost live below one third 200% (31.5%) of the federal of Phoenix poverty MSA line. residents do not have enough income to meet their basic needs and may qualify for government anti-poverty programs. Summary of Census Data These 1.25 million residents live below 200% of the federal poverty line. Indicator Number Percentage People living below the poverty line 536,649 13% People living at twice the poverty line 811, % Families living in poverty 91, % families Children living living in in poverty (73%) has at least one worker in 200,807 the household 18% Median Household Income $54,250 N/A 45.2% of adults living under the federal poverty threshold work full or part-time 2. A large percentage of individuals and families in poverty work full or part time Workers in the Phoenix MSA More Workers than in Phoenix half of families living in poverty have at least one 1,336,082 worker in the household. Almost half (44%) of adults living under the federal poverty threshold work full or part time Workers living at or below the poverty line 61,473 Workers who qualify for government assistance Workers in the Phoenix MSA Workers in Phoenix 1,324,151 Workers living at or below the poverty line 153, Gender and racial disparities exacerbate the income inequality in Phoenix In addition to rising income inequality in Phoenix, earnings of Black and Hispanic households were dramatically lower than White households Women earned an average $6,545 less than men across all industries, with an income gap of 16% 4. Job growth in low wage industries contributes to poverty and near poverty in Phoenix; a strong trend towards dramatic inequality threatens healthy economic growth The largest industries in the Phoenix area such as food service, administrative support, and trade contractors, provide mostly low-skilled and low-paying jobs. The cost of living in Phoenix has increased, and has had a disproportionate effect on middle and low income workers Economic growth in 2007 has contributed to a teardrop economy, with the top fifth of all households claiming almost half (48%) of the wealth. * Metropolitan Statistical Areas have at least one urbanized area of 50,000 or more population, plus adjacent territory that has a high degree of social and economic integration with the core as measured by commuting ties.

2 The Data The following data comes from the 2007 American Community Survey (ACS) which was released on August 26, 2008 by the US Census Bureau. ACS provides demographic, economic, and social data for individuals and households. The data is made available for geographic areas with populations of 65,000 or more. Findings 1. A significant percentage of individuals and families in the region continue to live in poverty. In 2007, a total of 536,649 individuals (13%) lived in poverty according to Federal poverty measures. The federal poverty level (FPL) is set nationally according to family size (in 2007: $10,787 for a single adult under 65 years and $21,027 for a family of four with two children). The official measure significantly undercounts the region's poor. A more accurate measure based on recommendations of the National Academy of Sciences would reveal that thousands more persons face material deprivation. A more realistic measure of economic disadvantage is twice the number of the Federal poverty threshold. A total of 811,830 individuals (29%) in the region are economically disadvantaged by this measure, and qualify for government anti-poverty programs. Over 158,339 households, including nearly 91,697 families in the Phoenix area, live in poverty-- 7,536 more than last year. There are over 200,807 children in poverty, almost one fifth (18%) of Phoenix s children. 12 Phoenix MSA Families in Poverty Married Couples with children under 18 years 26, % Married Couples without children 11, % Single Fathers with children under 18 years 8, % Single Mothers with children under 18 years 39, % Single adults without children 6, % Total Families in Living in Poverty 91, % Working Families in Poverty 52, % 2. Many people are very poor even though they are working. The majority of Phoenix families living in extreme poverty (57%) include at least one adult who has worked part or full time during the year. Forty-four percent of the adults living in poverty (below the federal poverty line) told surveyors that they had worked either full or part time during the past 12 months. In 2006, of the 61,630 Phoenix families receiving food stamps, 33% had two workers employed during the year, and 81.3% had at least one adult worker 2 1 Households are defined by Census Bureau as a group of two or more people who reside together and who are related by birth, marriage, or adoption Families are defined by Census Bureau as including single adults and people living together that are not related by marriage, birth or adoption 2 The data is not yet available for 2008

3 3. Racial and gender disparities in income and poverty loom large over Phoenix In addition to working poverty, a wide racial disparity in income and poverty exists in Phoenix. White households have a median income of $60,570 while Hispanic and Black households earned $41,544 and $37,008 respectively. The median income for Hispanic households in Phoenix was only 68.6% of the median income for White households, and African Americans only make 61% While incomes for White and Hispanic families rose in 2007, incomes for Black families dropped more than $4,000, from $41,250 to $37,008. For full-time year-round work, males earned $42,008 a year, whereas females earned $35,463. Thus the overall gender gap in wages across all industries is 16%. For example, in retail trade, the largest industry in Phoenix, the median earning for male employees was $39,023, almost $10,000 more than female employees. Median= $54, Growth in low-wage jobs and industries contributes to unequal economic gains. Economic growth in 2007 has contributed to a teardrop economy, with the top fifth of all households claiming 48% of the wealth. Over the past decade, economic growth has generated thousands of new jobs for Phoenix s market. Jobs grew by 15% between 2000 and 2006, or from 1,596,360 to 1,836, However, many of these jobs have been in low-wage, low-quality industries. The largest industries in Phoenix today are retail trade (14%), administrative support (11%), and construction (10%), health care (10%) and accommodation and food services (9%) 4 3 Calculated from data provided by the US Department of Labor, Bureau of Labor Statistics, Department of Labor from the Occupational Employment Statistics (OES) Survey

4 Top 5 Industries Average Employment (2006Q4-2007Q3) Average Annual Earnings (2006Q4-2007Q3) % of Economy All Industries 1,645, Retail Trade 236, Administrative and Support and Waste Management and Remediation Services 187, $ 46,440 $ 33,204 14% $ 33,792 11% Construction 167, $ 49,428 10% Health Care and Social Assistance 161, $ 47,016 10% Accommodation and Food Services 152, $ 20,460 9% Source: U.S. DEPARTMENT OF LABOR, Bureau of Labor Statistics by the Arizona Department of Commerce, Research Administration Not only are the most plentiful job opportunities available in low-wage industries, but Phoenix s new growth is skewed towards low-wage jobs. In 2006, low-wage jobs represented 21% of jobs overall in the Phoenix metropolitan area. Phoenix has followed the same trend as the state: Motorola was the largest private employer in the state in 1996; today it is Walmart. Of the 240,510 new jobs that were created between 2000 and 2006, 103,940 (44%) were concentrated in the ten following positions: Median Wages Numbers of Employees % Change in Median Wages % Change in Job Growth Retail salespersons $8.48 $ ,930 58,130 23% 35% Customer service reps $10.56 $ ,190 53,880 28% 73% Cashiers $7.58 $ ,770 45,120 16% 34% Office clerks $9.35 $ ,700 44,510 28% 55% Laborers and freight /stock movers $9.38 $ ,170 38,240 10% 23% Combined food prep, fast food $6.24 $ ,180 35,300 23% 6% Waiters and waitresses $6.28 $ ,740 33,210 22% 29% Carpenters $15.51 $ ,150 28,230 3% 65% Janitors $7.15 $ , % 27% Sales reps, wholesale and manufacturing $17.47 $ ,920 22,490 23% 33% TOTAL WEIGHTED MEAN HOURLY WAGE $9.10 $ % TOTAL EMPLOYEES IN THESE JOBS 281, ,030 37% Source: U.S. DEPARTMENT OF LABOR, Bureau of Labor Statistics by the Arizona Department of Commerce, Research Administration A key characteristic of Phoenix s teardrop economy is a drastically rising inequality. The largest job pools in Phoenix are clearly not family-supporting jobs. Median household income in 2007 was $54,250 and per capita income was $26,303. Yet 45.8% have an annual household income less than $50,000. The chart shows the distribution in household income up to $150,000 for which data in comparable increments is available. Only 8.0% of households have income greater than $150,000.

5 Low wage jobs have helped fuel the rising inequality in Phoenix. The top fifth of all households with the highest income claimed 48% of all income in the region, while the bottom fifth of households got 4% sliver of the pie. Conclusion and Recommendations The large number of poor and low-income jobs in the Phoenix metropolitan area represents a pressing challenge to improving the quality of our local economy. Poverty and low wages impact every aspect of our community, from the business climate and the healthcare system, to our neighborhoods and schools. People should be able to support their families with one job, rather than working multiple ones that keep them from their families and neighborhoods. Better-quality jobs mean that employers in the region stop shifting the burden of care onto the public. All stakeholders must play a role in addressing the failures in the economy. Business leaders must invest in their workforce and support policies that expand opportunity such as family- supporting jobs with benefits. Labor unions can improve standards through organizing workers, a proven strategy for raising the wages of low-wage workers. Policymakers should continue to make investment in education and job training programs a top priority, as a better-educated workforce will be able to access good jobs that are created by our economy. Policymakers must also pursue strategies to raise wages in growing low-wage industries and occupations. The Data analyzed in this summary are from the American Community Survey Annual release of economic, poverty, and employment data on August Comparisons to data are from the American Community Survey, and comparisons to 2000 are mainly from SF-3 of the decennial Census Central Arizonans for a Sustainable Economy raises standards and improves conditions for working families in Phoenix. Website: Contact: Rachel Sulkes, Executive Director, , rsulkes@centralarizonans.org Corinne Widmer, Research Associate, , cwidmer@centralarizonans.org Joe Larios, Community Organizer, (602) , jlarios@centralarizonans.org