Economy

Poverty

Poverty

Poverty imposes far-reaching hardships, not only on the poor but also on all who share their communities. Virginia has a relatively low poverty rate -- it was ranked 12th in the nation in 2008 -- and continues to work to make education and opportunity available to its at-risk populations.

Why is This Important?

Poverty has a significant impact on individuals and society at large. Children who live in poverty are likely to suffer from poor nutrition during infancy, experience emotional distress, and have an increased risk for academic failure and teenage pregnancy. Adult men and women who live in poverty are at high risk of poor health and violence. Poverty can also affect seniors' ability to care for themselves or to obtain prescription medication.

How is Virginia Doing?

Virginia had the 12th lowest poverty rate in the nation in 2008. 10.2 percent of Virginians fell below the federal poverty level, which in 2008 was $10,991 for an individual. Among Virginia's peers, Maryland had the lowest poverty rate at 8.1 percent, while North Carolina and Tennessee both had higher rates of poverty at 14.6 and 15.5 percent respectively. New Hampshire ranked top in the nation with a poverty rate of 7.6 percent. The national average was 13.2 percent in 2008.

In 2008 the Southside region had the highest percentage (18.5%) of individuals living below the poverty level of any region in the state, followed by the Southwest (18.1%) and Eastern (15.0%) regions. At the other end of the scale, the Northern region (5.4%) had the lowest percentage of individuals living below the poverty level, followed by the Central (10.7%) and Hampton Roads (11.0%) regions.

What Influences Poverty?

As with personal income, the two largest factors affecting poverty are educational attainment and economic opportunity.  There is a strong and direct relationship between educational attainment and earnings and employability. The Bureau of Labor Statistics reports that in 2008 an adult (aged 25+) with a bachelor’s degree earned about 64 percent more than an adult with just a high school diploma and was only half as likely to be unemployed. However, a good education is not enough -- workers need the job opportunities created in a healthy economy to reach their full earning potential.

What is the State's Role?

Traditionally, the primary role of government in addressing poverty has been to provide a social safety net that mitigates its impact. Since the mid-1990s, however, welfare reform efforts at the state and federal levels have changed the focus of this effort to "welfare to work," where those in need are provided temporary assistance and access to resources that will enable them to become self-supporting. This is accomplished through programs like Temporary Assistance for Needy Families (TANF), food stamps, Medicaid and various workforce initiatives.

In addition to these practical efforts, the state can reduce long-term poverty rates by enhancing general education and providing a good climate for business and employment growth -- two of the key factors that affect long-term poverty rates.