Economy

Poverty

Poverty

Poverty imposes far-reaching hardships, not only on the poor but also on all who share their communities. Virginia has one of the lowest poverty rates in the nation -- it was ranked 10th in the nation in 2007 -- 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?

In 2007, Virginia had the 10th lowest poverty rate in the nation. During 2007, 9.9 percent of Virginians fell below the federal poverty level, which was $10,590 for an individual. Among Virginia's peers in 2007, Maryland had the lowest rate of 8.3 percent, while North Carolina and Tennessee both had higher rates of poverty at 14.3 and 15.9 percent respectively. New Hampshire ranked top in the nation with a poverty rate at 7.1 percent.  The national average was 13.0 percent in 2007.

In 2007 the Southwest region had the highest percentage of individuals living below the poverty level (17.6%) of any region in the state, followed by the Southside (17.4%) and Eastern (13.7%) regions. At the other end of the scale, the Northern region (5.3%) had the lowest percentage of individuals living below the poverty level, followed by the Central (10.5%) and Hampton Roads (10.8%) regions.

What Influences Poverty?

As with personal income, the two largest factors affecting poverty are educational attainment and economic opportunity.

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.