A new study shows that more than a third of American households who work full-time do not have enough money to cover their most basic needs, including housing, food and childcare.
Researchers at Brandeis University found that 35% of American households, despite working full-time throughout the year, do not meet their “basic family needs budget” – the amount needed to cover rent, food, transportation, medical care and minimum household expenses.
And the economic situation is even more dire for working black and Hispanic families, more than 50% of whom can’t afford the basics.
For comparison, a quarter of white households and 23% of Asian and Pacific Islander households are struggling to make rent and buy food despite full-time jobs.
According to the survey, low-income families with children are performing particularly poorly, with more than two-thirds of full-time workers failing to earn enough.
According to research, most of these families will need to earn about $11 per hour, or about $23,500 in additional annual income, to fully cover basic expenses.
Meanwhile, black and Hispanic families would need to earn more than $12 per hour – an additional $26,500 per year – just to meet a family budget.
“These results are a wake-up call for decision makers to prioritize policies that address income inequality and racial and ethnic equity and expand real opportunities for economic self-sufficiency.” said Dr. Pamela Joshi, senior research scientist and lead study author.
The study, which is based on 98,000 households, also found that more than half of low-income Hispanic households do not have health insurance, and more than three-quarters do not have a pension.
Study co-author Dr. Dolores Acevedo said, “When families can’t meet their basic needs, it puts a strain on parents’ health, and increases the likelihood that children have access to resources and opportunities.” There will be shortages that promote their well-being.” -Garcia.
The study provides policymakers with a number of recommendations to improve the economic outlook for low-income households, including creating more jobs that provide a living wage, expanding income support, and providing paid Family and medical leave.
The survey results are based on data from 2015-2019, before the outbreak of the coronavirus pandemic, which wreaked havoc on the job market, and before recent spikes in inflation, gasoline and food prices.