PRESS RELEASES

Release Date: October 21, 2004

CONTACT:
Lenore Neier, Community Service Society, 212-614-5425
Lacey Siegel, Community Service Society, 212-614-5495

Low-Income New Yorkers Left Out of Economic Recovery

Survey Finds Broad Support for Measures to Relieve Hardships of Working Poor

New York, NY, October 21, 2004 – For the third consecutive year, jobs and the economy are viewed as the top problems facing the city by a wide margin. Signs of economic recovery especially lag for low-income groups: nine out of 10 say their family finances have not improved over last year; 36% say they are even worse off. Higher income New Yorkers feel only marginally better: eight out of 10 report no economic improvement for their families over last year; 21% say they are worse off.

Despite holding full-time jobs, many low-wage workers are experiencing staggering hardships. Among the working poor, nearly 40% of families with a full-time jobholder suffered three or more serious hardships.

These are among the findings of The Unheard Third: Bringing the Voices of Low-Income New Yorkers to the Policy Debate, released today by the Community Service Society (CSS) with its strategic partner, United Way of New York City. The Washington-based firm of Lake Snell Perry & Associates conducted interviews with 1,000 low-income New York City residents and a comparison sample of 300 moderate and higher income New Yorkers.

"CSS research affirms our development of human service programs to aid the working poor, like food stamp outreach and homelessness prevention," said Lawrence Mandell, president and CEO of United Way of New York City. "This kind of information helps ensure that we properly design programs that address the needs that the poor themselves have articulated."

Hardships

Among low-wage workers holding full-time jobs, the survey found that in the past year:

• 32% had their gas, electricity or phone turned off because of unpaid bills
• 33% fell behind in the rent
• 31% were unable to fill needed prescriptions
• 36% were forced to rely on food pantries or food banks
• 23% postponed or were unable to get medical care

The findings, however, suggest that a relatively modest increase in earnings or benefits can substantially reduce hardships. Nearly half (45%) of New York City's poorest residents living below the federal poverty guidelines ($15,670 for a family of three) suffered three or more serious hardships last year. In contrast, less than half that proportion (21%) of the city's near poor (with incomes above $15,670 but below $31,340 for a family of three) experienced the same level of multiple hardships.

"Though about two-thirds of the poor we interviewed are in working families, a low-wage job is not enough to meet basic needs," said the survey's lead researcher, Nancy Rankin, director of policy research at CSS. "A small boost in income can have a dramatic impact in alleviating hardships. That's why actions like increasing the minimum wage, funding for more Section 8 rent subsidies and expanding the EITC are so important."

Employee Benefits

The survey showed that 58% of poor full-time workers did not have employee health insurance for their families and that 40% failed to get coverage for themselves. In addition, 66% of poor full-time workers did not receive a prescription drug plan. In contrast, only 15% of moderate to higher-income respondents said their employers did not provide health benefits. Moreover, 61% of poor, full-time workers surveyed reported they did not have even a single day of paid sick leave.

Over half the respondents living below the poverty level report they have less than $500 to fall back on in an emergency and one out of three have less than $100. "For those without any savings, losing a few days' pay to stay home with a sick child or serious illness can mean not being able to meet the rent or put food on the table," said Rankin

Consensus in Helping People Get Ahead

There is broad and strong support across income groups on how to help low-income New Yorkers get ahead, including:

• Increasing the minimum wage (94% agree
• Investing more in schools even if it means raising taxes (74%)
• Rolling back some of the tax cuts to reduce the federal deficit rather than cutting health, education, housing and social programs (76%)
• Requiring employers to provide paid sick leave (71%)

"These are the ingredients of an urban agenda, that's been missing from the public debate," stated David Jones, President of CSS. "We're hopeful that this data will spur action to address the needs of the working poor. We need to raise the floor of wages and benefits, provide a good education for all New York City children, invest in more affordable housing, and provide education, training and jobs programs to connect high risk groups to good jobs."

How the Survey Was Conducted

Telephone interviews were conducted using random digit dialing between July 14 and August 1, 2004, with a total of 1,300 New York City residents age 18 or older, including 1,000 lower-income residents and 300 higher-income residents. The margin of error for the low-income component is +/-3.1 percentage points; for the higher-income component +/- 5.7 percentage points; and +/- 4.3 percentage points for the combined sample.

Top-line findings and a more detailed report (PDF) can be found on the Community Service Society website at www.cssny.org or United Way's web site at www.unitedwaynyc.org. Support for the report was provided by the United Way of New York City, the Rockefeller Foundation and the New York Community Trust.

Community Service Society, an independent, nonprofit organization, provides solutions to help New Yorkers in need deal with the problems of poverty and strengthen community life for all. Through a combination of service initiatives, policy analysis, and advocacy we bring about systemic change that empowers those in need to advocate for themselves.

United Way of New York City helps low-income New Yorkers become and remain self-sufficient. We identify best practices in the field of social services, and take them to scale where they are needed most. By working with government, other nonprofits, foundations and individuals, we work to prevent homelessness, help New Yorkers gain access to healthcare and build economic independence; improve education and early childhood development programs, and strengthen nonprofits. We are governed by volunteers and independently operated. For more information on United Way of New York City, please visit www.unitedwaynyc.org.

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