The Economy

Sour economy forces thousands more into poverty

The poverty rate in Hawaii is now at its highest level since 1997, according to Census Bureau figures released in September. The state’s poverty rate rose to 12.5 percent in 2009 – with more than 156,000 people living below the poverty line – the third consecutive year the state saw growing numbers of impoverished people.

In 2007, 7.5 percent of the state's population was below the poverty line. In 2008, the number rose to
9.9 percent -- or 125,000 people. The new census estimates show the poverty rate among Hawaii children jumped nearly 5 percentage points last year -- to 19 percent -- up from 14.3 percent. Nationally, the overall poverty rate also climbed last year – to 14.3 percent, 43.6 million people, or one in  seven Americans.

The figures, advocates say, illustrate just how much island low-income families are struggling in an economic downturn that has left thousands without jobs and many struggling to pay for necessities.  In 2009, a person earning $12,460 or less a year was considered to be under the poverty line in Hawaii. For a family of four, the line was set at $25,360 a year. Advocates locally say they're bracing for another increase this year, based on the need social service agencies continue to see.

For example, Salvation Army Hawaii has reported big increases in the number of people seeking food assistance and other types of help. In February, its food pantry helped 237 families. Last month, it helped 354.

In Hawaii, the new figures also showed:

  • 17 percent of people earned less than 125 percent of the poverty level, from 14 percent
  • 9.3 percent of residents 65 and older lived below the poverty line, up from 8.3 percent in 2008
  • Nearly 30 percent of households headed by a single woman were in poverty, up from 27.2 percent
  • About 11 percent of working-age residents (from 18 to 64) lived in poverty, up from 8.8 percent

Alex Santiago, executive director of PHOCUSED, a consortium of social service agencies, called the new figures alarming. "It's just indicative of the challenges that everyone is facing right now," he said. "Needs continue to increase. We haven't done an adequate job of shoring up the safety net."