The Pit of Poverty is Getting Deeper

A February 2010 report from Boston's Northeastern University highlights a new and growing divide between poor and rich US households. The Center for Labor Market Studies tracks ten household income categories on an ongoing basis. It has identified an alarming reality that is pulling poor families into deeper distress than has been the case in recent years. The lowest tenth, with annual household income of $12,499 or less for annual income, had a fourth quarter 2009 unemployment rate of 30.8%. The next lowest income group had an unemployment rate of 19.1%. Higher income households are not experiencing the predicaments of unemployment at similar levels. The top two groups, with annual incomes in excess of $100,000 had an average unemployment rate of 3.6%.

Observations such as those being advanced by the Northeastern University Center are driving the nation in a frenzied effort to create jobs, jobs and more jobs. It is going to be critical that attention be given to subsidizing jobs likely to provide opportunities for residents of low income households and that new types of industries begin to be seen as being as critical as costly technology development drives. The US must begin to focus on High Tech job and business innovation if it is to provide work for populations seeking it in our cities and rural communities.