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September 20, 2012

Poverty, Earnings and Income in San Diego County 2011 Analysis of regional data from the US Census Bureau 2011  American Community Survey

Earnings drop as wages lag behind costs in San Diego region Working families in San Diego County lost ground in 2011, as the quality of jobs created  by major industries in the region failed to keep pace with the cost of living. Middle‐ income earnings shrank and more people fell into poverty. Black and Latino families and  women continued to bear the brunt of income inequality.

Key findings: Full‐time, year‐round employees in most of the region's biggest industries were earning  less or about the same as five years earlier, adjusting for inflation.  On average, all households lost $2,337 in purchasing power from 2010 to 2011, when the  midpoint of household income throughout the County dropped to $59,477.  The poverty rate rose to 15.1% of San Diego County's population, from 14.8% in 2010.  Of the 462,269 people living below the federal poverty level in 2011, 137,084 were  children. Among adults living in outright poverty, 34% – 117,408 people – were employed. 

• • •

Earnings by Industry The tourism industry had the lowest median earnings in 2011, $24,422 for a year of full‐ time work. Health care and social assistance grew to the largest local industry, with  stagnant wages. Real earnings in 10 of the 15 largest industries were lower than in 2007. Earnings for full‐time, year‐round work in San Diego County, in order of median earnings Change in Median Change in employees Earnings earnings 2011 2007-2011 employees 2007-2011 2011 15 Largest Industries in San Diego County Accommodation & food services 1.3% 0.2% $24,422 53,867 Administrative, support & waste management services -4.9% -3.6% $31,414 38,560 Other services (except public administration) -3.2% 6.2% $32,136 40,736 Retail Trade -7.9% 2.0% $34,470 88,789 Real estate & rental and leasing -24.8% -0.8% $39,671 25,312 Health care & social assistance 0.5% 28.4% $45,607 115,719 Wholesale Trade -11.1% -18.0% $45,661 26,017 Transportation & warehousing -3.3% -5.3% $46,528 26,907 Construction -4.7% -39.1% $46,635 44,265 Finance & Insurance -9.3% 3.7% $52,068 44,618 Educational Services 4.4% 40.3% $52,143 68,830 Manufacturing 3.4% 6.4% $57,119 106,457 Public administration 5.7% 20.5% $61,345 79,022 Information -7.2% -25.0% $64,957 22,393 Professional, scientific, and technical services -9.4% 2.7% $67,267 98,520

Data includes all occupations within the industries. 1

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Living in Poverty and Economic Hardship The hard facts on poverty: • The San Diego County population living below the federal poverty level has increased by  nearly 142,000 people since 2007.   • Nearly 1 in 5 children in the County lived in poverty in 2011.  • In 2011, the federal poverty level (FPL) was $11,484 for a single person and $22,811 for a  family of four with two children. The level differs for all family sizes. A yearly income of $23,000 does not go far for a family of four. A more realistic measure of  the income needed for basic sustenance is double that amount (200% of FPL). More than a  third of San Diego County's population lived below that level of economic hardship in 2011.

Poverty and economic  hardship in San Diego  County have been  increasing the last five  years. 

Poverty and Economic Hardship in San Diego County Key Indicators

2011

2010

2007

Number

% of total

Number

% of total

Number

% of total

County residents living below the  federal poverty level (100% FPL)

462,269

15.1%

446,060

14.8%

320,378

11.1%

Children living below the federal  poverty level (100% FPL)

137,084

19.1%

137,287

19.2%

110,124

15.1%

1,039,957

34.0%

1,006,047

34.0%

787,991

27.4%

County residents in economic  hardship  (200% FPL)

2

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Income Inequality: The Middle Is Being Squeezed The hard facts on income inequality: • The middle class continues to shrink in San Diego County as median incomes decrease.  • The top‐earning fifth of households received 49.2% of all income in the region, while the  bottom fifth of households received only 3.1%.  • Of individuals working full‐time year‐round, 20.4 % or 202,412 earned less than $25,000. • The gender wage gap persisted in 2011. For full‐time, year‐round work, median earnings  were $49,788 for men and $41,551 for women.   The Gini index* of income  inequality in San Diego County  increased to 46.1% from 45.8%  last year.  *The Gini index is an economic measure of  income inequality. An index of 0 indicates  perfect equality and 1 indicates perfect  inequality (i.e. one person has all the  income and the rest have none). The US   Gini for 2011 was 47.5. 

In 2011, a fifth of  households (224,108)  earned less than $25,000. Median household  income – the combined  earnings of all people in a  household – fell to  $59,477 in 2011 from  $61,814 in 2010, adjusted  for inflation.   2010          

Income & Earnings Median Household Income Median Household Income‐Black Median Household Income‐Latino Median Household Income‐Asian Median Houshold Income‐White Median Individual Earnings

3

2011

(Infl. Adjst.)

$  59,477 $  45,489 $  42,533 $  72,387 $  60,416 $  31,547

$         61,814 $         48,159 $         46,207 $         78,260 $         62,347 $         32,344

Household income  decreased for all races  and ethnicities, when  adjusted for inflation.  Blacks and Latinos had  the lowest median  household incomes. 

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Poverty and Health in San Diego County in 2011 The hard facts on poverty and health: • Blacks and Latinos are more likely to live in poverty than Whites or Asians.  • Children continue to be disproportionately impoverished, and over 77,000 families were  living below the federal poverty line in 2011.   Health Insurance Breakdown • 528,808 people (17.4% of the population) lived without health insurance. • 463,626 working‐age adults lived without health insurance. • 136,249 people who worked full‐time, year round did not have health insurance in 2011

19.6% of children are in poverty

16% of women are in poverty *This data does not reflect the diversity of Asian populations surveyed.

Total Poverty and Child Poverty by City

14.2% of men are in poverty

9% of seniors (65+) are in poverty

11% of families are in poverty

22.6% Methodology: Each year the US Census Bureau releases data from the American Community Survey (ACS). This data is available for geographic areas with populations of 65,000 or more and provides demographic, economic and social data for individuals and households. This report analyzes the 2011 data, released on September 20, 2012.

4

Printed in‐house

of single parent  families are in  poverty

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CPI Poverty, Earnings and Income Report 2011