Life in the Valley Economy 2010 - Working Partnerships USA

Making a Living: Indicator 3: Achieving Self-Sufficiency
Poverty rate of 7.6% does not accurately reflect
the number of people in financial hardship
By official measures, Santa Clara County appears to
enjoy a low poverty rate, with only 7.6% of all residents
and 9.4% of children below poverty as of 2008.
However, the current Federal Poverty Level (FPL)
formula, created almost half a century ago, grossly
underestimates poverty in our region today. First,
the FPL is based exclusively on the cost of food, even
though the cost of other necessities like housing,
transportation, health care and child care have risen
much faster than food. Second, the FPL makes no
adjustments for regional differences in cost of living.
As a result, high-cost regions like Santa Clara
County are plagued by hidden poverty – residents
falling below self-sufficiency and suffering hardships,
yet not regarded as officially “poor” and therefore not
eligible for many types of social assistance.
Percent of population below
federal poverty level
Poverty In Santa Clara County, 2000-2008
12%
10%
8%
6%
4%
All ages
2%
Under age 18
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008
Figure 1.17 Source: U.S. Census Bureau SAIPE
aHardships: Related Data
• Foreclosures asee p. 42
• Bankruptcy asee p. 47
• Unemployment asee p. 49
• Underemployment asee p. 50
• Public assistance asee p. 58
• Infant health asee p. 66
• Lack of health insurance asee p. 69
• Housing cost burdens asee p. 83
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