SEPT. 12, 2018 — The U.S. Census Bureau announced today that real median household income increased by 1.8 percent between 2016 and 2017, while the official poverty rate decreased 0.4 percentage points. At the same time, the number of people without health insurance coverage and the uninsured rate were not statistically different from 2016.
Median household income in the United States in 2017 was $61,372, an increase in real terms of 1.8 percent from the 2016 median income of $60,309. This is the third consecutive annual increase in median household income.
The nation’s official poverty rate in 2017 was 12.3 percent, with 39.7 million people in poverty. The number of people in poverty in 2017 was not statistically different from the number in poverty in 2016. The 0.4 percentage-point decrease in the poverty rate from 2016 (12.7 percent) to 2017 represents the third consecutive annual decline in poverty. Since 2014, the poverty rate has fallen 2.5 percentage points, from 14.8 percent to 12.3 percent.
The percentage of people without health insurance coverage for the entire 2017 calendar year was 8.8 percent, or 28.5 million, not statistically different from 2016 (8.8 percent or 28.1 million people). Between 2016 and 2017, the number of people with health insurance coverage increased by 2.3 million, up to 294.6 million.
These findings are contained in two reports: Income and Poverty in the United States: 2017 and Health Insurance Coverage in the United States: 2017.
Another Census Bureau report, The Supplemental Poverty Measure: 2017, was also released today. The supplemental poverty rate in 2017 was 13.9 percent, not statistically different from the 2016 supplemental poverty rate of 14.0 percent. The Supplemental Poverty Measure (SPM) provides an alternative way of measuring poverty in the United States and serves as an additional indicator of economic well-being. The Census Bureau has published poverty estimates using the SPM annually since 2011 with the collaboration of the Bureau of Labor Statistics.
The Current Population Survey, sponsored jointly by the Census Bureau and Bureau of Labor Statistics, is conducted every month and is the primary source of labor force statistics for the U.S. population; it is used to calculate the monthly unemployment rate estimates. Supplements are added in most months; the Annual Social and Economic Supplement is designed to give annual, national estimates of income, poverty and health insurance numbers and rates. The most recent Annual Social and Economic Supplement was conducted nationwide (February, March and April 2018) and collected information about income and health insurance coverage during the 2017 calendar year.
The Current Population Survey-based income and poverty report includes comparisons with the previous year, and historical tables in the report contain statistics back to 1959. The health insurance report is based on both the Current Population Survey and the American Community Survey. State and local income, poverty and health insurance estimates will be released Thursday, Sept. 13, from the American Community Survey.
(Race data refer to people reporting a single race only; Hispanics can be of any race.)
The Supplemental Poverty Measure (SPM) extends the official poverty measure by taking into account many of the government programs designed to assist low-income families and individuals that are not included in the current official poverty measure.
The SPM released today shows:
While the official poverty measure includes only pretax money income, the supplemental poverty measure adds the value of in-kind benefits, such as the Supplemental Nutrition Assistance Program, school lunches, housing assistance and refundable tax credits.
Additionally, the SPM deducts necessary expenses for critical goods and services from income. Expenses that are deducted include: taxes, child care, commuting expenses, contributions toward the cost of medical care and health insurance premiums, and child support paid to another household. The SPM permits the examination of the effects of government transfers on poverty estimates. For example, not including refundable tax credits (the Earned Income Tax Credit and the refundable portion of the child tax credit) in resources, the poverty rate for all people would have been 16.5 percent rather than 13.9 percent. The SPM does not replace the official poverty measure and will not be used to determine eligibility for government programs.
(Race data refer to people reporting a single race only; Hispanics can be of any race.)
Regional trends are available for income, poverty and health insurance in each respective report, as well as state level data for health insurance.
State-level health insurance data from the American Community Survey are included in this report. On Thursday, Sept.13, the Census Bureau will release all 2017 single-year estimates of median household income, poverty and health insurance for all states, counties, places and other geographic units with populations of 65,000 or more from the American Community Survey. These statistics will include numerous social, economic and housing characteristics, such as language, education, commuting, employment, mortgage status and rent. Subscribers will be able to access these estimates on an embargoed basis.
The American Community Survey provides a wide range of important statistics about people and housing for every community (i.e., census tracts or neighborhoods) across the nation. The results are used by everyone from town and city planners to retailers and homebuilders. The survey is the only source of local estimates for most of the 40 topics it covers.
The Current Population Survey Annual Social and Economic Supplement and American Community Survey are subject to sampling and nonsampling errors. All comparisons made in each respective report have been tested and found to be statistically significant at the 90 percent confidence level, unless otherwise noted.
For additional information on the source of the data and accuracy of the Income, Poverty and Health Insurance estimates, visit <https://www2.census.gov/library/publications/2018/demo/p60-263sa.pdf>.
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