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West Virginians need opportunities to earn way to financial security

3 min read
HOPPY KERCHEVAL

The U.S. Census Bureau has released new figures on poverty in America, and for West Virginia the findings are mixed. I'll get to those numbers shortly, but first here is some context:

The data come from the Census Bureau and Bureau of Labor Statistics. The agencies look at poverty two ways: The official poverty figure looks at pretax income. The supplemental poverty measure includes cash income as well as government benefits and geographic differences in housing costs. The state-by-state figures look at a three-year average of 2023, 2024 and 2025.

In terms of straight poverty, West Virginia's rate is high, 13.5%, nearly three points above the national average (10.7%) and the sixth highest in the country. Louisiana has the highest poverty rate at 19.6%, followed by Mississippi at 17.6%, New Mexico at 16%, Alabama at 15.2% and Kentucky at 13.7%.

West Virginians under 18 have the highest poverty rate of any age group at 16.3%; that is two points higher than the national average. Next come individuals 65 and older, with a poverty rate of 13.2%, compared with a national rate of 9.8%. The poverty rate for the working-age adult 18-64 group is 12.6%, compared with 9.6% nationally.

However, West Virginia's poverty picture changes when the data factors in the multiple government programs designed to help people, such as Social Security, Supplemental Security Income, food stamps, nutrition programs, housing assistance, taxes, certain necessary expenses, and differences in housing costs. Then, West Virginia's supplemental poverty rate drops from 13.5% to 12.1%. That is the 17th highest in the nation, and nearly one percentage point below the national average of 13%.

Notably, the child poverty rate falls from 16.3% to 11.3% under the supplemental measure. Overall, the estimated number of West Virginians living in poverty drops from 234,000 to approximately 210,000.

The figures suggest that government assistance and other adjustments make a meaningful difference in how poverty is calculated. Still, approximately 210,000 West Virginians are coping with the challenges of poverty.

A report released by the Federal Reserve this year found that 16% of adults nationwide did not pay all of their bills the prior month, while 8% said members of their family sometimes or often did not have enough to eat.

The survey also found that one in four adults skipped medical expenses, while 59% had to deal with an unexpected expense. Total credit card balances increased for individuals experiencing financial difficulty.

Studies consistently show a good job is an important pathway out of poverty, and that is the ongoing struggle in West Virginia, especially in areas where the coal industry has dried up. The state has seen meaningful growth in certain areas, such as the eastern panhandle and north central region, but the ongoing challenge is to extend that growth to other parts of the state.

Government assistance can help ease the burden of poverty, but West Virginia's long-term challenge is creating an economy where more people can earn their way to financial security.

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