Food stamp use up
Almost 20 cents of every dollar in total personal income in the Hudson Valley in the last quarter of 2009 was the result of “transfer payments,” some form of remittance from government to individual.
That figure is among the many negative indicators highlighted in a study by the Marist Bureau of Economic Research that reveals that while economists posit the Great Recession has past, it is still gripping many households in the Hudson Valley where few jobs are available and individuals and families need more help to get by.
“While the overall economic picture nationally, statewide and regionally shows improvement, the effects of that expansion are not being felt by individuals and families,” said Christy Huebner Caridi, director of the bureau.
The simplest reason why is a declining number of jobs in the Hudson Valley. Since December 2007, the number of valley residents who are employed, whatever the location of the job, has dropped by 86,600 – a 7.5 percent decline. At the same time, the number of jobs available in the Hudson Valley has also fallen by 30,900 jobs ”“ a 3.15 percent decline. Additionally, there are growing numbers of underemployed workers and overqualified workers laboring in jobs that don”™t pay a salary commensurate with their skills. Those who simply have stopped looking for work further darken the picture without appearing on statistical counts.
Caridi said lingering weakness in the labor market creates dependence on income maintenance payments also known as transfer payments. This “places a floor under the economy,” said Caridi, but “is not a viable substitute for job and income growth.”
The result is predictable. During this current economic downturn, transfer payments statewide are up 19 percent. And the demand for food stamps and extended unemployment payments is reaching record highs. For the fourth quarter of 2009, one out of every 13.5 persons in the Hudson Valley was receiving food stamp benefits a 47 percent increase from prerecession days in 2007.
The pathway to reversing these trends is straightforward. “To create a broad-based recovery in the household sector needs the replacement of income maintenance payments by gainful employment,” said Caridi in her written release.