The Veteran Working-Poor: the Relationship Between Labor Force Activity and Poverty Status
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The Veteran Working-Poor: The Relationship between Labor Force Activity and Poverty Status November 2017 Department of Veterans Affairs The Honorable David Shulkin Secretary Office of Enterprise Integration Dat P. Tran Acting Assistant Secretary Office of Data Governance and Analytics Susan Sullivan Deputy Assistant Secretary The Office of Data Governance and Analytics serve as the authoritative clearinghouse for VA to collect, validate, analyze, and disseminate key statistics on Veteran population and VA programs to support planning, analysis, and decision-making activities. For more information on reports, surveys, or statistics regarding the Veteran population, check our website at http://www.va.gov/vetdata/. For general inquiries, please e-mail us at [email protected]. Recommended citation for this report: The Veteran Working-Poor: The Relationship between Labor Force Activity and Poverty Status. National Center for Veterans Analysis and Statistics, Department of Veterans Affairs, Washington, DC. November 2017 1 | Page Contents Executive Summary ....................................................................................................................................... 3 Introduction .................................................................................................................................................. 4 Demographic Characteristics .................................................................................................................... 5 Disability ........................................................................................................................................................ 7 Educational Attainment ................................................................................................................................ 8 Occupation .................................................................................................................................................... 8 Health Insurance Coverage ........................................................................................................................... 9 Families ....................................................................................................................................................... 10 Unrelated Individuals .................................................................................................................................. 10 Conclusion ................................................................................................................................................... 11 Definitions and Concepts: ........................................................................................................................... 12 References .................................................................................................................................................. 13 Figure 1. Working-poor and Unemployment Rates of Veterans in the Labor Force, 2009-2015 ................. 5 Figure 2. Working-poor Rate of Veterans and non-Veterans in the Labor Force by Age, 2015 ................... 6 Figure 3. Working-poor Rate of Veterans and non-Veterans in the Labor Force by Sex, 2015 .................... 6 Figure 4. Working-poor Rate of Veterans in the Labor Force by Race/Ethnicity, 2015 ................................ 7 Figure 5. Working-poor Rate of Veterans and non-Veterans in the Labor Force by Sex, 2015 .................... 8 Figure 6. Working-poor Rate of Veterans and non-Veterans in the Labor Force by Occupation, 2015 ....... 9 Figure 7. Working-poor Rate of Veterans and non-Veterans in the Labor Force by Health Insurance Coverage, 2015 ........................................................................................................................................... 10 Table 1. Poverty Status of Working Aged Veterans and Non-Veterans in the Labor Force, 2009-2015 (in thousands) .................................................................................................................................................... 4 Table 2. Working-poor Rate of Veterans in the Labor Force by Household Type, 2015 ............................ 11 2 | Page Executive Summary The Department of Veterans Affairs (VA) has an interest in the employment and poverty status of Veterans. The mission is to fulfill President Lincoln's promise “To care for him who shall have borne the battle, and for his widow, and his orphan” by serving and honoring the men and women who are America’s Veterans. One way of fulfilling the mission is to care for this vulnerable population. This report presents data on the working-poor and describes the relationship between labor force activity and poverty status in 2015 among Veteran workers and their families. Working-poor is defined as individuals who are participating in the labor and whose income is at or below the poverty level. The report uses the 2015 American Community Survey (ACS) Public Use Microdata Sample (PUMS) data.) Public Use Microdata Sample (PUMS), conducted annually by the U.S. Census Bureau. Highlights: • In 2015, there were 7.2 million working age Veterans who participated in the labor force (out of 9.4 million working age Veterans). Of those in the labor force, almost 341,000 (or 4.7 percent) fell below the official poverty level. • From 2009 to 2015 despite decreasing unemployment rates, working-poor rates remain relatively unchanged • The working-poor rates are highest among Veterans and non-Veterans between the ages of 17 and 24 years old (9.8 percent and 19.0 percent, respectively). • Veterans who served during the Post-9/11 Gulf War Era have the highest working-poor rate (5.5 percent) compared to those who served during either Pre-9/11 Gulf War era (4.1 percent), Vietnam Era (3.7 percent), or peacetime only (4.7 percent). • In 2015, racial and ethnic minorities have a higher working-poor rate than non-minorities regardless of Veteran status. The Working-poor rate for Veteran minorities is 6.4 percent compared to 4.0 percent for non-Minorities. • The likelihood of being classified as working-poor diminishes as workers attain higher levels of education. Veterans with high school or less education (6.6 percent) had a higher working-poor rate than those with some college (5.1 percent), Bachelor’s (2.8 percent) and advanced degree (1.6 percent). • Women are more likely than men to be among the working-poor. The working-poor rate of women Veterans (7.1 percent) was almost 3 percentage points higher than that of men Veterans (4.4 percent). • Veterans and non-Veterans with a disability are more likely to be among the working-poor than those who are non-disabled. The working-poor rate for Veterans with a disability is 7.9 percent compared to 4.4 percent for those with no disability. Non-Veterans with a disability have a working-poor rate of 16.0 percent compared to 8.9 percent for those with no disability. • Veterans with a service-connected disability were less likely to be among the working-poor than Veterans with no service-connected disability (3.6 percent compared to 5.0 percent). 3 | Page Introduction The Department of Veterans Affairs (VA) has an interest in the employment and poverty status of Veterans. The mission is to fulfill President Lincoln's promise “To care for him who shall have borne the battle, and for his widow, and his orphan” by serving and honoring the men and women who are America’s Veterans. One way of fulfilling the mission is to care for this vulnerable population. This report presents data on the working-poor and describes the relationship between labor force activity and poverty status in 2015 among Veteran workers and their families. The Bureau of Labor Statistics (BLS) defines the working-poor as people who spent at least 27 weeks in the labor force (i.e., those working or looking for work) but whose incomes still fell below the official poverty level. (1) Due to certain data limitations for this report, working-poor is defined as individuals who are participating in the labor and whose income is at or below the poverty level. To be considered part of the labor force, an individual must be between the ages of 18 and 64 years, referred to as working age, and either employed or actively looking for employment. The specific income thresholds used to determine poverty status vary depending on whether the individual is living with a family member or living alone with non-relatives. The poverty threshold for Veterans living with family members is determined by the family’s total income. Personal income is used to determine poverty levels for Veterans living alone or with non-relatives. All calculations in this report are based upon the noninstitutionalized civilian population. For additional information see definitions below. In 2015, there were 7.2 million working age Veterans who participated in the labor force (out of 9.4 million working age Veterans). Of those in the labor force, almost 341,000 (or 4.7 percent) fell below the official poverty level. Table 1. Poverty Status of Working Aged Veterans and Non-Veterans in the Labor Force, 2009-2015 (in thousands) Total in the Working- Year Veteran Status labor force In poverty poor rate 2009 Veteran 9,796 435 4.4 Non-Veteran 138,005 12,788 9.3 2010 Veteran 9,537 484 5.1 Non-Veteran 138,037 13,998 10.1 2011 Veteran 9,158 484 5.3 Non-Veteran 138,692 14,861 10.7 2012 Veteran 8,743 457 5.2 Non-Veteran 139,843 14,610 10.4 2013 Veteran 7,675 395 5.1 Non-Veteran 141,218 14,626 10.4 2014 Veteran 7,442 367