Rural poverty rate falls sharply, still above US average

The poverty rate in rural America was 16.1 percent, down sharply from the previous year, but still notably higher than the U.S. average, said the Census Bureau’s annual Income and Poverty report. Census said the rural poverty rate dropped by 1.6 points for 2013, from 17.7 percent in 2013. One-fifth of Americans live in rural areas.

The change meant 7.6 million rural Americans were in poverty, nearly 900,000 fewer than the previous year. As usual, the report did not suggest why the poverty rate changed for the nation or for various divisions of the population.

The U.S. rate was 14.5 percent, down 0.5 percent from the previous year. It was the first decline since 2006 but the poverty rate remains 2 points higher than in 2007, before recession hit. The childhood poverty rate fell for the first time since 2000. Rates for suburban and metropolitan areas did not change significantly from the previous year.

Rural poverty rates have run above the U.S. average for years. Incomes are lowest in rural areas. The Census Bureau said median household income in rural America was $42,881, up 2.6 percent in a year, while suburban income was highest at $59,497. The U.S. median household income was $51,939, mostly unchanged for a second year after two years of declines.

The economy is growing too slowly to improve the living standards of low- and middle-income people, said Rob Greenstein of the think tank Center for Budget and Policy Priorities. He said household income was 8 percent lower than in 2007. Greenstein said the report showed the federal safety net “is producing results.” Food stamps are not included in the official poverty gauge but if it is counted as income, it lifted 3.7 million people above the poverty line, he said.

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