Even as the economy begins to recover, youth are continuing to struggle in the current job market. A May 31 New York Times story highlights the difficulties faced by high school and college students seeking work. In April, individuals aged 16-24 faced a record high unemployment rate of 19.6%. As the NYT reports, this is double the national average. In fact, unemployment rates are directly related to age, and the younger an individual, the less likely he or she is to have a job. Youth unemployment rates not only deprive young people and their families of an immediate source of income, but also lead to long-term consequences in lifetime earnings potential. Although the current high youth unemployment rates may have a number of causes, what is clear is that a number of young people want to get back into the job market. Action needs to be taken so that currently unemployed youth can stay off the streets this summer and develop critical work experience that will allow them to be competitive in future job markets.

One important way to provide these job opportunities for unemployed youth is through federal funding for summer jobs. In fact, last Friday, May 28, the House passed a bill (H.R. 4213) that provided for $1 billion in summer jobs funding. According to estimates by Northeastern researchers, this “$1 billion federal infusion” has the potential to “create some 300,000 job slots this summer.” The passage of this bill in the House marks an essential first step towards assisting unemployed youth in the months to come. However, this funding for summer jobs is not included in the Senate version of the tax extender bill. Fortunately, it is not yet too late—there is still a critical window of opportunity for funding for summer jobs to be included in the final version of this bill after the Senate returns from its Memorial Day recess. To provide economic opportunity and security to America’s youth in both the short run and the long term, the final Congressional version of the tax extender bill must support summer jobs funding of at least $1 billion. Without federal action, unemployed youth will remain, in the words of Adele McKeon, a career specialist with the Boston Private Industry Council, the “silent victims of the economy.”

May 25, 2010

What is the Earned Income Tax Credit and why does it matter?

The Earned Income Tax Credit is one of the single most important ways to make work pay. The EITC is a refundable federal income tax credit for low-wage working individuals and families. Refundable means that if a worker’s credit exceeds the amount of taxes owed, they can receive the difference in the form of a tax refund. Congress originally approved this program in 1975 in part to offset the burden of payroll taxes and to provide an incentive to work. Today, the EITC remains essential to promote economic security and allow low-income workers maintain a decent standard of living.

The EITC is a public policy that reflects basic values—at its core is the belief that individuals who work full time at minimum wage simply should not be forced to raise families below the poverty line. The EITC helps these Americans earn a sufficient amount so that work pays more than welfare. Parents who earn $10,000 to $20,000 each year are eligible under EITC for the highest credit, and the credit amount decreases as annual earnings increase.

Download this fact sheet (pdf)

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May 25, 2010

What is the Child Tax Credit and why does it matter?

The Child Tax Credit is one of the most important ways to protect families’ economic security. The CTC gives working parents additional funds to help them cope with the rising costs of maintaining a household and raising their children. Depending on the family’s earnings, the CTC allows families to claim up to $1,000 for each child. It represents an essential way to help families achieve and maintain their basic quality of life.

Yet the CTC’s effectiveness depends a great deal on how the credit is structured. The credit was not able to meet its full potential in the past because program rules often denied low-income families the full benefits of the credit. In fact, annual earnings below $13,000 were not considered in calculating tax credit, denying the credit to those who needed it most. Congress made sensible reforms to the CTC last year that allow families to count their yearly earnings below $13,000, but these changes are temporary and are scheduled to expire at the end of 2010.

An end of these improvements would be devastating for low-wage families across America. A parent who works full time in a minimum wage position will have his or her credit reduced from $1,800 to $320 at the end of 2010 if Congress does not make the change permanent. This reduction would seriously threaten the ability of low-income, hard-working families to maintain their economic security and self-sufficiency. And it would push 600,000 children of working families into poverty.

Download this fact sheet (pdf).

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There are 6.4 jobseekers for every unfilled job - and that gap is growing. Two-thirds of Americans are close to someone who is out of work. And joblessness is worst for communities of color, youth, and women who head households. While the investments made through the federal economic recovery legislation have created or saved over 1 million jobs so far, the recession is so deep that more federal action is urgently needed.

Congress and the Obama Administration are working on job creation plans. What should they do? How can we build support for job creation that does not leave the poorest people behind?

Listen in to hear the answers from a January 28, 2010 webinar featuring Deborah Weinstein from the Coalition of Human Needs, Lawrence Mishel of the Economic Policy Institute, Deepak Bhargava of the Center for Community Change, and Alan Charney of Jobs for America Now!

Click here to listen

From Coalition on Human Needs, a Half in Ten partner:

When Congress passed its Budget Resolution on April 27, it generally endorsed the President’s priorities. The Budget Resolution only answers some of the year’s policy-making questions: what, and, at least as far as the annual appropriations bottom line is concerned, how much. Advocates were pleased with the “what” answers: Congress committed to grapple with comprehensive health care reform and climate change, two of the President’s top priorities. The Budget Resolution also commits Congress to many other legislative tasks, including reauthorizing child nutrition programs, making student loans cheaper by reducing the role of private lenders, and creating a home visiting programfor new parents, as the President proposed.

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In his presentation, The Science of Early Childhood Development: Closing the Gap Between What We know and What we Do, Dr. Jack Shonkoff illustrates the ways that stresses like poverty can permanently impair children’s development.

Poverty and Early Childhood Development (pdf)

In light of the substantial (and rising) costs of child care in the United States, the National Women’s Law Center released an analysis of the child care policies enacted by various states. While some advances have been made in the last year or so, NWLC found that over the last decade, most states made no progress, and in many cases, have actually moved backward in dealing with this problem.
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Lisa Donner, the Executive Director of Half in Ten, contributes to Politico’s “Dear 44: Ideas for the Next President” series:

What should the 44th president do about poverty in our great nation? He should make cutting poverty a clear goal of his administration and prioritize a set of initiatives that will make the most significant contributions to meeting it. We can — and should — cut poverty in half in the next 10 years.
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Speaking before activists and community leaders at North
Philadelphia’s Thankful Baptist Church, Senator John Edwards launched
the Half in Ten campaign by calling on Congress, the presidential
candidates, and all Americans to make the fight against poverty a
priority.
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