State Data Show Welfare Leavers Cannot Afford Recession

State Data Show Welfare Leavers Cannot Afford Recession:
Former Welfare Recipients Continue To Bear Brunt Of Economic Downturn

To: National Desk
Contact: Tyler Prell of the The National Campaign For Jobs and
Income Support, 202-518-8047

WASHINGTON, Oct. 2 /U.S. Newswire/ -- Following the tragic
events of September 11, the American economy appears to be on
the brink of recession. While this is bad news for all
Americans, for people leaving welfare, it is even worse. Despite
the myth of success surrounding welfare reform, former welfare
recipients have remained poor, had difficulty finding employment
and experienced other hardships such as hunger. That is a
central finding of Leaving Welfare, Left Behind, a new study
released today by the National Campaign for Jobs and Income
Support.

"This study provides the most comprehensive look at how
former welfare recipients have fared under welfare reform. It is
not a pretty picture and it could get even worse," said Deepak
Bhargava, Director of the National Campaign for Jobs and Income
Support. "Contrary to HHS reports, analysis of state data shows
welfare 'leavers' have difficulty finding employment, have low
earnings and often return to welfare. A recession will only make
these problems worse."

Leaving Welfare, Left Behind is based on an in-depth analysis
of 18 state "leaver" studies released in 2000 and 2001 that
assess former welfare recipients' employment status, earnings,
access to "work supports" such as food stamps and Medicaid, rate
of return to the Temporary Assistance for Needy Families (TANF)
system and hardships including hunger and housing problems.
The study is part of the Make TANF Work! campaign, convened by
the National Campaign for Jobs and Income Support, which is set
to launch later this Fall. TANF is scheduled to be reauthorized
by Congress in 2002.

"Our findings make it clear that welfare reform as we know it
has failed. We must rethink the way we provide assistance and
opportunities for low-income families," said Bhargava. "As the
economic forecast grows dimmer every day, low-income people
enmeshed in the current system will remain in poverty without a
fundamental change in the TANF block grant."

Leaving Welfare, Left Behind is the first study to
comprehensively analyze available data regarding the economic
circumstances and well being of families leaving welfare. The
study finds that:

-- Welfare leavers very low earnings, and are concentrated in
low-wage, service industry jobs. For example, in Wisconsin only
30 percent of welfare leavers reported higher income one year
after exit than when they received cash assistance.

-- Welfare leavers are likely to be unemployed for a
significant period of time after leaving welfare with many
returning to welfare within a year of exit. For example, in
Washington, DC, only 39 percent of leavers reported continuous
employment one year after leaving welfare.

-- The "bright line" between families on welfare and low-wage
workers has virtually disappeared as many TANF recipients are
employed, and many TANF leavers are not. Families are churning
in and out of the labor market and on and off TANF, but
remaining poor throughout the cycle.

-- Unemployment among welfare leavers is made worse by poor
supports available to low-income parents. Parents report
significant problems with childcare, transportation, proximity
of available jobs and insufficient education and training. Other
factors include family and health problems, including
significant care giving responsibilities and poor physical or
mental health for parents or children. Parents also report very
low levels of participation in Medicaid and food stamps, which
are critical supports for families.

-- Welfare leavers face significant hardship including hunger
and housing difficulties. For example, in New Mexico, 25 percent
of leavers reported no way to buy food at some point after
leaving the system (compared to 14 percent of current welfare
recipients).

"These findings speak for themselves. They suggest the need
to look forward and put the empty rhetoric of welfare reform
behind us," said Bhargava. "As Congress reauthorizes the TANF
block grant next year, the Make TANF Work! campaign will give
these issues a voice in the national debate, mobilizing
grassroots activists around a new policy framework that
transforms TANF into a platform of opportunity for all
low-income families."

Leaving Welfare, Left Behind offers several policy
recommendations to correct the shortcomings of the current
system. Among the recommendations are: an increase in the
federal minimum wage, expansion of benefits in the Food Stamp
program, expanded health insurance for low-income working
parents and simplification of all application and administration
procedures. In addition, the National Campaign for Jobs and
Income Support recommends that Congress take immediate steps to
expand the Unemployment Insurance program to cover welfare
leavers and low-wage workers who lose their jobs in a recession.

To receive a copy of the study or to speak with Deepak
Bhargava, Director of the National Campaign for Jobs and Income
Support, contact Tyler Prell at 202-518-8047 or
tyler@publicinterestpr.com.

------
The National Campaign for Jobs and Income Support is a new
national coalition of 1000 grassroots organizations in 40 states
advancing solutions to poverty at the state and national levels.
Visit its Web site at www.NationalCampaign.org.

/U.S. Newswire 202-347-2770/
10/02 11:06