Creating Healthy Communities / Reducing Poverty

Nearly one out of eight Californians live in poverty.¹

Everyone has a right to live a healthy life with easy access to meet their basic needs. Some communities, however, have a higher risk of being in poverty from factors that are beyond their control, such as institutional and structural racism, discrimination, and reduced access to stable housing, healthy foods, and safe neighborhoods. Poverty can also limit an individual’s access to educational and employment opportunities, further contributing to income inequality and prolonging cyclical and generational effects of poverty. Poverty is associated with societal exclusion and higher prevalence of mental illness as well as higher rates of chronic diseases and premature death. Strategies to improve economic mobility of families may help alleviate the negative impacts of poverty and break the generational cycle of poverty.2²

There are many ways to measure poverty. The California Poverty Measure (CPM) tracks the percentage of residents living in poverty, taking into account income, cost of living, and social safety net benefits.

Poverty

In the first quarter of 2023 (baseline time range), 13.2% of Californians lived in poverty. The most recent rate available is 13.2% (first quarter of 2023). The target is to be determined (TBD) for this indicator.

More Data about Poverty

Baseline

13.2%

Current Rate

13.2%

Target

TBD

Fast Facts

Meeting Basic Needs

Nearly one in eight Californians—about 5 million people—lacked sufficient financial resources to meet basic needs.¹

Working Poor

Most poor families in California are working families. Just over three in four (76%) poor Californians lived in families with at least one working adult.¹

Focus on Prevention

Without social safety net programs, more Californians would live in poverty, especially in the Inland Empire, Central Valley and Sierra. The largest social safety net programs kept an estimated 7.8% of Californians out of poverty.³

Safety net programs reduce poverty much more in inland areas: if we subtract these resources from family budgets, 13.9% more people in the Central Valley and Sierra would be poor, compared with 4.0% more in the Bay Area.³

Data Snapshot: Trends & Disparities

Socioeconomic Disparities

In the first quarter of 2023, the poverty rate for 25–64 year-old Californians with a college degree (6.4%) was lower compared to those without a high school diploma (22.3%).¹

Among working adults age 25-64 years old, 8.1% were poor, with rates much higher among those working part time (18.5%) as opposed to full time (5.3%).¹

The poverty rate for foreign-born Californians was 17.6%, compared to 11.5% for US-born residents; poverty among undocumented immigrants was 29.6%.¹

Geographic Disparities

The counties of Yolo (19.5%) and Santa Barbara (16.9%) had the highest poverty rates in California. Merced County had the lowest rate (7.7%).¹

Rates vary even more widely (from 6.1% to 26.1%) across legislative districts.¹

Demographic Disparities

In early 2023, the poverty rate was markedly higher for older adults 65 years and over (15.2%) compared to children (13.8%) and adults 18-64 years old (12.6%).¹

Latinos, in general, remain disproportionately poor, making up about half (50.7%) of poor Californians but only over a third (39.7%) of all Californians.¹

Poverty rates vary dramatically within racial/ethnic groups, with Central Americans (21.1%) and Middle Eastern/North Africans (20.3%) having the highest rates.¹

Percent of Residents Living in Poverty Based on California Poverty Measure, by County and Legislative District

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Percent of Residents Living in Poverty Based on California Poverty Measure, by Demographic Category

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Indicator: Percentage of Residents Living in Poverty

Indicator Description: The California Poverty Measure (CPM), a joint research effort by PPIC and the Stanford Center on Poverty and Inequality, draws on administrative and survey data to deliver a more comprehensive measure of poverty. It accounts for the cost of living and a range of family needs and resources, including social safety net benefits. The California Poverty Measure incorporates the changes in costs and standards of living since the official poverty measure was devised in the early 1960s—and accounts for geographic differences in the cost of living across the state. It also factors in tax credits and in-kind assistance that can augment family resources and subtracts medical, commuting, and childcare expenses.

Data Limitations: https://www.ppic.org/wp-content/uploads/1023cdf-appendix.pdf

Indicator Source: Public Policy Institute of California and Stanford Center on Poverty and Inequality, Poverty in California – Public Policy Institute of California

Indicator Calculation Methodology: https://www.ppic.org/wp-content/uploads/1023cdf-appendix.pdf

Data Collection Methodology: https://www.ppic.org/wp-content/uploads/1023cdf-appendix.pdf

Program URL Link:

Poverty in California – Public Policy Institute of California

https://www.ppic.org/interactive/california-poverty-by-county-and-legislative-district/

Reporting Cycle: Quarterly

1. Public Policy Institute of California. (2023). Poverty in California. Retrieved on December 11, 2024. https://www.ppic.org/wp-content/uploads/JTF_PovertyJTF.pdf

2. U.S. Department of Health and Human Services, Office of Disease Prevention and Health Promotion and Office of the Assistant Secretary of Health. (2018). Healthy People 2030. Social Determinants of Health Literature Summaries: Poverty. Retrieved on December 11, 2024. Poverty – Healthy People 2030 | health.gov

Stories & Solutions

Social Determinants of Health

What Are Social Determinants of Health? The social determinants of health are the conditions in which we live, learn, work, and play.1 These conditions include a broad range of socioeconomic and environmental factors, such as air and water quality, the quality of the built environment (e.g., housing quality; land [...]