New Report Shows Welfare Families Have Gone To Work But Remain Poor; Part-time, Temporary Jobs Leave Many Below Poverty Level

4/24/2002

From: Robyn Ziegler, 312-408-2580; (cell) 708.261.1063 or Valerie Denney, (cell) 312-282-2229 or Mary O'Connell, 312-795-3816

CHICAGO, April 24 -- Hundreds of thousands of Midwest welfare recipients have gone to work since 1996, but most have taken jobs that pay low wages, are part-time, or don't last, according to a major report released today by the Joyce Foundation. As a result, most of those who have made the transition from welfare to work remain poor.

These findings and recommendations were released today in "Welfare to Work: What Have We Learned?" The report presents leading research on welfare-to-work initiatives in Illinois, Indiana, Iowa, Michigan, Minnesota, Ohio, and Wisconsin. Midwest states have been innovators on welfare policy both before and since the 1996 national welfare reform.

"We hope policymakers will use this information to build on the gains of the last five years, stabilize working families, help them weather economic downturns, and provide the supports they need to climb out of poverty," said Ellen Alberding, president of the Joyce Foundation. "Meanwhile, we need strategies to reach out to the poorest families still untouched by policy reforms or national prosperity."

The report's major findings include:

-- Caseloads have declined across the board -- Part-time and temporary work and low wages leave families in most states below the federal poverty level for a family of three. -- Hunger, lack of health care, and other hardships affect many families. -- Many former recipients express satisfaction about getting jobs. -- Programs such as Medicaid, food stamps, and subsidized childcare help many working families, but others are not getting information about available assistance.

The research also shows most who left welfare for work cycled in and out of low-wage jobs. Others faced serious barriers, including health and mental health problems preventing them from taking jobs despite the pressure to do so.

Report recommendations include:

-- Invest in effective education and training. -- Maintain funding levels -- Restructure the safety net to build supports around work -- Maintain state innovation and flexibility to help individual families

The Joyce Foundation has invested over $8 million in research to study the effects of welfare reform in the Midwest. Based in Chicago with assets of just under $800 million, the Foundation supports efforts to strengthen public policies in ways that improve the quality of life in the Great Lakes region.

Access full report at www.joycefdn.org/welrept