Poverty, a critical issue in Detroit's mayoral race, is on the rise
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Detroit's poverty rate recently hit its highest point in seven years, per new census data, even as incomes are rising for local residents.
Why it matters: Poverty is the issue most critical to the city's equitable future, and is a central theme of the ongoing mayoral race.
- Detroit is at a pivotal moment, in need of "bold action, strategic planning and creative thinking" from its next mayor, nonprofit think tank Detroit Future City recently wrote.
The latest: Census estimates released this month show that while the rate of residents living in poverty has generally declined, it rose between 2023-24 to 34.5% — the highest mark since 2017.
- At the same time, Detroit's median income increased nearly 3% from 2023-24, and 52% in total since 2010.
Context: Federal and state economic policies have tremendous sway on Detroiters' livelihoods.
- Nationally, companies are passing along tariff-related costs to consumers as the labor market shows fresh signs of weakness, Axios' Courtenay Brown recently reported.
- Going into and through the pandemic, lower-end wages rose quicker in part because a tight labor market gave workers leverage for better pay, U of M economic forecaster Gabriel Ehrlich tells Axios.
Yes, but: Inflation has been tearing away at wage gains, especially for low-income Americans.
What they're saying: The city has seen measurable economic progress "we should be proud of," Luke Shaefer, director of U of M Poverty Solutions, tells Axios.
- But "in the last two years, we've seen a little bit of slippage. ... We're probably in for a couple years of losing some ground, but I would still say we're worlds above where we were in 2012."
Between the lines: When it comes to financial stability, it's crucial to account for concerns around work-life balance, caregiving and breadwinning, says Danielle Atkinson, national executive director of Mothering Justice.
- The Detroit-based organization advocates for mothers of color, who face disproportionate financial challenges.
- "So all those things need to be factored in when we're talking about wages and accessibility to work. We not only need good wages. We need benefits. We need jobs that allow us to caregive, financially but also with time off."
What they found: U of M researchers and partners found that in 2021, under half of Detroit's primary earners (the household breadwinners) who worked full-time made a living wage that covered their basic needs.
- That's compared with 72% in Chicago and 62% in Cleveland.
What's next: This is the first story in a series looking at income, poverty and the mayor's race.
- Look out for future coverage on the two mayoral candidates' plans.