U.S. poverty: Shaefer and Seefeldt discuss labor markets, child tax credits, and racial gaps | Gerald R. Ford School of Public Policy

U.S. poverty: Shaefer and Seefeldt discuss labor markets, child tax credits, and racial gaps

September 11, 2025

U.S. inflation-adjusted household income increased but poverty rates showed only modest changes last year, the U.S. Census Bureau reported , offering a mixed snapshot of how American households fared as the economy returned to pre-coronavirus pandemic growth levels, job growth boomed and inflation eased. The Ford School's Luke Shaefer and Kristin Seefeldt have been sought for their expertise in U.S. labor markets, child poverty solutions, and unemployment rates across various demographics. 

See their recent comments below:

"Detroit's poverty rate rises to highest number since 2017 amid city's comeback" The Detroit News, September 11, 2025 

Analyzing poverty rates over the years, Shaefer warned The Detroit News he is wary of the future. "We're still in a much better place than a decade ago, but we are going in the wrong direction, especially this year," he said. Despite poverty levels being comparably better now than in the past, Shaefer did not hesitate to offer a disheartening prediction. He told the network, "We have to buckle up for a couple of years of rising poverty."

Additionally, Shaefer addressed the important role Social Security plays in poverty rates. "Social Security is incredibly successful at lifting people out of poverty, but when we have inflation, we sometimes see an increase in poverty," he noted. He raises an important point, given that many seniors live just above the poverty line, relying on a fixed income while inflation impacts purchasing power.

"NJ could dramatically cut child poverty with cash payments, report says" NJ PBS, September 10, 2025 

Recent studies have shown that cash payments and tax credits could significantly reduce child poverty in New Jersey. NJ PBS turned to  Shaefer for information on the program fighting child poverty in Flint, MI, which he co-founded. The Rx Kids program provides new mothers with $1,500 during pregnancy and $500 a month until their child turns one. “Families use it to buy cribs, food, diapers, even transportation to prenatal appointments... We’ve seen healthier babies, reductions in postpartum depression, fewer evictions and more stability for families," said Shaefer.

"The Poverty Rate Was Stable Last Year, as Household Income Grew Slightly" The New York Times, September 9, 2025

Over the past few years, the national unemployment rate has seen many fluctuations. Shaefer told The New York Times how these fluctuations are seen to varying degrees among diverse demographics, specifically for Black Americans. Black people were the only racial group to see a decline in median earnings, a significant increase in poverty rates, and a decline in health insurance coverage. He said the regression was likely attributable to the unwinding of the super-tight labor market of 2023. Then, the unemployment rate for Black workers sank to a record low of 4.8 percent. It has been gradually rising, and now stands at 7.5 percent, compared with 4.3 percent overall.

“I think that’s where we’re starting to see some of the gains lost,” Mr. Shaefer said. “The consistency across all three measures of this divergence is what is notable.”

Incomes rose and poverty fell last year — so why do so many Americans feel ‘tapped out’? MarketWatch, September 9, 2025

One data point in the report showed that households in the 90th percentile had median incomes of $251,000, which was a statistically notable jump from a year earlier.

“I don’t think it shows a story of getting ahead, unless you were already ahead to begin with,” Seefeldt told MarketWatch. Even the Census Bureau’s broader measure of poverty only goes so far in showing the price pressures that people face, Seefeldt noted: “It’s not capturing the day-to-day realities that face folks.”