US poverty rate back to pre-crisis levels

WASHINGTON - A stronger US economy lifted American household incomes last year and drove the poverty rate down to the level seen before the financial crisis.

The median household income increased by 3.2 percent to $59,039 (£44,480), rising for a second consecutive year as more people found full time jobs.

At the same time, those living below the poverty line fell to 12.7 percent, the lowest since 2007, the US Census said.

Women's earnings also rose relative to men's for the first time in 10 years.

The US Census report, based on a survey of about 95,000 households, showed broad gains across most income, racial and ethnic groups.

The numbers reflect one of the longest economic expansions in US history, with more than six years of steady job growth.

The unemployment rate fell to its lowest level since 2001 earlier this year.

According to the US Census report, the number of men and women working full time increased by 2.2 million from 2015 to 2016.

About 40.6 million people were living below the poverty line in 2016, defined as an annual income of about $24,500 for a family of four.

That number fell by 2.5 million from 2015, driving the poverty rate down from 13.5% to 12.7%. I t was 12.5% in 2007. Scott Allard, a scholar with the Brookings Institution think tank and author of Places in Need, called the report "good news".

"They reflect the impact of sustained job growth and the help safety net programs provide to low-income families trying to grab the next rung on the ladder," he said.

However, the richest families had some of the biggest gains.

The top 5 percent of families accounted for more than one fifth of total income in 2016, similar to the previous year. The average income in that group was more than $375,000, up more than 5.5 percent from 2015.-