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North Dakota’s Poverty Rate Increases Slightly in 2005

Certain populations in North Dakota are harder hit by poverty than others.

An estimated 11.6 percent of North Dakotans were living in poverty in 2005 (latest data available), up from 10.8 percent in 2004. Poverty thresholds are updated annually by the U.S. Census Bureau following guidelines established by the Social Security Administration.

The thresholds vary by family size and number of children. In 2005, the poverty threshold was an income of $9,973 for one person and $19,806 for a family of four with two children under age18.

This month’s “Population Bulletin,” a monthly publication from the North Dakota State Data Center at North Dakota State University, focuses on poverty estimates released from the Small Area Income and Poverty Estimates (SAIPE) program through the U.S. Census Bureau. SAIPE provides annual estimates of the number and percentage of adults and children living in poverty. These estimates are based on a sample of households.

Due to the small population base in North Dakota and the need to keep costs of data collection manageable, the sample sizes for the state are relatively small, which increases the likelihood of error. Therefore, confidence intervals are calculated to account for this sampling error. For example, SAIPE estimates indicate that 11.6 percent of all North Dakotans were living in poverty in 2005. However, to be 90 percent confident of the true poverty level, one should use a range from 11.2 percent to 12.1 percent.

Certain populations in North Dakota are harder hit by poverty than others. Children had a greater likelihood of living in poverty than the general public. The percentage of North Dakota children ages 0 to 17 living in poverty was estimated at 14.5 percent in 2005. The percentage of children ages 0 to 4 living in poverty was 18.9 percent and the percentage of children ages 5 to 17 living in families below the poverty level was 12.3 percent.

“These statistics should give us pause when we realize that nearly one in five children under the age of 5 is impoverished in North Dakota,” says Richard Rathge, State Data Center director.

In addition, poverty rates in North Dakota were notably higher in Native American reservation areas, with Sioux, Benson and Rolette counties having more than one in four people living in poverty in 2005.

When making important decisions based on these data, one needs to be mindful of the confidence intervals (13.5 percent to 15.5 percent for North Dakota children ages 0 to 17. For children ages 0 to 4, 17 percent to 20.8 percent, and for children ages 5 to 17, 11.1 percent to 13.5 percent).

Nationally, 13.3 percent of all people were living in poverty in 2005. The number of children ages 0 to 17 living in poverty was 18.5 percent and children ages 0 to 4 living in poverty was 21.3 percent.

The 90 percent confidence intervals are 13.2 percent to 13.4 percent for all people, 18.4 percent to 18.7 percent for children ages 0 to 17 and 21 percent to 21.5 percent for children ages 0 to 4.


NDSU Agriculture Communication

Source:Richard Rathge, (701) 231-8621, richard.rathge@ndsu.edu
Editor:Rich Mattern, (701) 231-6136, richard.mattern@ndsu.edu

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