A new report has found one in six full-time Iowa workers struggles to afford the cost of basic needs.
The non-profit Common Good Iowa, which advocates for families and children, estimated in its ninth annual report that 17.5% of all Iowa working households earn below what is needed to cover a basic-needs budget.
Figures from this year show more low-income Iowans are struggling as compared to last year’s report, even as the state has seen strong wage growth in recent years.
"Even though these families were making more each month, even though these wages, especially low wages were increasing, inflation just outpaced it during this time," Sean Finn, a policy analyst with Common Good Iowa, said.
Researchers used federal and state data to create a "bare bones" basic family budget for Iowans and compared different family situations, Finn said.
The report found 59% of single parents earned too little to meet the budget, while just 8.5% of married people without children did.
It also found disparities along racial lines, estimating a third of full-time Black and Latino workers make below what is needed to support their families’ basic needs, which is almost double the statewide average rate.
One reason is due to historical policies that contributed to systemic racism, like redlining, which have had lasting effects, Finn said.
"Even though it's technically illegal at this point, there's good evidence that redlining unofficially goes on to this day, including in the state of Iowa," he said.
The report recommends policy changes like increases to the minimum wage and policies that specifically give marginalized groups equal opportunities.
