Idaho’s poverty rate is at 10.6%, ranking 15th lowest among the 50 states, District of Columbia and Puerto Rico, according to the U.S. Census Bureau’s recently released 2019-2023 data. The state has dropped five percentage points from the prior (2014-2018) level of 15.6% improving from its previous 28th rank.
Nationally, the population earning below the poverty level has also declined over the past five years. The nation’s poverty rate is 12.4%, dropping 3.2 percentage points from the previous level of 15.6%.
Figure 1
A full breakdown of all states, D.C. and Puerto Rico is provided at the end of this blog.
Poverty rates in Idaho
The decrease in poverty in Idaho is a result of many factors including the COVID-19 pandemic’s safety net, the organic wage growth to recruit and retain workers, the acceptance of remote work and the entrance of more affluent or higher earning new Idaho residents mostly from California, Washington, Oregon and Utah.
Idaho’s increasingly diverse mix of industry combined with its population growth has resulted in national recognition for both population, wage and job growth.
The poverty rates of Idaho’s counties show great improvement when compared with the 2014-2018 levels. Of Idaho’s 44 counties, 30 had volatile swings ranging everywhere from 33 spots to four spots. Only 27% of Idaho counties remained within three spots of their prior ranking, while two experienced no change.
Some of the counties with the smallest population carried the lowest poverty rates, as shown in Figure 2 below.
Both Caribou and Blaine counties’ rank did not change much from the previous five-year survey. Caribou’s economy continues to be driven by the extraction and manufacturing base that has thrived for decades, providing stable jobs. Blaine’s economy revolves around the tourism industry and the services provided to the multi-million-dollar estates, which in many cases are not a primary residence.
Camas and Boise saw an influx of those wanting to dwell in the mountains, particularly during a pandemic, with broadband or some form of connectivity providing the option to work from home.
Power County and its highly agricultural economic base experienced good returns on their investments and the expansion of a national food processor that brought construction workers and manufacturing jobs to the county.
Figure 2
Similar to the counties with a low poverty rate, some of the counties with the highest poverty rate were also less populated (Figure 3), with prices typically higher for groceries, health care and fuel. The less populated counties with their either high or low poverty rates tend to bookend the larger counties with more stable and diverse economies.
Both Latah and Madison counties are home to universities with agriculture as their economic base and carry high levels of poverty. These could be attributable to the student status of some residents and the higher cost of living when there is high demand for apartments. The lower end wages for agricultural work, retail and food services that are common in these two counties lend themselves to higher poverty rates. These counties also carry the lowest median ages. Young people are typically still building wealth and stable finances, either starting school, a career or business development.
Some of the smaller rural counties scattered across the state do not have the housing inventory to attract new residents. Similarly, counties still developing broadband find it increasingly difficult to attract workers and residents. When more people move into an area, it increases demand for goods and services which in turn creates business opportunities and jobs, staving off poverty.
Generally, single-family home developers focus on larger homes that return a bigger return on investment—usually in larger population areas. In parts of Idaho, some residents prefer their area not grow — retaining the rural, small-town vibe, yet curtailing housing development.
Figure 3
A full list of poverty rates and rankings for Idaho’s counties is provided at the end of this blog.
National impact of the pandemic on poverty rates
Without exception, all states, D.C. and Puerto Rico experienced a decline in poverty rates from the prior five-year survey. This across-the-board decline demonstrates how a national event like a pandemic impacts our country’s movements as Idaho grew mightily during the COVID pandemic. Some people chose to move to another state for a better job while others were seeking to be closer to family. Some mobility was created by a desire for greater recreational opportunities or distance from crowds.
Nationally, the wage structure ratcheted up with high demand for products exacerbated by supply chain issues. This combo created some of the highest inflation or uptick in prices to hit U.S. consumers since the 1980s.
The pandemic assistance provided by two different administrations was a gamechanger for many citizens and included the following:
- The distribution of stimulus checks from the federal government directly to taxpayers.
- The Payroll Protection Program, a loan guarantee to small businesses and a plethora of entities such as non-profits, tribal businesses, U.S. veteran organizations, independent contractors and the self-employed.
- The expansion of the unemployment insurance program to allow those normally ineligible to receive benefits to cover bills and keep the economy afloat.
- Foreclosure and eviction moratoriums, allowing those in distress to use these funds to pay down other debt or reduce their work hours during the pandemic.
The pandemic was also the historic start of early retirements and a period of quits resulting in the Great Resignation, with many jobs available for those willing to pitch their skills and experience. During a period defined by front door deliveries, jobs supporting these services such as software developers and delivery drivers experienced widescale demand.
Methodology
The U.S. Census Bureau’s American Community Survey (ACS) determines poverty status by using an Official Poverty Measure to compare pre-tax cash income such as earnings, social security, pensions and disability benefits against a national poverty threshold adjusted by family composition and size. The thresholds are adjusted for inflation but not adjusted by geographies.
The ACS does not determine poverty on people living in group quarters such as prisons, dormitories, military quarters and nursing homes. It also does not determine poverty for the unhoused nor the children under 15 that are not living with their families such as foster children or children living with non-relatives or on their own.
More details can be found on the census website here.
Jan.Roeser@labor.idaho.gov, regional economist
Idaho Department of Labor
208-696-2172
Figure 4 – Poverty rankings of U.S. States, D.C. and Puerto Rico; 2014-2018 and 2019-2023 census survey results
Figure 5 – Poverty rankings of Idaho’s counties, 2014-2018 and 2019-2023 census survey results
This Idaho Department of Labor project is funded by the U.S. Department of Labor for SFY25 as part of the Workforce Information grant (40%) and state/nonfederal funds (60%) totaling $885,703.
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