Oakland County Unemployment Rates and the Effects on Children

Kids Count in Michigan shows that in Oakland County the unemployment rate quadrupled between 2000 and 2010 - one of four counties in the state with this startling statistic.

The impact of Oakland County's long economic struggle on young children is reflected in the newly released Kids Count in Michigan Data Book 2011. The report ranks counties on 16 indicators of child well-being. Trends over time are available for 15 indicators, with Oakland County showing seven indicators improving and eight worsening.

The Kids Count in Michigan Project released the report. It is a collaboration between the Michigan League for Human Services, which researches and writes the report, and Michigan's Children, which works with advocates statewide to disseminate the findings in the report. Both organizations are non-partisan, non-profit advocacy groups concerned with the well being of children and their families.

As Oakland County's unemployment rates quadrupled, we find many more children living in economically insecure families. This year's report shows that children living in poverty in Oakland County increased by 48% between 2005 and 2009. In addition, the number of students received free/reduced price school lunches also increased by 49% in the same timeframe. 

Poverty reflects not only material hardship but also the emotional stress of coping with continuing financial instability. Children in low-income families also often suffer from multiple disadvantages such as living in inadequate housing in unsafe neighborhoods, in locations compromised by environmental hazards; attending low-quality schools and enjoying little access to parks and other recreational opportunities. Not surprisingly, investigations of child abuse and neglect escalated over the decade as did the rate of confirmed child victims. In fact, in Oakland County, the rate of confirmed victims rose 39 from 2000 to 2010.

Poverty among young children is of particular concern because research shows that the impact is more profound and long lasting when experiences at this critical period of development. Negative effects from poverty which have been documented include nutritional deficiencies in pregnant women and babies born at low birth weight (less than five and ½ pounds); compromised brain development and immune functioning in young children; and behavioral problems in school. 

"The findings show that children across Michigan are still suffering the fallout from our long recession,'' said Jane Zehnder-Merrell, the Kids Count in Michigan director at the Michigan League for Human Services. "Poverty in Michigan is as big a threat to our children today as polio was to a previous generation. Fortunately, we can do something about this. We know that public policy can improve children's social and economic environment."

The drastically increasing share of children in Oakland County families with income below the poverty level should raise major alarms. Not unrelated are public policy decisions which restrict access to programs that assist families to provide for their basic needs during economic downturns.

Recent policy decisions that negatively impact children include:

• Cutting the Michigan Earned Income Tax Credit from 20 percent of the federal credit to 6 percent. The credit has been responsible for pushing 14,000 Michigan kids out of poverty.
• Placing stricter time limits on cash assistance for 12,000 families living in poverty, including nearly 30,000 children.
• Asset limits on food assistance that will impact the newly unemployed and divert needed federal aid from Michigan.
• Reducing the traditional period of unemployment from 26 to 20 weeks. The tough labor market means half of jobless workers search six months or longer before finding employment.

"The impact of high unemployment and declining wages is leaving its mark on a generation of children,'' Zehnder-Merrell said. "Unfortunately, policymakers have cut family supports aimed at blunting the impact of the economic downturn on kids."

We must do better by Oakland County children. One way to help low-income working families is to restore the Michigan Earned Income Tax Credit. In Oakland County, 61,657 workers this year are expected to receive the credit, bringing $22,541,475 into Oakland County. Next year, the credit will be slashed by 70 percent unless policymakers act to restore it."

The Great Start Collaborative-Oakland is committed to ensuring that all of Oakland County's youngest citizens and their families have access to services. Visit their website to find out about some of the resources available to families with children 0-5. Sign up to receive their e-newsletter to stay up to date on what is happening in Oakland County. Save the date to join Great Start Collaborative-Oakland on May 16, 2012 as they travel to Lansing for Star Power, an event where men, women and children from across Michigan come to talk with their legislators about the importance of investing in early childhood.

This press release was submitted to Oakland County Moms via Great Start Collaborative-Oakland. Click here to learn more about Great Start Collaborative-Oakland.

About the Kids Count in Michigan project
The Kids Count in Michigan project is part of a broad national effort to improve conditions for children and their families. Funding for the project is provided by The Annie E. Casey Foundation, The Detroit-based Skillman Foundation, Blue Cross Blue Shield of Michigan Foundation and local United Ways.

The annual data book is available from the Michigan League for Human Services and on the web at http://www.milhs.org/. More state and local data are available at the Kids Count Data Center, datacenter.kidscount.org.

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