ECONOMY & HOMELESS POPULATION IN US

Recent Economy & Homeless Population in United States

Recent Economy & Homeless Population in United States

In times of economic downturn, individuals may face new financial difficulties that can jeopardize their housing situations. In parts of the United States, following the economic problems of the fall of 2008, there were reports of a “surge” in homelessness.

Conversely, a region's housing situation can be strained by rapid economic growth. For example, in Alberta, a housing crisis became more severe with the growth of the province's economy. Between 2001 and 2007, record numbers of people moved to Alberta in search of economic opportunities, and the province's population grew by more than 10%. This increased demand for housing and led to dramatic rises in housing costs. As a result, many Albertans were unable to afford housing, even while working full-time, and the numbers of homeless and “nearly homeless” in the province grew. Fort McMurray saw a 24% increase in its homeless population between 2004 and 2006, while Calgary's homeless population grew by 18% between 2006 and 2008.

Economic restructuring can also increase the risk of homelessness for some people. US's labour markets have been responding to the globalization of competition and technological advances with a shift away from primary or manufacturing industries towards service provision, and from demand for unskilled workers to demand for skilled workers. A parallel trend has been the shift from full-time, year-round work to “non-standard” work, which includes part-time and temporary employment as well as self-employment.

This economic restructuring has had two consequences. First, those who lack the skills to meet the changing demands of the labour market may become unemployed or underemployed - a situation likely to increase family homelessness. Second, the changing economic system can increase the wage gap between high- and low-skilled labour, as well as between those with standard and non-standard work, which can deepen poverty at one end of the income spectrum while increasing affluence at the other. This exacerbates affordability challenges for those in low-income groups and influences the housing market, which focuses on the construction of “high-end” housing at the expense of affordable rental housing for low-wage earners.

In 2002, research showed that children and families were the largest growing segment of the homeless in America, and this has presented new challenges, especially in services, to agencies. Back in the 1990s, a teenager from New York, Liz Murray, was homeless at fifteen years old, and overcame that and went on to study at Harvard University. Her story was made into an Emmy-winning film in 2003, "Homeless to Harvard: The Liz Murray Story".

The Interagency Council on Homelessness (ICH), the federal branch responsible for overseeing homeless policy that was created under the McKinney-Vento Act, is now attempting a new approach to combat homelessness. For the first time, government officials are calling for an end to homelessness. To accomplish this goal ICH has adopted a strategy largely devised by the National Alliance to End Homelessness (one of many homeless advocacy organizations), which centers on the production and ...