US census report shows falling earnings, rise in uninsured

According to the report, real median earnings for both men and women who work full-time, year-round jobs declined by 1.1 and 1.2 percent, respectively. This was the third year in a row that earnings for full-time workers failed to keep up with the rate of inflation. According to the Economic Policy Institute, men’s earnings have fallen an average of 0.5 percent annually from 2000 to 2006, while those of women rose only 0.2 percent annually—and have actually fallen steadily since 2004.

The rise in the number of uninsured people—which many economists believe the census report underestimates—is particularly staggering. The number of people without health insurance rose from 44.8 million (15.3 percent of the population) in 2005 to 47 million (15.8 percent) in 2006, mainly due to job losses and cutbacks in employer-paid medical benefits.

The percentage of people with employer-paid benefits declined to 59.7 percent in 2006, down from 60.2 in 2005. The percentage of people receiving government-funded health insurance also dropped 0.3 percent points, to 27 percent. With employers cutting back health benefits, many families are being forced to drop their coverage rather than pay higher out-of-pocket expenses.