Poverty in Savannah

Savannah is a beautiful city in a favorable climate. Residents enjoy, by many measures, an above average quality of life with access to cultural, historic and natural attractions. The economy is diversified and has weathered a decline in the manufacturing sector by expansion in the port facilities, the transportation sector, technical and creative business, financial services, leisure and hospitality, and healthcare. However, the following economic problems persist:

The rate of poverty is not declining

From the decennial census report of 1980 through 2000, the percentage of persons in poverty in Savannah has declined modestly from 22.4% to 21.8%. In Georgia, rates dropped from 16.6% to 13%. The rate of decline for the entire state is six times greater than that of the city of Savannah. Chatham County, including, the city declined 18.4% to 15.6%.

Poverty is disproportionate by race

African Americans experience a far higher rate of poverty than do whites in relationship to their representation in the population. Ideally, the composition of the population experiencing poverty would mirror roughly the composition of the population at large. In Savannah, that would mean about 60% of the persons in poverty would be African American. African American and Latino children are 5 times more likely to live in poverty in Chatham County than white or Asian children. Of all persons in poverty in Chatham County in 1999, 41% were children under the age of 18; nationally 37% of persons in poverty are children.

Disparities between rich and poor are growing

Household incomes in both the state of Georgia and the nation are distributed fairly evenly across with a noticeable dip in the middle range of $35,000 to $50,000 per year, which represents only 16% of households. The Chatham County data indicates 25% of the population in the lowest income range, 16 % in the middle, and 20% of households with income over $75,000. Savannah, however, has nearly 35% of its households earning less than $20,000 per year and only 13% of households over $75,000. The apparent weakness in the middle is as disturbing as the percentage of low-income families.

Poverty is high, wages are low

The percentage of persons in Savannah in poverty is higher than that of the county, state or nation. While Savannah?s economy has remained diverse and grown, the number one occupation for annual openings in the Coastal Region according to the Georgia Department of Labor is food preparation, serving and related occupations. The average weekly wage for these occupations is also among the lowest at $252/week.

The steady and long term growth in employment has not resulted in a growth in incomes since these are low-wage jobs and pay below what is needed to support an individual, let alone a family. Of Savannah?s 122,489 individuals in the labor force, 18% (21,480) earn less than a self-supporting wage even at full time employment. Overall the 2002 average weekly wage for employees in Chatham County of $598 is 13% lower than the state average of $687.

Female heads of household

In addition to the disproportionate impact of poverty by race, households headed by single women also lag in income improvement. In the 2000 census, households headed by single women increased from 68% to 75% of all households in poverty in Savannah.

Educational attainment is low

While steady progress has been made in increasing the proportion of the labor force with at least a high school diploma, 21% of Chatham County?s workforce in 2000 had not completed high school. According to a 2002 US Census report, the 20.7% of Savannah residents without a high school diploma can expect to earn $1.1 million less in lifetime earnings than the 14.2% of Savannah residents with bachelor?s degrees. The estimated lifetime earnings of an individual with a high school diploma are nearly $1 million less than an individual with a bachelor?s degree. Even having an associate?s degree increases earnings by about $400,000 over that of a high school graduate.