Low-Wage Jobs, Inability to Save and Build Wealth Leave Huge Numbers of Mississippians in Economic Limbo

Washington, D.C. – Despite an unemployment rate that has ticked downward and an overall improved economy, large numbers of Mississippi families continue to struggle in low-wage jobs that don’t allow them to save for a more prosperous future, according to a new report from Prosperity Now (formerly the Corporation for Enterprise Development).

Fully 53.4% of Mississippi households are liquid asset poor, meaning they have so little savings that they could not live at the poverty level for just three months if they lose a job or suffer another significant income loss, according to the 2017 Prosperity Now Scorecard (formerly the Assets & Opportunity Scorecard).

A new Scorecard measure also shows that while 49.4% of households in the state did not set aside any savings for emergencies in the past year, the number is higher than the national rate of 43.7%.

Even as employment has increased, the poor quality of many jobs makes it challenging for families to meet basic expenses—and nearly impossible to save enough to move up the economic ladder. Over a third (36.9%) of Mississippi jobs are in in low-wage occupations, many of which do not provide workers with a reliable stream of income. The Scorecard found that 24.3% of Mississippians experienced income volatility from month to month in the past year, which studies show most often results from irregular job schedules.

Mississippi households of color face even greater obstacles. They are more than twice as likely to live below the poverty line as white households (33.2% compared to 13.0%) and much less likely to own a home or other assets that boost long-term financial stability. Over half of households of color (53.2%) in the state own homes, compared to 76.5% of white, non-Hispanic households.

“Beyond providing a cushion to get families through emergencies, increased savings and wealth allow families to invest in their futures and gain ground for future generations,” said Andrea Levere, president of Prosperity Now. “It’s clear that far too many people are stuck in economic limbo. They may be getting by, but they aren’t getting ahead.”