Local poverty remains issue despite lower unemployment

Bloomington’s unemployment rate has dropped in the past year and is lower than the surrounding counties’, according to the most recent employment report the Indiana Department of Workforce Development released in November.

But that doesn’t mean unemployment and poverty aren’t still prevalent issues, particularly in Bloomington, one of the more economically depressed cities in the state, said Jennifer Osterholt, director of the Bloomington Housing Authority.

“What our mission is, is to provide safe and affordable housing to low-income families,” Osterholt said of Housing Authority. “We own and operate 310 units of affordable housing on three sites, and they serve the elderly disabled and families.”

The organization also helps families pay their rent if they can’t make the payments, with programs in place to help them reach the point where they can pay bills on their own.

Osterholt said, despite what the numbers say, she has actually seen an increase in families requesting help.

“What happens is once you’re helping a family, you’re signing a year contract,” Osterholt said. “We opened our waiting list for about two hours, and we had about 600 people standing in line.” 

When it comes to this seeming discrepancy, one factor that needs to be considered is the way unemployment is calculated.

Currently, the Indiana Department of Workforce Development reports the numbers it receives from the U.S. Department of Labor, said Valerie Kroeger of the department.

Although the unemployment rate for a state might be low, “employment” includes anyone surveyed during the U.S. Department of Labor unemployment survey who did any work at all, for any pay, ages 16 and older.

The plain unemployment rate does not account for how much money a family needs to survive or whether that employment is enough to keep it afloat.
Osterholt said this issue affects many Bloomington families.

“First of all, there are low wages. Extremely low wages,” she said. “And rents in Bloomington are relatively high because of the University. And that’s a double-edged sword. You get outside Monroe County, and where are the major places for employment? There’s that issue to deal with.”

More jobs also need to be created, Osterholt said.

“It’s an economic factor,” she said. “Until the state of Indiana or the government or whoever creates additional jobs, then folks don’t have jobs.”

Osterholt said unemployment and struggling families are still issues that face
Indiana.

The families that stood in line to get on the waiting list for help from the Housing Authority can attest to that.

“In many communities, you get on the waiting list, but you might be on the waiting list for five to 10 years,” she said. “Without work, folks have needs.”