This is welcome news, given the dire straits faced by food banks in the state. The problem is that even with a program like this supplementing the food collected and distributed by private groups is that it does not address the underlying problems that lead to food insecurity, hunger and poverty in the first place.
1. A loss of jobs in New Jersey and nationally
New Jersey lost 700 private-sector jobs in August, bringing the total number of job losses in the state to 14,600 for the year so far, according to data released by the New Jersey Department of Labor and Workforce Development two weeks ago.
“New Jersey’s employment picture continues to weaken, and with the ongoing crisis in the financial sector, we can expect more job losses in the near future,” said Philip Kirschner, president of the New Jersey Business and Industry Association.
This past July, the state’s unemployment rate rose to 5.9 percent, yet still remains below the national unemployment rate of 6.1 percent. Employment has gone down in the major sectors of the state’s private-sector economy, according to the report.
In the first eight months of 2008, the manufacturing sector lost 7,800 jobs, construction lost 3,100 and the service sector lost 3,800, according to the report. The only sectors, which experienced significant employment increases, were in the education and health services sector and the information sector, according to the data.
2. Unequal income growth
Economic growth in New Jersey over the past 20 years has not been broadly shared by the state’s residents because the wealthiest have seen their incomes rise at a much greater pace than anyone else. In other words, the income inequality gap in New Jersey continues to widen and in some respects at a faster rate than in most of the nation.
3. A minimum wage that has not kept up with inflation
When New Jersey raised its minimum wage to $6.15 in 2005 and $7.15 in 2006, the state took an important step in the right direction for hundreds of thousands of working families. But, despite this increase, the minimum wage has simply not kept up with the rising cost of living—especially given skyrocketing prices for food and energy. New Jersey depends on its front-line workers to drive the state’s economy and perform important functions for residents, yet they cannot make ends meet on today’s minimum wage.
The New Jersey Minimum Wage Advisory Commission recognized this problem in its December 2007 report on the adequacy of the state minimum wage. Had the Legislature adopted the Commission’s recommendation to raise the minimum wage to $8.25 an hour and establish automatic annual cost-of-living increases, New Jersey’s workers would have received much-needed relief as they struggle to support their families and build a future.
4. A frayed social safety net at the state and federal levels
5. A cost of living that is higher than low-wage workers can afford
Many families do not earn Self-Sufficiency Wages, particularly if they have recently entered (or re-entered) the workforce or live in high cost or low-wage areas. Such families cannot afford their housing and food and child care, much less other expenses and are forced to choose between basic needs.