US families turn to food stamps as wages drop (40% of current recipients report "earned income")

[Amerigo Vespucci]

US families turn to food stamps as wages drop

http://www.ft.com/cms/s/0/c1e698a2-9984-11de-ab8c-00144feabdc0.html

By Sarah O’Connor in Washington

Published: September 4 2009 20:10 | Last updated: September 4 2009 20:47

The number of working Americans turning to free government food stamps has surged as their hours and wages erode, in a stark sign that the recession is inflicting pain on the employed as well as the newly jobless.

While the increase in take-up is often attributed to the sharp rise in unemployment – which on Friday hit 9.7 per cent – the Financial Times has learnt that some 40 per cent of the families now on food stamps have “earned income”, up from 25 per cent two years ago.

The agriculture department, which runs the programme, attributes this rise to workers having their hours cut back.

“I’m sort of stunned, it seems like a dire warning . . . that even the jobs people are retaining in this recession aren’t at the wage level and hours level that they need to provide for their families,” said Heidi Shierholz, economist at the Economic Policy Institute.