While the state saw modest improvements in poverty and income levels, the data reveals persistent differences and growing concerns. Under-resourced communities continue to be disproportionately harmed by economic obstacles. In a state as wealthy as New Jersey, economic mobility is not a privilege — it’s a right everyone deserves.
Gender and Racial Disparities Persisted in 2024
Last month, the U.S. Census Bureau released new data offering insights into New Jersey residents’ economic security, confirming what many already know: poverty is not experienced equally. Women and communities of color continue to face high rates of poverty, highlighting the range of economic outcomes across the state.
According to the 2024 American Community Survey (ACS), New Jersey’s poverty rate stood at 9.2 percent in 2024.[i] It remains higher than the pre-recession level of 8.7 percent in 2008.[ii] Although lower than the national poverty rate of 12.1 percent and the prior year’s rate (9.7 percent), nearly 860,000 New Jersey residents lived below the Federal Poverty Level (FPL), the federal government’s official poverty measure.[iii] In 2024, the FPL was $25,820 for a family of three.[iv]
This threshold, however, does not adequately measure economic realities in high-cost states like New Jersey. Legal Services of New Jersey’s NJ True Poverty Tracker Report finds that a family of three needs an income closer to 300 percent of the FPL to afford basic necessities and live with dignity without making trade-offs between essentials.[v]
These topline figures fail to reflect the depth of economic disparity. Gender and racial differences persisted in 2024. Women experienced a poverty rate of 10.1 percent, compared to 8.2 percent for men.[vi] Black, American Indian and Alaska Native, and Latinx/Hispanic residents were nearly two to three times more likely to live in poverty than white (5.7 percent) and Asian (6.2 percent) residents.[vii]
Too Little Progress in Child Poverty Reduction
In 2024, 11.4 percent of children in New Jersey lived below the poverty level, a slight improvement from the previous year, yet still higher than the state’s overall poverty rate.[viii] This means children were disproportionately affected by economic insecurity. Because children rely on the financial stability of their caregivers, household poverty directly becomes child poverty. This effect intensifies in families with multiple dependents or single parents. When families struggle to afford housing, food, healthcare, and childcare, children often bear the brunt of those trade-offs.
More than 230,000 children lived in poverty.[ix] This number, a reflection of real lives, is unacceptable. Research shows that childhood poverty has long-term consequences, linked to harmful effects on educational attainment, health outcomes, and lifetime earnings.[x] Tracking child poverty is essential not only to understand the scope of economic inequality, but to ensure that policy prioritizes the well-being of the next generation. Every child deserves the opportunity to grow up with security, dignity, and access to opportunity.
These patterns in child poverty are deeply intertwined with broader patterns of household income. Families struggling to meet basic needs often do so on limited earnings, and income inequality across racial and ethnic lines continues to shape which children are most affected. While overall median household income rose to $104,294, not all New Jerseyans benefited from these gains equally.[xi]
Black, Latinx/Hispanic, and American Indian and Alaska Native families are still earning less than white and Asian families. These persistent income gaps help explain why child poverty remains disproportionately high in communities of color, despite the state’s economic growth.
New Jerseyans Share Outlooks on Economic Conditions
In the most recent U.S. Census Bureau Household Pulse Survey (HPS), which includes data collected between August 20 and September 16, 2024, one-third of respondents reported difficulty paying for usual household expenses and nearly four in five reported rising prices for goods and services.[xii]
The 2024 HPS estimates demonstrate that despite overall improvements in general economic indicators, many New Jerseyans were left behind or continue to face financial strain. Data collected also reveals a wide range of experiences across the state, further suggesting that economic conditions had not improved uniformly and many struggled to keep up with the burden of inflation and high cost of living.
Action Needed to Build an Economy for the Many
The latest Census data highlights the urgent need to strengthen New Jersey’s safety net for families facing economic insecurity. In 2024, the state raised its minimum wage to $15.13 per hour, and recipients of the NJ Child Tax Credit received larger refunds.[xiii] These measures offered meaningful relief and marked progress, but the gains remain modest and uneven. Working-class communities, in particular, continued to face disproportionate hardship.
To build an economy that works for everyone, New Jersey should strengthen policies that put cash directly into people’s hands. Building up existing supports, expanding proven programs, and exploring bold approaches (such as guaranteed income) can buffer families against future shocks.[xiv] With a potential recession on the horizon and federal rollbacks threatening core assistance programs, it’s more critical than ever to ensure New Jerseyans have the resources they need to thrive.
End Notes
[i] NJPP Analysis of Census Bureau – American Community Survey. Table S1701 ACS 1-Year Estimates 2024.
[ii] U.S. Census Bureau. American Community Survey, 2007 and 2008; and Puerto Rico Community Survey, 2007 and 2008.
[iii] NJPP Analysis of Census Bureau – American Community Survey. Table S1701, ACS 1-Year Estimates 2024 (United States); NJPP Analysis of Census Bureau – American Community Survey. Table S1701, ACS 1-Year Estimates 2023 (New Jersey); NJPP Analysis of Census Bureau – American Community Survey. Table S1701, ACS 1-Year Estimates 2024 (New Jersey).
[iv] U.S. Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation. 2024 Poverty Guidelines.
[v] Legal Services of New Jersey, Poverty Research Institute. New Jersey True Poverty Tracker: A Report on Populations Experiencing Deprivation in New Jersey. 2022.
[vi] NJPP Analysis of Census Bureau – American Community Survey. Table S1701, ACS 1-Year Estimates 2024.
[vii] Note that the margins of error for smaller populations, such as American Indian and Alaska Native, are higher and therefore, there is a larger possible variation. NJPP Analysis of Census Bureau – American Community Survey. Table S1701, ACS 1-Year Estimates 2024.
[viii] NJPP Analysis of Census Bureau – American Community Survey. Table S1701, ACS 1-Year Estimates 2024.
[ix] NJPP Analysis of Census Bureau – American Community Survey. Table S1701, ACS 1-Year Estimates 2024.
[x] New Jersey State Policy Lab at Rutgers University. Prevalence of Child Poverty in New Jersey. 2022.
[xi] Note that the margins of error for smaller populations, such as American Indian and Alaska Native, are higher and therefore, there is a larger possible variation. NJPP Analysis of Census Bureau – American Community Survey. Table S1903, ACS 1-Year Estimates 2024.
[xii] NJPP Analysis of Census Bureau – Household Pulse Survey Interactive Tool, “Difficulty Paying for Usual Household Expenses.” August 20th – September 16th, 2024; NJPP Analysis of Census Bureau – Household Pulse Survey Interactive Tool. “Price Increases for Goods and Services.” August 20th – September 16th, 2024.
[xiii] New Jersey Department of Labor & Workforce Development. New Jersey’s Minimum Wage Chart. 2020; New Jersey Treasury, Division of Taxation. Child Tax Credit. 2025.
[xiv] Chen, P. Freedom from Want: An Economic Guarantee for New Jersey’s Kids. New Jersey Policy Perspective. September 2025.
