Approximately 3.5 million Americans were able to ascend above the poverty line in 2015, suggesting employers are finally creating more jobs and paying higher wages, according to a New York Times report on recently released census data.
"It all came together at the same time," said Diane Swonk, an independent business economist in Chicago, according to The New York Times. "Lots of employment and wages gains, particularly in the lowest-paying end of the jobs spectrum, combined with minimum-wage increases that started to hit some very large population areas."
While the rate of poverty declined across all demographics, blacks and Hispanics — who account for more than 45 percent of people with annual incomes of less than $24,300 for a family of four — experienced the highest improvement, according to the report.
About 43 million Americans — 14 million of whom are children — are classified as poor, while millions of others still worry about financial security. However, the Census Bureau found that 2015 was the first year since the recession that the poverty rate dropped significantly (by 1.2 percentage points) since the economic recession of 2008.
Social Security, food stamps and tax credits, among other government programs, have helped prevent tens of millions of people from falling below the poverty line year after year.
Overall, there were 2.9 million new jobs created between 2014 and 2015. Many part-time workers were able to increase their hours, and wages increased (after being adjusted for inflation), according to the report.