Minimal wage jobs will not allow the nearly 400,000 welfare recipients who are now expected to work to escape poverty. Even if they all find employment, many low wage workers who work steadily at one or more full-time jobs never earn enough to provide their families with more than a bare bones existence. Three federal and state programs that channel income support to the working poor address this issue.
Unemployment compensation provides a safety net for job losers in search of new employment.
Alone, none of these programs can do the job of lifting wage earners and their families out of poverty. But together they can give a real boost to the working poor. As welfare reform pushes recipients into the labor market, the pressure will depress the wages of less-skilled workers. Unlike benefits such as Social Security, the minimum wage is not automatically adjusted to jumps in the cost of living. At best, this is a shaky financial base.