Hawaii has the 5th lowest poverty rate in the nation at 9.0%. This puts its poverty rate slightly lower than Connecticut and slightly higher than Vermont.
But where is the poverty in Hawaii, and why is it occurring?
The poverty rates in Hawaii are highest in two of its eight major cities. These cities are Hilo and Waipahu, and the poverty rates in these cities are actually at critical levels (50% or more above the state average).
All of the counties in Hawaii have poverty rates near the state average, though Hawaii County (the big island) has the highest with a 10.8% poverty rate.
Kalawao County is the only county in the United States with a reported 0.0% poverty rate, but it only has a population of about 120 people.
Also, though the poverty rates are highest in Hilo and Waipahu, the most people living in poverty live in Honolulu due to its much higher population. Honolulu has an 11.8% poverty rate.
In Hawaii, the cost of living is extremely high compared to other states. In major cities, people are completely reliant on the market for all of their basic needs such as water, food, electricity, shelter, higher education, health care, and insurance.
Since almost all of the poverty in Hawaii is occurring in major cities, it becomes apparent that for some people, this high cost of living is simply too high.
If the working wages in a major city are not sufficient to pay for all of a person’s most basic needs, then pockets of poverty will develop in the city. The highly tourist-industry driven economy of Hawaii leads to an unusually high percentage of very low-wage jobs.
The inability for people in these areas to save up assets also makes them more vulnerable to poverty if events such as health crises, divorce with children involved, caring for elderly parents, or automobile accidents occur.
All of this aside, it is important to keep in mind that the reasons for poverty are as unique as the individuals who live through it. Though finding trends in a specific area is important, no generalization can account for everyone.
Since almost all of the poverty in Hawaii occurs in urban areas, the organizations that seem to have the most impact are national organizations. Because it is easy to reach out to a large number of people in poverty when they live in an urban area, these big organizations can help more easily than they could for the poor in rural areas.
Some of the big organizations that are helping eliminate poverty in Hawaii include Meals on Wheels, United Way, the YWCA and YMCA, and Habitat for Humanity.
Also working to eliminate poverty in urban areas are national legislators who worked for a higher minimum wage.
With a higher minimum wage, the working poor in urban areas like Hilo, Waipahu and Honolulu will be better able to afford the high cost of living that comes with life in Hawaii.
United States Census Bureau