New National Survey: Poor Economic Conditions Hampering Community Improvement

ST. LOUIS – A new national survey of organizations serving low- to moderate-income communities indicates poor economic conditions led by lack of affordable housing and personal finance difficulties.

Respondents to The Community Perspectives Survey: Insights from the Field gave slightly more positive ratings on employment and education conditions, driven by the ability to find work and uptake of adult education programs.

“While the survey did not specifically ask about uncertainty, it was a broad theme raised by respondents in open ended questions that was affecting communities, businesses and entities negatively,” said report coauthor Nishesh Chalise, senior manager of community development at the Federal Reserve Bank of St. Louis.

The survey of 440 representatives of organizations serving low- to moderate-income communities was conducted in April and May by the Federal Reserve. 

The main findings include:

• Economic Mobility: Almost 60% of respondents noted conditions were having a downward effect on economic mobility at the time of the survey, and almost 70% expect conditions to worsen over the next year due to challenges such as housing but also expectations around increasing demand for services with continued funding uncertainty for service providers.

   

• Employment: Respondents reported labor market conditions were better than other sectors; however, slightly more than half expect unemployment to worsen over the next year.

   

• Housing: Conditions for housing were rated among the worst in the areas addressed in the survey, and few respondents expect any improvement in housing conditions over the coming year.

   

• Personal Finance: Low- to moderate-income (LMI) populations were largely seen as having poor financial stability at the time of the survey, and most respondents do not expect that to improve, mostly due to income not keeping up with the cost of living and debt.

   

• Small Business: Overall, respondents said conditions for small business were poor, with nearly two-thirds expecting the conditions to worsen in the coming year primarily driven by rising operational costs.

   

• Health: Most survey respondents rated public health conditions as poor, while slightly more than 40% rated access to health care as poor, with insurance coverage and mental health needs as the main challenges. Less than 20% of respondents expect health care conditions and access to improve.
  

   

• Education: Around 45% of respondents noted poor conditions for both pre-K to 12th-grade and adult education. However, a much larger share of respondents expect improvement in adult education than in pre-K to 12^th grade, driven by participation in training programs and employer partnerships.

   

• Human Services and Emergency Assistance: Over half of respondents noted conditions were poor, with nearly 80% expecting conditions to worsen over the next year. Overall economic conditions and funding were mentioned as negative factors.

   

• Digital Skills and Internet and Technology Access: Over half of the respondents said internet access was poor. A quarter reported improvements compared to last year, and they expect it to continue improving over the next year. There was concern regarding over-reliance on cell phones, which could hinder development of digital skills.

To read more in-depth results of the survey, visit this link.

About Federal Reserve Community Development  

The Federal Reserve seeks to promote the economic resilience and mobility of individuals and communities throughout the U.S., including low- and moderate-income and underserved households. Increasing economic opportunity is not only good for individuals and communities but also vital to the overall economy.