2012 mfip relationship to unemployment

Welfare Research Briefs The Relationship between MFIP Caseload and the Unemployment Rate Since the statewide implementation of the Minnesota Family Investment Program (MFIP) in 1998, the number of eligible adults has decreased by 25% from almost 40,000 to just over 30,000 at the beginning of 2011. While the overall decrease in the MFIP caseload has been dramatic, it has risen for extended periods twice during its history. Both periods of caseload growth were associated with large increases in the number of unemployed Minnesotans. In August 1998, 62,000 Minnesotans were unemployed. By January of 2004, that number had increased by 169% to 167,000. Initially, even as the number of unemployed grew, the MFIP caseload continued to decline. Eventually, as the economy continued to worsen, the number of MFIP cases began to grow. Nevertheless, between 1998 and 2004, the MFIP caseload saw a net decrease of 6%. When the number of unemployed began to decline in 2004, the MFIP caseload also declined through 2006 after which the economy again began to weaken. From the beginning of the current recession in 2007 through the end of 2010, the number of unemployed Minnesotans increased by 91%, while the MFIP caseload grew by 19%. Overall, the MFIP caseload is declining. On its downward path, it nevertheless responds to downturns in the economy by providing assistance to more Minnesotans when the number of unemployed Minnesotans grows. Unemployment data are from Minnesota’s Department of Employment and Economic Development at http://www.positivelyminnesota.com/ For more information on the Minnesota family assistance programs, see the annual reports MFIP and DWP: Characteristics of December Cases and Eligible Adults at www.dhs.state.mn.us (Economic Supports/MFIP/Reports). 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 0 50,000 100,000 150,000 200,000 250,000 300,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 MFIP/DWP Cases Number Unemployed MFIP/DWP Caseload and the Number of Unemployed Minnesotans 1998 through 2010 Number Unemployed MFIP/DWP Cases April 2011

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The State of Minnesota's research on falling welfare caseloads and increased unemployment.

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Page 1: 2012 MFIP Relationship to Unemployment

Wel

fare

Res

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The Relationship between MFIP Caseload and the Unemployment Rate

Since the statewide implementation of the Minnesota Family Investment Program (MFIP) in 1998,

the number of eligible adults has decreased by 25% from almost 40,000 to just over 30,000 at the

beginning of 2011.

While the overall decrease in the MFIP caseload has been dramatic, it has risen for extended periods

twice during its history. Both periods of caseload growth were associated with large increases in the

number of unemployed Minnesotans.

In August 1998, 62,000 Minnesotans were unemployed. By January of 2004, that number had

increased by 169% to 167,000. Initially, even as the number of unemployed grew, the MFIP caseload

continued to decline. Eventually, as the economy continued to worsen, the number of MFIP cases

began to grow. Nevertheless, between 1998 and 2004, the MFIP caseload saw a net decrease of 6%.

When the number of unemployed began to decline in 2004, the MFIP caseload also declined through

2006 after which the economy again began to weaken. From the beginning of the current recession

in 2007 through the end of 2010, the number of unemployed Minnesotans increased by 91%, while

the MFIP caseload grew by 19%.

Overall, the MFIP caseload is declining. On its downward path, it nevertheless responds to

downturns in the economy by providing assistance to more Minnesotans when the number of

unemployed Minnesotans grows.

Unemployment data are from Minnesota’s Department of Employment and Economic Development at http://www.positivelyminnesota.com/ For more information on the Minnesota family assistance programs, see the annual reports MFIP and DWP: Characteristics of December Cases and Eligible Adults at www.dhs.state.mn.us (Economic Supports/MFIP/Reports).

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