Caseloads in the United States declined about 60 percent between 1994 and 2004. According to the Brookings Institution, the percentage of children on welfare has reached a low that has not been seen since 1970. Since 1996, states have conducted more than 40 studies, the results of which indicate that 60 percent of people leaving welfare are employed.
Between 1993 and 2000, the Census Bureau reported that the percentage of low-income single mothers, who held jobs, rose from 58 percent to 75 percent. At the same time, employment among the least-educated, never-married mothers swelled from 44 percent to 66 percent. The statistics indicate that fewer people are on welfare and more people are working due to unprecedented changes brought about by welfare reform.
Irene Lurie and colleagues at the State University of New York have performed observational research on welfare case workers, noting that these workers follow through on state policies. They urge clients to participate in job-related activities and disparage reliance on welfare
Census Bureau data indicate that 30 percent of the income of mother-headed, low-income families came from earnings in 1993, according to the Brookings Institution. Welfare payments accounted for most of the remaining 55 percent. The pattern flipped by 2000. Fifty-seven percent of income was derived from earnings while income from welfare decreased to 23 percent. During the same period, the total income of low-income families jumped by 25 percent.
In the 1990s, there were other factors that contributed to the increase in income, such as a strong economy and a plethora of social programs tailored to help low-income working families. However, federal welfare policy that required employment and yet gave states the leeway to design job-related programs delivered better results than previous welfare policies.
Child poverty declined every year between 1994 and 2000, reaching levels last seen in 1978. In 2000, the poverty rate of African-American children was at an all-time low.