SEATTLE, WA – The latest U.S. Census data shows Washington’s poverty rate declined slightly overall, but the wage gap continues to grow, leaving experts concerned about rising inequality in the state.

Research finds that pay gains have slowed rapidly for the lowest-income earners across the country, with the top quarter of earners now making more than 5 times as much as the lowest earners.

While the poverty rate in Washington decreased slightly between 2023 and 2024, Annie Kucklick, policy and research associate with the Economic Opportunity Institute, said it does not overshadow the larger trend of income inequality in the state.

“We see that the lowest 20% of income earners in Washington take home only 3% of aggregate income, while the top 5% are taking home 22%,” said Kucklick. “And that has grown pretty significantly over the last 20 years or so.”

Kucklick explained that census data, based on the federal poverty definition, does not always accurately reflect how Washington families are doing.

She said the Self-Sufficiency Standard, developed by the University of Washington, is more accurate because it takes into account what families need to meet their basic needs in their area, including food, healthcare, childcare and transportation.

Using the Self Sufficiency Standard, Kucklick said, paints a grim picture for the state. That data shows nearly 30% of Washington households overall are not able to meet their basic needs, with people of color facing disproportionate impacts.

“We found that 45% of Black households in Washington state are not able to meet basic needs,” said Kucklick. “Fourty-five percent of Hispanic households, and 44% of Indigenous households.”

It is essential to have an accurate understanding of the challenges facing the state, said Kucklick, so people know how to start addressing them. She says looking to the market to ensure people are paid fairly has not worked, and advocates for progressive taxation to redistribute wealth.