One in seven Americans now live on or below the poverty line, according to figures published by the US Census Bureau. It is the sharpest annual rise for three decades, and analysts predicted next year's figures will be even worse.
According to the bureau, 43.6 million people or 14.3% of the population were in poverty in 2009, up from 39.8 million in 2008. This is the third consecutive annual rise. The hardest-hit are African-Americans and Hispanics.
One of the alarming statistics in the Census Bureau report showed the number without health insurance rose from 46.3 million in 2008 to 50.7 million in 2009.
Even before the recession, incomes for working-class people had been stagnant and the numbers in poverty unacceptably high.
In response Obama said "Today's numbers make it clear that our work is just beginning. Our task now is to continue working together to improve our schools, build the skills of our workers, and invest in our nation's critical infrastructure."