KALAMAZOO, Mich. (WOOD) — The amount of Michigan residents who are above the poverty line but are struggling financially is growing, a new report found.
The report, released on May 22 by Michigan Association of United Ways in partnership with United For ALICE, Consumers Energy Foundation and local United Ways throughout the state, works to capture a snapshot of how economic conditions are impacting individual people using data from 2022.
It goes beyond looking at only those living below the poverty rate, also looking at households who are ALICE: Asset Limited, Income Constrained, Employed. These are people who are working hard to make ends meet and are still struggling financially, but typically don’t qualify for local, state or federal assistance.
“These are individuals across our communities that are working sometimes two, three jobs,” Natalie O’Hagan, senior director of strategy and culture for United Way of South Central Michigan, explained. “They’re living paycheck to paycheck, so they’re under some pretty strong financial constraints.”
They aren’t thriving, they’re in survival mode.
The amount of Michigan households living under the poverty line has remained steady at around 13%, according to the report. The number of ALICE households living above the poverty line increased by close to 89,000 from 2021 to 2022, now representing 28% of Michigan households.
In total, 41% of Michigan households — close to 1.7 million — are below the ALICE threshold, meaning they’re either an ALICE household or below poverty line.
Many ALICE households are working important jobs, O’Hagan said, adding that the worker at your kid’s day care may be considered ALICE. The report found that 49% of fast food, counter workers and cooks are below the ALICE threshold, as are 47% of cashiers and 46% of waiters and waitresses.
In health care, 52% of personal care aides are living below the ALICE threshold — a recent report from the Michigan Health Council expects a shortage of more than 170,000 openings for home health and personal care aides within the next decade — as are 41% of nursing assistants.
“These are really hardworking individuals,” O’Hagan said. “But because of a lot of different factors, they’re really struggling.”
The report looks at the cost of living and a typical budget, factoring in the cost of things like housing, transportation, food and child care. The state’s housing crisis and childcare crisis are very prevalent, she explained, as families are struggling to find safe, affordable childcare and available, affordable housing.
Wages simply aren’t keeping up with the cost of living, she said.
“Things cost more. Right now you go to the grocery store, groceries are more expensive, that resonates for everybody,” she said.
In United Way of South Central Michigan’s region, which includes Kalamazoo County and Calhoun County, a family of four would need to be making a full-time hourly wage of $37.97, or $6,329 every month, to cover its basic needs, the report said. A single adult would need to make a full-time hourly wage of $14.27.
O’Hagan said the data varies from county to county. For example, 38% of Kalamazoo County households are living below the ALICE threshold, compared to 44% in Calhoun County.
But when broken down by populations and demographics, the numbers tell a similar story, she said.
She explained that households with the highest rates below the ALICE threshold are those who headed by someone who is Black, Indigenous or a person of color (BIPOC); a single female with children; someone who is 25 years or younger; someone who is 65 years or older.
The single demographic with the highest rate are households with kids headed by a single woman, she said. In the state, 73% of all households with a single female and kids are either in poverty or are ALICE.
In Kalamazoo County, that number is also 73%, and in Calhoun County, that number is 78%.
“That’s alarming,” O’Hagan said.
That means that out of 10 single mothers or other single females with kids, seven or eight are either experiencing poverty or are struggling financially, she said.
“For us as a local United Way, a local funder, a local service provider that tells us that we really need to focus resources and attention on that group,” she said.
United Way and its partners, from nonprofits and community advocates to local municipalities and public sector organizations, can use the data to continue to work toward solutions, O’Hagan said. She explained that United Way tailors its programs for different communities, as the solution in a rural community would be very different than the solution for an urban community.
The data tells them what they’re doing well and what needs to be adjust. O’Hagan said an important aspect is using it for advocacy.
“The data told us is that with the pandemic, we increased financial assistance through amazing programs and subsidies,” she explained. “When those went away, we’re now seeing the effects of that, we’re seeing shrinking opportunities for our families. So we do need to continue to advocate for those resources in our local communities.”
O’Hagan also said local elected officials can use the report to inform policy.
United Way also hopes to use the report to raise awareness and to put a face to the issue. O’Hagan said she herself at one point was ALICE, and she interacts with people who are considered ALICE every day.
“It is so important for us to just talk about it, and talk about it in a way that brings humanity back into the conversation,” she said. “This should be a way for us to imagine a future where our families are not only surviving, but they’re thriving.”
