LANSING, Mich. (Michigan News Source) – A new report coming out of the Michigan Association of United Ways (MAUW) with research from partner United for ALICE (Asset Limited, Income Constrained, Employed) shows that almost four in ten Michigan households were unable to afford the basics between 2019 and 2021, which encompasses the timeframe of the pandemic and the start of the inflationary period after Joe Biden became president.

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A total of nearly 1.6 million Michigan households (39%) were listed as in poverty or earning above the Federal Poverty Level but had less than what’s needed to survive in the modern economy. That was an increase of more than 62,000 households.

The 1.6 million number includes 525,754 Michigan households in poverty and another 1,044,970 families defined as ALICE. The press release sent out by MAUW and ALICE says that “ALICE families have been overlooked and undercounted by traditional poverty measures” and that ALICE includes workers like the home health aides, childcare workers and cashiers that were still working during the pandemic – those working low-wage jobs, with little or no savings and one emergency from poverty.

The report titled “ALICE in the Crosscurrents: COVID and Financial Hardship in Michigan” shows that the total number of financially insecure households rose by four percent between 2019 and 2021 – double the two percent increase in the state’s overall population. The number of ALICE households increased by two percent during this time. Additionally, the report shows that Michigan ranked 22nd in financial hardship among all 50 states, with one of the nation’s higher percentages of households struggling to make ends meet in 2021.

The report says that job disruptions and inflation delivered significant financial pain, but that a combination of pandemic supports and rising wages did help to blunt what could have been a deeper financial crisis.

MAUW CEO Hassan Hammoud says, “These hardships, including access to food, healthcare and education for ALICE families was often hidden in plain sight until the pandemic. Equipped with the ALICE name and data, we can do even better to develop effective policies and track our progress toward reducing financial hardship in Michigan. We have an opportunity to build on what was learned during the pandemic as ALICE continues to face economic uncertainty.”

According to the report, for a family of four with an infant and a preschooler, the annual ALICE Household Survival Budget, which is the basic cost needed to live and work in Michigan, was $72,792 in 2021. The Child Tax Credit and Child Dependent Care Tax Credit helped to soften the blow, bringing the family Survival Budget down to $59,016.

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Kim Trent, Deputy Director of Prosperity at the Michigan Department of Labor and Economic Opportunity (LEO) says, “To ensure every Michigander has access to economic opportunity and prosperity, we are using the latest data from the ALICE report and working with partners across the state to deliver real solutions that make sure people in our state aren’t struggling to put food on the table or make ends meet for their family. LEO and the Michigan Poverty Task Force will continue to focus on efforts that lift Michiganders out of poverty and above the ALICE threshold.”

Insights in the report include the persistence of racial disparities with 59% of Black and 44% of Hispanic households falling below the ALICE Threshold in 2021, compared to 36% of white households. The report also found that single-female-headed households had among the highest rates of hardship. Well over half, or 71%,of Michigan’s single-female-headed households could not afford basics in 2021. Hourly wages were an issue too. In 2021, 70% of the 20 most common jobs in Michigan paid less than $20 per hour.