New ALICE in the Crosscurrents: An Update on Financial Hardship Shows Wage Growth was No Match for Inflation
Though wages for the lowest paid jobs have risen across the country at the fastest rate in four decades, the number of households struggling to get by in New York grew by nearly 183,000 from 2021 to 2022. As a result, a total of over 3.5 million households or 46% were living paycheck to paycheck according to a new update from United Way of Long Island and its research partner United for ALICE.
That calculation includes the 62,927 Long Island households in poverty, as well as another 251,709 households defined as ALICE (Asset Limited, Income Constrained, Employed), earning above the Federal Poverty Level but less than what’s needed to survive in the current economy. “ALICE is someone we all recognize,” stated Theresa Regnante, President and CEO of United Way of Long Island. She continued, “ALICE represents the recent college graduate who can’t afford to live on their own, the young family burdened by high child care expenses, and the mid-career professional who is underemployed. These individuals are essential to the future economic health of our region, yet they encounter obstacles that hinder their path to financial stability.”
In the most recent Report released today, ALICE in the Crosscurrents: An Update on Financial Hardship in New York, shows that while wages were increasing, so too were costs. Regnante explains, “The ALICE Report offers data that explains why one third of Long Island’s families are struggling to get by and the difficulties they encounter in trying to make ends meet." For an ALICE family of four with an infant and a preschooler, the basic costs to live and work on Long Island, excluding tax credits, rose from $99,618 in 2021 to $116,700 a year later. Compounding the issue in 2022 was the loss of up to $15,000 in federal child tax credits and stimulus payments that this family had access to in 2021.
In 2022 the Federal Poverty Level for a family of four was $27,750. Regnante acknowledges, “Until now, the reality of families experiencing financial hardship has been understated and obscured by outdated poverty statistics,” said Theresa Regnante, United Way of Long Island president and CEO.
The findings in this one-year period are consistent with a more than decade-long trend: Since the end of the Great Recession, despite some ups and downs, the number of ALICE households in New York has been steadily growing.
“The data is showing persistent and widespread financial hardship — a red flag that the current system isn't working for ALICE,” said Stephanie Hoopes, Ph.D., United For ALICE National Director. “Current policy has not been enough to break down the barriers that trap ALICE households in financial hardship, from lack of access to housing and childcare that’s affordable, to inadequate community supports such as broadband internet."
2024 ALICE REPORT KEY FINDINGS
- 32.5% of Long Island households fall below the set income threshold needed to live and work, which equates to 132,283 households in Nassau County and 184,307 households in Suffolk County that are struggling to afford these basic needs.
- 316,590 households on Long Island have incomes below the ALICE threshold budget for survival.
- In Nassau County, the Household Survival Budget is $110,640 or $55.32/hour for a home with two adults with an infant and a preschooler.
- In Suffolk County, the Household Survival Budget is $122,760 or $61.38/hour for a home with two adults with an infant and a preschooler.
- 211 is a non-emergency call center 24/7/365 days of the year for households at or below ALICE (Asset Limited, Income Constrained, Employed) thresholds. It is the most efficient and convenient way for ALICE to find help with any needs among the day-to-day balancing of job, family, and financial obligations.
To contact 211 Long Island dial 2-1-1, or outside Nassau and Suffolk Counties 1-888-774-7633, or visit 211longisland.org. You can also text your zip code to 898-211.
To read ALICE in the Crosscurrents: An Update on Financial Hardship and access online, interactive dashboards that provide data on financial hardship on Long Island by county, visit www.unitedwayli.org/ALICE2024.
About United For ALICE
United For ALICE is a U.S. research organization driving innovation, research and action to improve life across the country for ALICE (Asset Limited, Income Constrained, Employed) and for all. Through the development of the ALICE measurements, a comprehensive, unbiased picture of financial hardship has emerged. Harnessing this data and research on the mismatch between low-paying jobs and the cost of survival, ALICE partners convene, advocate and collaborate on solutions that promote financial stability at local, state and national levels. This grassroots ALICE movement, led by United Way of Northern New Jersey, has spread to 31 states and includes United Ways, corporations, nonprofits and foundations in Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawai‘i, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, Washington, D.C., West Virginia and Wisconsin; we are United For ALICE. For more information, visit: UnitedForALICE.org.