The number of Michigan residents who can’t afford basic needs such as housing, food, child care and more, is growing.

The Michigan Association of United Ways (MAUW) has released its 2019 ALICE Report, funded by the Consumers Energy Foundation, which shows that in 2017, 43 percent of Michigan households couldn’t afford basic needs. That’s up from 40 percent from the last data set that was released two years ago.

In Michigan, 14 percent of households live in poverty, while 29 percent are working, live above the federal poverty line (therefore are not eligible for benefits) and aren’t able to afford basic needs.

They’re considered asset limited, income constrained, employed (ALICE).

The report shares, “Despite overall improvement in employment and gains in median income, the economic recovery in Michigan has been uneven. Many ALICE households continue to face challenges from low wages, reduced work hours, depleted savings and increasing costs.”

Highlights from the data:

• While the number of Michigan households increased by 3 percent from 2010-2017, the number of ALICE households increased by 13 percent during that same time period.

• ALICE households are all over the state – in urban, suburban and rural areas. The report provides a visual snapshot of ALICE households statewide; counties vary from 30 to 61 percent of households living below the ALICE threshold.

• For a family of two adults, a preschooler and an infant, the average Michigan survival budget is more than $61,000 a year. This includes only basic needs such as housing, child care, taxes, technology, health care, food and transportation.

• The average cost of a Michigan family budget increased 27 percent from 2010 to 2017.

• 61 percent of all jobs in Michigan pay less than $20/hour.

• We’re seeing a growth in the gig economy, which includes freelance work, short-term work, etc. However, such jobs don’t always provide substantial, regular schedules and income that can cover the cost of living.

The report cites three trends which will impact ALICE households over the next decade: the changing American household, increasing market instability and health inequities.

• From millennials to our aging population, the report shares that there will be increased demands on our state’s infrastructure, particularly for affordable rental units.

• Of the jobs that are projected to be the fastest growing in the next 10 years, 65 percent pay less than $15/hour.

• The report details health inequities facing those with fewer resources who may live in areas with more pollution and reduced access to health care. The report shares that many ALICE households may be unable to afford copays when it comes to dental care.

The ALICE report does provide some next steps for consideration when it comes to finding policies and programs that can better support these Michiganders.

• Widening the Skills Gap: The report suggests increased access to high-quality early childhood and K-12 education can be achieved by leveraging strategies such as investment in teacher training and an intentional focus on low-income and English language learner students.

• Fewer Barriers to Employment: Child care costs, housing and transportation can all be barriers for those who are considered ALICE. The report recommends evidence-based solutions such as work programs that provide direct connections to employment that offer financial support with flexible scheduling for education and child care.

• Addressing Systemic Bias: The report shares, “Discriminatory practices have been embedded in our social structures and legal system, especially in terms of housing policies, immigration practices, voting rights, school funding and health care programs.”

This report calls for interconnected strategies that better support Michigan’s working households, which are still struggling.

Want more?

Read the full report.