LANSING, Mich. (Michigan News Source) — The latest Asset Limited, Income Constrained, Employed report (ALICE) reveals that an estimated 41% of Michigan households struggle to meet basic expenses, only slightly better than the national average of 42%.
Despite wage increases, “inflation and the loss of pandemic supports” have converged to create an economic vise that squeezes families tighter each month, according to Kaitlynn Lamie, CEO of the Michigan Association of United Ways. This pervasive financial strain is quietly reshaping communities across the state, one paycheck at a time.
MORE NEWS: Grand Haven Man Sentenced in Meijer mPerks Scandal
The ALICE report annually calculates the income needed in each American county to cover basic expenses such as housing, food, transportation, child care, health care, technology, and taxes for different types of households.
Specifically, the analysis identifies the number of households unable to afford a “survival budget” based on the local cost of living, using data from 2022. The report provides calculations for each Michigan city and township, showing the percentage of households with incomes at or below the ALICE threshold. ALICE households have incomes that exceed the federal poverty level but fall short of the basic cost of living in their region.
The report highlights significant disparities across the state. In 11 counties, including Wayne County, more than half of households are financially strapped. For instance, in Wayne County alone, 52% of households fall under the ALICE threshold.
Certain communities are facing even more severe economic challenges. Cities like River Rouge (79%), Benton Harbor (78%), and Highland Park (76%) have the highest percentages of households living at or below the ALICE threshold. These figures suggest that a large segment of the population is one financial emergency away from crisis.
Conversely, some areas are faring much better. In Huntington Woods (Oakland County), only 9% of households are at or below the ALICE threshold, followed by East Grand Rapids (Kent County) at 10% and Ada Township (Kent County) at 11%.
The ALICE report also paints a detailed picture of the cost of living in Michigan. It shows that while wages have been rising, they have not kept pace with the increasing costs of essentials such as housing, child care, and health care. For example, the report estimates that a single adult in Michigan needs an annual income of at least $27,372 to cover basic expenses, far above the federal poverty line of $13,590.
MORE NEWS: ArtPrize Returns to Grand Rapids Next Week
Similarly, the ALICE budget allocates $530 a month for full-time day care for one child, but a 2022 study by the Economic Policy Institute estimated the actual cost at $741 monthly for a toddler and $905 for an infant.
While the number of Michigan households living in poverty has decreased by 6% since the end of the Great Recession, the rise in ALICE households by 20% suggests a growing financial instability among the working class. With 13% of households below the federal poverty line and another 28% falling short of the ALICE income thresholds, many Michigan families are still struggling to achieve economic stability.
Leave a Comment
COMMENTS POLICY: We have no tolerance for messages of violence, racism, vulgarity, obscenity or other such discourteous behavior. Thank you for contributing to a respectful and useful online dialogue.