Danbury/NewMilford/Stamford/Rocky Hill, Conn. – Oct. 9, 2016 - According to the updated United Way ALICE Report released today by Connecticut United Ways, both the number and percentage of households in Connecticut struggling to pay for their most basic needs increased from 2012 to 2014. More than one out of four households in one of the wealthiest states in the U.S., are employed, yet still fall below what is needed to thrive financially.
Two years ago, United Ways introduced ALICE, which stands for – Asset Limited Income Constrained Employed – to place a spotlight on a large population of residents who are working, but have difficulty affording the basic necessities of housing, food, child care, health care and transportation. The updated Report uses data from a variety of sources, including the U.S. Census and the American Community Survey to provide tools that quantify the number of households in Connecticut’s workforce that are struggling financially. In particular, the updated ALICE Report analyzes ALICE households along demographic lines and reveals the following trends affecting ALICE:
- How a growing number of Americans are vulnerable to financial shocks or emergencies because they cannot save enough;
- How technology is making some jobs obsolete and creating opportunities in other occupations; and,
- How the growth in the “gig economy” and on-demand employment (e.g. Uber, temp agencies, etc.) impacts ACLIE workers, and more.
ALICE and poverty households combined account for 38 percent of households in the state that struggle to make ends meet. A total of 361,521 Connecticut households fall into what the study describes as the ALICE population. These are households earning more than the official U.S. poverty level, but less than the basic cost of living. This is more than 2.5 times the number of households that fall below the federal poverty level.
Connecticut United Ways are joining with United Ways in fifteen other states to provide statewide ALICE Reports. The updated Connecticut ALICE Report provides analysis of how many households are struggling in every town, and what it costs to pay for basic necessities in different parts of the state (Household Survival Budget).
The updated United Way ALICE Report reveals:
- The composition of the ALICE population is men and women, young and old, of all races.
- The breakdown of jobs in Connecticut by hourly wage (51% of jobs pay more than $20/hour) compared to what it costs to survive for a family of four (2 adults, 1 infant, 1 preschooler) - $70,788.
- Every city and town in Connecticut has ALICE households. More than two-thirds of Connecticut’s cities and towns have at least 1 in 5 households that fit the ALICE definition for financial hardship.
The updated ALICE Report recommends both short-term and long-term strategies to help ALICE families and strengthen our communities. United Ways work with many community partners to provide support to ALICE families to help them get through a crisis and avoid a downward spiral into even worse circumstances such as homelessness as well as assisting with financial literacy, education and workforce readiness.
Further, United Ways in Connecticut have invested more than $8.5 million in child care and early learning; $1.3 million in housing and homeless prevention work; $5 million to basic needs programs; and, have assisted working families in obtaining nearly $40 million in EITC and tax refunds and credits in 2016.
The updated Connecticut ALICE Report was funded by the 16 Connecticut United Ways. For more information or to find data about ALICE in local communities, visit http://alice.ctunitedway.org.
For the first time, an online simulator is also available to experience the financial challenges that ALICE households in Connecticut face at www.MakingToughChoices.org.
About Connecticut United Ways
Connecticut United Ways advance the common good by creating opportunities for all, with a particular focus on education, income/financial security, health, and basic needs – the building blocks for a good quality of life. We engage people and organizations throughout our communities who bring passion, expertise, and resources needed to get things done, and we invite everyone to be part of the change.
