ALICE: Asset Limited, Income Constrained, Employed. Michigan ALICE - - PowerPoint PPT Presentation

ALICE: Asset Limited, Income Constrained, Employed.

Michigan ALICE Report

Lead Researcher, Director and Author

Stephanie Hoopes, Ph.D. – United Way of Northern New Jersey

Michigan Research Advisory Committee

Brian Pittelko, M.P.A. ‐ W.E. Upjohn Institute for Employment Research Bridget Flynn Timmeney, M.S.W. W.E. Upjohn Institute for Employment Research David Clifford, Ph.D. ‐ Eastern Michigan University David Callejo Perez, Ph.D. ‐ Saginaw State Valley University Huda Fadel, Ph.D. ‐ Blue Cross Blue Shield of Michigan Kurt Metzger, M.A. ‐ Data Driven Detroit Luke Shaefer, Ph.D. ‐ University of Michigan Neil Carlson, Ph. D. ‐ Calvin College

What ALICE Measures

• Household Survival Budget
• ALICE Threshold
• ALICE Income Assessment

Cost of Living in Michigan

Household Survival Budget, 2017

FPL = $12,060 single adult and $24,600 family MI minimum wage (2017): $8.90/hour = $17,800/year Basic costs increased from 2010 to 2017: 26% for a single adult, 27% for a family of four – compared to 12% inflation

Household Survival Budget sources

• Housing: HUD’s Fair Market Rent (40th percentile)
• Child Care: Registered Family Child Care Homes
• Food: Thrifty Level (lowest of four levels) of the U.S. Department of Agriculture (USDA) Food Plans – with

regional variation

• Transportation: Car expenses include gas and motor oil and other vehicle maintenance expenses from

Consumer Expenditure Survey (CES)

• Health Care: nominal out-of-pocket health care spending, medical services, prescription drugs from

Consumer Expenditure Survey (CES)

• Technology: smart phone using Consumer Reports “Best Low-Cost Cell-Phone Plans”
• Taxes: Tax Foundation’s individual income tax rates and deductions
• Miscellaneous: 10 percent of the total (including taxes) to cover cost overruns

43%

• f Michigan Households Cannot

Afford the Basics

Financial hardship is increasing over time

Household income, 2010 to 2017

Despite improvement in employment and gains in median income, the economic recovery in Michigan has been uneven. Increases in the cost of living and flat wages have pushed additional households below the Threshold and into financial hardship. The total number of Michigan households that cannot afford basic needs increased 6 percent from 2010 to 2017.

Earnings for people in Michigan

Number of jobs by hourly wage, 2017

Wages needed to support the Household Survival Budget: Single adult: $10.52/hour Family of four: $30.64/hour In 2017, 61% of jobs in Michigan paid less than $20/hour. For comparison, in 2010, 64% of jobs paid less than $20/hour.

ALICE lives in all counties

Percent of households below the ALICE Threshold by county, 2010 and 2017

Drill down options on the website

• County
• Zip code
• Cities/Townships
• Congressional districts

UnitedForALICE.org

How does Michigan compare?

Households below ALICE Threshold by state

• Michigan has the 22nd highest

percentage of households with income below the ALICE Threshold compared to other states

• New Mexico has the highest

with 49 percent

• North Dakota has the lowest

with 32 percent

ALICE households vary by family type

Single or cohabiting (under 65) households, no children, by income, 2010 to 2017

Households headed by single or cohabitating adults, 18 – 64 years, with no children are the most common household type. In 2017, 44% of these households were below the ALICE Threshold.

ALICE Families with Children

ALICE Households by Age

ALICE workers keep the economy running

• ALICE workers are “Maintainers”
• They care for the workforce and build and maintain the

infrastructure

• In 2017, only three of the top 20 occupations – registered

nurses, general and operations managers, and mechanical engineers – paid enough to support the Household Survival Budget for a family of four

Top 20 occupations by employment and wage, 2017

It matters where ALICE works

Private-sector employment by firm size, with average annual wages, 2017

Small firms have been an important engine for growth, driving job creation, innovation, and wealth, and they have traditionally grown to become medium or large employers. However, small firms also tend to have lower wages, fewer benefits, and higher turnover.

Percent of employment by firm size

Percent employment by firm size, 2017

Wages vary widely by location with areas dominated by small companies having lower wages and less job stability. Employment in large firms is higher in urban areas. Employment in small firms is higher in rural areas.

2019 ALICE Report key findings

• In 2018, 43% of Michigan households could not afford basic needs

14% households are under FPL, 29% are between FPL and ALICE threshold = 43% total

• Despite overall improvement in employment, the economic recovery has been uneven
• Cost of basic household expenses in the ALICE Survival Budget have increased steadily. The cost of

the average household budget increased by 27 percent from 2010 to 2017, despite low rate of inflation nationwide – 12 percent from 2010 to 2017

• Although unemployment rates are falling, ALICE workers are still struggling. Low-wage jobs dominate

– 61% of all jobs in Michigan pay less than $20 per hour.

Community Resources for ALICE

• Food Pantry
• Emergency Loans

Short Term

• MI Bridges and 2‐1‐1
• Student Resource Centers

Mid Term

• Education
• Economic Development

Long Term

www.MichiganALICE.org