New ALICE Update shows wage growth was no match for inflation after a decade of falling behind
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 West Virginia grew by more than 2,023 from 2021 to 2022. As a result, a total of 720,668 households or 48% were living paycheck to paycheck, according to a new Update from United Way of Anytown and its research partner United For ALICE.
That calculation includes the 123,486 West Virginia households in poverty as well as another 220,759 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 workers include child care providers, home health aides and cashiers — those working low-wage jobs, with little or no savings and one emergency from poverty.
ALICE in the Crosscurrents: An Update on Financial Hardship in West Virginia shows that while wages were increasing, so too were costs. For a family of four with an infant and a preschooler, the basic costs to live and work in West Virginia, excluding tax credits, rose from $62,124 in 2021 to $74,628 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.
“Too many of our loved ones, friends and neighbors are working extremely hard to provide better futures for their families, but find themselves struggling to simply survive,” said Jedd Flowers, Executive Director of United Way of the River Cities, Inc. “This updated research will help us more clearly identify the specific obstacles that are holding ALICE back and will inform our work to remove those barriers to ALICE’s success. Over the coming months, United Way of the River Cities will utilize the ALICE data as we begin working collaboratively with the community to develop a comprehensive action plan for addressing ALICE’s most pressing needs. Ultimately, our vision is that everyone in the six-county area we serve has the tools and opportunities they need to thrive.”
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 West Virginia has been steadily growing. From 2010 to 2022, the total number of households fell by 3%, households in poverty decreased by 4% — and the number of ALICE households grew by 13%.
“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 child care that’s affordable, to inadequate community supports such as broadband internet.”
Additional insights include:
- From 2010 to 2022, people age 65 and over made up the fastest-growing age group in West Virginia — and the group with the largest increase (21%) in the number of households struggling to make ends meet.
- Racial disparities persisted in the rates of financial hardship; 62% of Black and 44% of Hispanic households in West Virginia were either in poverty or ALICE in 2022, compared to 47% of white households.
- Food assistance continued to elude many vulnerable families in West Virginia. Partly due to the SNAP income eligibility level in the state (200% of the Federal Poverty Level), only 52% of all West Virginia households in poverty and 21% of all ALICE households participated in SNAP in 2022.
To read the Update and access online, interactive dashboards that provide data on financial hardship at the state, county and local levels, visit UnitedForALICE.org/West-Virginia.
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.
