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 3
What ALICE Measures Household Survival Budget ALICE Threshold ALICE Income Assessment 4
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 Sources: BLS, 2017; Consumer Reports, 2017; IRS, 2016, 2017; Michigan Department of Education Office of Great Start, 2018; Tax Foundation 5 2017, 2018; USDA, 2017; HUD, 2017.
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 6
43% of Michigan Households Cannot Afford the Basics 7
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. 8 Source: American Community Survey, 2017, and the ALICE Threshold, 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 . 9 Source: American Community Survey, 2017, and the ALICE Threshold, 2017
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 10 Source: American Community Survey, 2017, and the ALICE Threshold, 2017
How does Michigan compare? Households below ALICE Threshold by state Michigan has the 22 nd 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 11
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 . 12 Source: American Community Survey, 2017, and the ALICE Threshold, 2017
ALICE Families with Children 13
ALICE Households by Age 14
ALICE workers keep the economy running Top 20 occupations by employment and wage, 2017 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 Source: Bureau of Labor Statistics, Occupational Employment Statistics (OES) Wage Survey - All Industries Combined, 2017 15
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. Source: U.S. Census, Quarterly Workforce Indicators (QWI), 2017 16
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. Source: U.S. Census, Quarterly Workforce Indicators (QWI), 2017 17
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. 18
Community Resources for ALICE Short • Food Pantry • Emergency Loans Term • MI Bridges and 2‐1‐1 Mid Term • Student Resource Centers Long • Education • Economic Development Term
www.MichiganALICE.org
Recommend
More recommend
