Working – and Still Falling Short: Pennsylvania ALICE Data Demonstrates 13 Year Trend of Growth in Number of Working Families Living Paycheck to Paycheck
While the number of Pennsylvania households living at or below the poverty level has been relatively flat since 2010, the number of ALICE households increased by 17%
Harrisburg, Pennsylvania – Between 2010 and 2023, financial hardship has been growing in Pennsylvania as rising wages have failed to keep up with the cost of household basics. During this time, the total number of households in PA increased by 7%, while the number of households in poverty increased 5% but the number of ALICE® (Asset Limited, Income Constrained, Employed) households increased by 17%.
ALICE households bring in less than the basic costs of housing, child care, food, transportation, health care and technology, plus taxes. Yet because their income is above the Federal Poverty Level, they often don’t qualify for assistance. 29% of workers in Pennsylvania’s 20 most common jobs lived in households that couldn’t afford basics, according to new data from United Way of Pennsylvania and its research partner United For ALICE. These workers – the backbone of every community – include personal care aides, nursing assistants, child care workers, janitors, cashiers and cooks.
“United Way of Pennsylvania is committed to advocating for Pennsylvania ALICE households who live paycheck to paycheck, while many of our local United Ways raise flexible donor dollars which are invested in supports that can help ALICE households achieve financial stability and reach their fullest potential,” said Ron Frick, UWP Board Vice Chair and President/CEO of Lycoming County United Way.
Alarmingly, in 2023, 69% of all renters below the ALICE threshold in Pennsylvania were rent-burdened, meaning they pay 30% or more of their income on rent and utilities. For homeowners below the ALICE threshold, 52% are paying 30% or more of their income on costs like mortgage, utilities and homeowner’s insurance. Housing is one of the biggest expenses in the household survival budget, exceeded by child care costs only in households with multiple children requiring full-time care. This data demonstrates why affordable housing for the workforce is inextricably tied to Pennsylvania’s economic future.
“When ALICE households struggle, they often earn too much to qualify for publicly-funded programs, but they can reach out to PA 211 to find out if there are any other community resources that they can access to meet their needs. The number one reason why ALICE households reach out to PA 211 is for help affording and maintaining housing,” said Ben Eison, Public Policy Committee Chair.
“Another increasingly common reason ALICE connects to 211 is for help recovering from the impacts of severe weather like several feet of snowfall in Erie last winter, flash flooding from tropical storm Debby in the fall of 2024, and more recently the damage caused by high winds and lengthy power outages in Southwest PA,” according to Emily Aubele, Vice-President for PA 211.
Whether it’s the month-to-month emergency of finding affordable child care, or a sudden and unplanned natural disaster, United Way is committed to advocating for policies and investments that make a difference to support essential ALICE workers to secure greater financial stability.
“Local United Ways are in Harrisburg today to seek our elected officials’ support for our legislative priorities for ALICE households. This includes stabilizing the public-private partnership that assures statewide access to PA 211, and enacting individual tax relief in the form of a refundable Working Pennsylvanians’ Tax Credit. We also support a recruitment and retention initiative to address a shortage of affordable, high quality early care and education which secures the ability of caregivers to participate fully in the workforce,” said Kristen Rotz, President of United Way of Pennsylvania.
More state and local data is available through the interactive dashboards on UnitedForALICE.org/pennsylvania
About United Way of Pennsylvania
United Way of Pennsylvania is the statewide membership association for local United Ways in the commonwealth. United Way of Pennsylvania and PA 211 mobilize communities to action so that every person can thrive. Through deep connections across the Commonwealth, we provide real-time insights into community needs. Together, we lead with data-driven, evidence-based solutions to meet critical challenges in health, financial security, youth opportunity, and community resilience. Our work is rooted in listening and responding quickly, and with a strong network across all zip codes in Pennsylvania, we’re able to bring resources and people together to create lasting change.
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 35 states and the District of Columbia and includes United Ways, corporations, nonprofits and foundations in Alabama, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawai‘i, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, 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.
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