United Way of Alabama releases first statewide ALICE Report showing 46% of households below financial survival threshold
Anniston, AL – A comprehensive new study reveals that 928,753 Alabama households – representing 46% of all households in the state – earned below what researchers call the “ALICE Threshold of Financial Survival” in 2023, struggling to afford basic necessities despite many having jobs.
The first-ever statewide ALICE Report, released by United Ways of Alabama in partnership with United For ALICE, provides detailed analysis of financial hardship across the state. ALICE stands for Asset Limited, Income Constrained, Employed – a population that earns above the Federal Poverty Level but below what’s needed to cover basic household costs.
The report found that while 324,705 Alabama households (16%) live in poverty, an additional 604,048 households (30%) fall into the ALICE category. Combined, these groups represent nearly half of all households in the state struggling financially.
For a family of four with two adults, an infant, and a preschooler, the average annual cost of household basics in Alabama was $76,932 in 2023 – more than double the Federal Poverty Level of $30,000. These basics include housing, childcare, food, transportation, healthcare, technology, taxes, and a small contingency fund.
The study revealed significant geographic variation across the state. Madison County had the lowest rate of financial hardship at 35% of households below the ALICE Threshold, while Bullock, Greene, and Perry counties had rates exceeding 70%. In 60 of Alabama’s 67 counties, at least 40% of households earned less than needed to afford basic necessities.
The report highlighted challenges in Alabama’s job market. Of the 20 most common occupations in the state, 14 paid less than $20 per hour in 2023. Among workers in these common occupations, 33% lived in households below the ALICE Threshold, with particularly high rates among nursing assistants, cashiers, fast food workers, waiters and waitresses, and cooks.
The analysis showed that costs for household essentials have risen faster than wages. The ALICE Essentials Index for Alabama increased an average of 3.0% annually between 2007 and 2023, while median wages for retail salespersons – one of the most common occupations – increased only 2.7% annually during the same period.
Financial hardship varied significantly across demographic groups. The youngest households (under 25) and oldest households (65+) experienced the highest rates of hardship at 74% and 53% respectively.
Racial disparities were evident, with 61% of Black households and 52% of Hispanic households falling below the ALICE Threshold, compared to 40% of White households. Single-female-headed families with children faced the greatest challenges, with 82% below the threshold compared to 18% of married-parent families.
The report found that traditional public assistance programs don’t reach all struggling households. Only 44% of Alabama households in poverty and 17% of ALICE households participated in SNAP (food assistance) in 2023, largely due to income eligibility requirements.
The research suggests that bringing all Alabama households to the ALICE Threshold would require $19.8 billion, which researchers argue could stimulate economic growth through increased consumer spending and tax revenue.
United Ways of Alabama emphasized that ALICE workers fill essential roles in the state’s economy, serving as teachers, childcare workers, healthcare providers, and retail staff. The organization plans to use this data to inform policy discussions and community interventions.
The study was conducted using data from the U.S. Census Bureau’s American Community Survey and other federal sources, with methodology developed by United For ALICE, a national research initiative.
