New ALICE Report shows wage growth was no match for inflation
YORK, PA - Though wages for the lowest-paid jobs have risen across the country at the fastest rate in four decades, one in four households are still struggling to get by in York County. In total, over 63,000 households 34% were living paycheck to paycheck in 2022, according to a new update from United Way of York County and its research partner United For ALICE.
That calculation includes the 17,232 York County households in poverty as well as another 46,000 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 childcare providers, home health aides, and cashiers - those working low-wage jobs, with little or no savings and one emergency from poverty.
Furthermore, racial disparities persisted in the rates of financial hardship; 55% of Black and 55% of Hispanic households in York County were either in poverty or ALICE in 2022, compared to 33% of white households.
ALICE in the Crosscurrents: An Update on Financial Hardship in Pennsylvania 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 York County, excluding tax credits, rose from $67,608 in 2021 to $85, 752 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.
"There is no doubt, bigger paychecks helped, but inflation and the loss of pandemic supports converged to keep ALICE trapped," said United Way of York County President Brian Grimm. "This latest data is a reminder that while we have made some progress, our work is far from over."
United Way of York County is focused on assisting hardworking households on their journey toward financial stability. In order to meet the needs of the ALICE population, United Way of York County is embarking on an issue-focused strategy to create transformational impact for working households. Their efforts are focused on two key barriers: childcare and transportation.
To address high-quality childcare access, United Way of York County is participating in Every Child Has Opportunities (ECHO), an early childhood education initiative led by Community Connections for Children and York County Economic Alliance. To address affordability, the Seedlings Scholarship Program has been established in collaboration with the York County Community Foundation to support ALICE families, where those with children six weeks through two years old may apply for financial assistance.
Additionally, United Way of York County is convening and collaborating with key stakeholders like rabbittransit, New Hope Ministries, York County Community Foundations, and York County Economic Alliance to make transportation more equitable and accessible across the community.
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/Pennsylvania
About United Way of York County
For 100 years, United Way of York County has worked in the York County community to improve people's lives. It began as The York Welfare Federation, an organization that raised funds on behalf of 17 member agencies. Today, as United Way of York County, the mission remains the same, but the strategies have evolved in order to meet the growing and changing needs of people living in our York community.
In 2022, United Way of York County announced a three-year plan to transform its community impact to an issue-focused model, concentrating future efforts on the issue of working households struggling to cover basic living expenses. approximately one in four York County households earn more than the federal poverty level but do not earn enough to pay for basic needs. United Way of York County's goal is to help bridge the gap for thousands of financially struggling, working families through short-term support while also building pathways to self-sufficiency. United Way of York County has set a bold goal to assist 8,000 hardworking households on their journey toward financial stability.
About United for ALICE
United For ALICE is a U.S. research organization driving innovation, research, and action to improve life across the county 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.
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