United Way of Alabama releases first statewide ALICE Report showing 46% of households below financial survival threshold
Cleburne County, 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 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 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.
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.
