ALICE: Asset Limited, Income Constrained, Employed.

Michigan ALICE Report

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Lead Researcher, Director and AuthorStephanie Hoopes, Ph.D. – United Way of Northern New Jersey

Michigan Research Advisory CommitteeBrian 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

What ALICE Measures

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Household Survival Budget

ALICE Threshold

ALICE Income Assessment

Cost of Living in Michigan

5Sources: BLS, 2017; Consumer Reports, 2017; IRS, 2016, 2017; Michigan Department of Education Office of Great Start, 2018; Tax Foundation 2017, 2018; USDA, 2017; HUD, 2017.

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

Household Survival Budget sources

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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

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43%of Michigan Households Cannot 

Afford the Basics

Financial hardship is increasing over time

8 Source: American Community Survey, 2017, and the ALICE Threshold, 2017

Household income, 2010 to 2017

Despite improvement in employment and gains in median income, the economic recovery in Michiganhas 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 6percent from 2010 to 2017.

Earnings for people in Michigan

9 Source: American Community Survey, 2017, and the ALICE Threshold, 2017

Number of jobs by hourly wage, 2017

Wages needed to support the Household Survival Budget:Single adult: $10.52/hourFamily 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.

ALICE lives in all counties

10 Source: American Community Survey, 2017, and the ALICE Threshold, 2017

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

How does Michigan compare?

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Households below ALICE Threshold by state

Michigan has the 22nd 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

ALICE households vary by family type

12 Source: American Community Survey, 2017, and the ALICE Threshold, 2017

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.

ALICE Families with Children

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ALICE Households by Age

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15 Source: Bureau of Labor Statistics, Occupational Employment Statistics (OES) Wage Survey - All Industries Combined, 2017

ALICE workers keep the economy running

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

Top 20 occupations by employment and wage, 2017

It matters where ALICE works

16 Source: U.S. Census, Quarterly Workforce Indicators (QWI), 2017

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 tobecome medium or large employers.

However, small firms also tend to have lower wages, fewer benefits, and higher turnover.

Percent of employment by firm size

17 Source: U.S. Census, Quarterly Workforce Indicators (QWI), 2017

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.

2019 ALICE Report key findings

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In 2018, 43% of Michigan households could not afford basic needs14% 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.

Community Resources for ALICE

• Food Pantry• Emergency Loans

Short Term

• MI Bridges and 2‐1‐1• Student Resource CentersMid Term

• Education• Economic Development

Long Term

www.MichiganALICE.org