New report identifies 22% in Koochiching County earn above poverty, less than survival budget UWNEMN joins national ALICE® movement
United Way of Northeastern Minnesota (UWNEMN) gathered with United Ways across the state and other leaders at the State Capitol Tuesday to unveil a new report, “ALICE in Minnesota: A Study of Financial Hardship” from United Ways of Minnesota and their research partner, United For ALICE.
ALICE® is an acronym for Asset Limited, Income Constrained, Employed, and it’s a way of understanding families, neighbors, and colleagues who are working, earn above the Federal Poverty Level, but don’t make enough to afford a basic household survival budget. ALICE workers include childcare providers, home health aides, cashiers, retail clerks, waiters, nonprofit professionals, and others.
Though every United Way office is independently and locally operated, United Ways across the state worked with the United for ALICE network — a national movement to raise awareness about this growing but often hidden population in our communities – to create and release the report, which is accompanied by a website that breaks down information on a county and community-specific level.
The report finds that though wages for the lowest paid jobs have risen across the country at the fastest rate in four decades, the number of households struggling to get by in Minnesota grew from 2021 to 2022. As a result, a total of 834,343 households or 36% were living paycheck to paycheck – that calculation includes 233,779 Minnesota households in poverty as well as another 600,564 defined as ALICE.
Data shows deviations from the state average (26% ALICE and 10% in poverty) in UWNEMN’s service area (Iron Range, Koochiching County, and Lake of the Woods County). In 2022:
- Itasca County – 29% ALICE, 12 % poverty
- Koochiching County – 22% ALICE, 11% poverty
- Lake of the Woods County – 31% ALICE, 10% poverty
- St. Louis County – 26% ALICE, 16% poverty
ALICE in Minnesota: A Study of Financial Hardship 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 Minnesota, excluding tax credits, rose from $63,444 in 2021 to $77,304 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. In 2022, household costs in Koochiching County for a single adult ($23,868) and a family of four ($70,404) were well above the Federal Poverty Level of $13,590 and $27,750 respectively.
“Our organization works to help people and communities thrive, and in order to do so, we need a true reflection of local needs,” said United Way of Northeastern Minnesota Executive Director Erin Shay. “This report shows glaring gaps in our heretofore understanding of residents who need additional support and how upstream interventions could stabilize hard working families and individuals in a way that would strengthen our entire region.”
The findings in this newly released report are consistent with a more than decade-long trend: Since the end of the Great Recession, despite some ups and downs, the number of ALICE households in Minnesota has been steadily growing. From 2010 to 2022, the total number of households rose by 10%, households in poverty increased by 1% — and the number of ALICE households grew by 33%.
“The data is showing persistent and widespread financial hardship — a red flag that the current system isn’t working for ALICE,” said Stephanie Hoopes, Ph.D., United For ALICE National Director.
To read the report and access online, interactive dashboards that provide data on financial hardship at the state, county and local levels, visit: UnitedForALICE.org/Minnesota
Since 1966, United Way of Northeastern Minnesota (UWNEMN) has worked to serve the needs of individuals and families on the Iron Range (Northern St. Louis County and Eastern Itasca County), Koochiching County, and Lake of the Woods County. The organization’s mission is to unite and focus our communities in creating measurable results to improve people’s lives and strengthen our families. For more information, visit www.unitedwaynemn.org.