See how many working families in your county aren’t paid enough to cover basic necessities

Editor’s Note: This article was originally published by MLive.

By Lauren Gibbons | lgibbon2@mlive.com

Many of Michigan’s essential workers were already struggling to cover costs of living prior to the COVID-19 pandemic, according to a new report, and officials fear the coronavirus has only put them in a more vulnerable position.

A new report from the Michigan Association of United Ways on Asset Limited, Income Constrained, Employed, or ALICE households found 38% of Michigan households struggled to make ends meet, up from 32% in 2007, just prior to the Great Recession.

Of Michigan’s 3,963,558 households, 13% earned less than the Federal Poverty Level and 25% were under the ALICE threshold, which takes into account costs of housing, food, transportation, child care, health care and other household essentials. Another 10% of households were considered on the cusp of the ALICE threshold in 2019 because they were one income bracket away from being considered an ALICE household.

In 2019, the average ALICE Household survival budget in Michigan was $23,400 for a single adult, $26,244 for a single senior, and $64,116 for a family of four. The Federal Poverty Level is $12,490 for a single adult and $25,750 for a family of four.

The report found households who are Hispanic, Black, or headed by single moms are more likely to fall under the ALICE threshold by significant margins. Students and seniors are also more susceptible to falling into the ALICE category.

The data presented in the report is from 2019 — just prior to the COVID-19 pandemic. But considering many Michigan workers filling low-wage essential jobs or losing employment due to the pandemic were already in the ALICE category, the pandemic is only exacerbating the financial pressures this population was already facing, said Mike Larson, CEO of the Michigan Association of United Ways.

“These are people that we have to have frontline doing this work, but yet we put them in a very difficult situation — not just themselves, but their families,” he said. “In some situations...they don’t have benefits, they aren’t getting the hours they used to get. All of those things are playing into their ability to be financially sustainable.”

In a statement, Michigan Governor Gretchen Whitmer said she’s hopeful college tuition programs like Futures for Frontliners and Michigan Reconnect and expanding access to childcare assistance helps give essential workers and other ALICE households in Michigan additional support.

“Every day and especially in times of crisis, we rely on countless essential workers to keep us going,” said Michigan Governor Gretchen Whitmer. “As this year’s 2021 Michigan ALICE Report shows, many of them are in need of our support. We must serve all Michiganders in need, especially those who keep us all going, with initiatives that invest in their health, education, and financial security.”