A report from United Way has found that nearly 2 million households across Michigan are not making enough money to afford amenities like food, health care and housing.
The biannual ALICE report looks at the effects of what the organization defines as “asset limited, income constrained, employed” individuals earning above the federal poverty level, yet struggling to afford basic expenses.
“Those are individuals that are struggling financially, living paycheck to paycheck, and are really one crisis away from potentially falling into the poverty threshold,” said Natalie O’Hagan, senior director of strategy and innovation at United Way of South Central Michigan.
The latest report analyzes federal data from 2021 and 2022 and finds that 75% of people working in the top 20 most common occupations in the state make less than $20 dollars per hour. The most common occupation in Michigan is fast food and counter workers with a median hourly wage of around $13 dollars per hour.
“These are people that are doing really important jobs and our communities that are struggling to make it by,” said O’Hagan.
The report also shows that in comparing families' incomes from 2022, many households received nearly $15,000 less in federal tax credits and stimulus payments than the previous year, while wages for the state’s two most common jobs only saw a 9% increase.
“People talk about the price of food at the grocery store, basic costs of living continue to rise, and wages are not keeping up with that rising cost of living,” explained O’Hagan.
The disparities are even more pronounced among households in mid-Michigan. While 41% of families across the state were found to be struggling to make ends meet in 2022, the figure jumps to 44% around Ingham, Eaton, Clinton, Jackson, Calhoun and Kalamazoo Counties.
“To be financially stable, which means being able to cover basic needs plus build some savings, a single adult in our region needs $4,104 every month. That’s a full-time hourly wage of $24.62,” said Jen Hsu-Bishop, executive impact & equity officer for United Way of South Central Michigan in a statement. “A four-person family needs $10,952 monthly, or $65.71 an hour, to be financially stable.”
The highest disparities in Michigan were among Black, Hispanic and Native American families in the state.
