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
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
In 2022, household costs in UWNEMN’s service area for a single adult and a family of four were well above the Federal Poverty Level of $13,590 and $27,750 respectively:
- Itasca County – $26,556 individual, $78,444 family of four
- Koochiching County – $23,868 individual, $70,404 family of four
- Lake of the Woods County – $24,612 individual, $77,460 family of four
- St. Louis County – $27,912 individual, $81,384 family of four
“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:
“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