New research zeroes in on households living paycheck to paycheck, yet often with income that’s too high for assistance
In 2023, the number of households that are struggling to make ends meet reached a record number, according to new data from United Way of Westchester and Putnam and its research partner United For ALICE. The State of ALICE in Westchester reveals that traditional measures of poverty have severely undercounted the number of households countywide that are living in financial hardship.
While 10% of all households in the county lived in poverty in 2023, the new research shows that 28% –nearly three times as many – were ALICE® (Asset Limited, Income Constrained, Employed). Combined, 38% of Westchester’s households, totaling 144,612, fell below the ALICE Threshold of Financial Survival in 2023, up from 2% or 10,581 households in 2022. It is the largest number of households falling below the ALICE Threshold since the study began in 2010.
ALICE households bring in less than the basic costs of housing, childcare, food, transportation, health care and technology, plus taxes. Yet because their income is above the Federal Poverty Level, they often don’t qualify for assistance.
“Entire families and essential workers can’t make ends meet and are being overlooked for support. When we underestimate how many households are struggling, we underestimate what it truly takes to build thriving communities,” said Tom Gabriel, President and CEO of the United Way of Westchester and Putnam. “This means too many are left without the resources they need to stay healthy, achieve financial stability and reach their fullest potential. That’s a loss not just for ALICE families, but for all of us. We cannot continue to ignore this problem when Westchester residents are struggling in an economy that simply isn’t working for them.”
The crux of the struggle for ALICE families is the gap between wages and expenses. In 2023, a family of four with children in childcare in Westchester needed $131,316 just to cover the essentials – more than four times the Federal Poverty Level of $30,000. Yet even with both parents working full time in two of the state’s most common jobs – a personal care aide and a stock worker/order filler – this family’s combined income still fell short of the cost of basics by $57,436.
Additionally, some groups face financial hardship at disproportionate rates, with 75% of the youngest and 47% of the oldest households in Westchester falling below the ALICE Threshold, compared with 38% of households headed by someone age 25-44. Similarly, Black and Hispanic households are 53% and 52% likely to be below the ALICE Threshold as compared to 30% of white households.
The statistics from Westchester County align with the state findings. The State of ALICE in New York State also reveals that in 2023:
- New York State ranked 3rd in financial hardship among all 50 states plus the District of Columbia, with one of the nation’s highest percentages of households struggling to make ends meet.Louisiana and Mississippi were the only two states with a greater rate of financial hardship at 50% and 49% respectively.
- Housing continues to be an obstacle for struggling families. Among households below the ALICE Threshold in New York, 70 % of households that rented and 61% of those that owned were rent and housing burdened – meaning they paid 30% or more of their income on rent and housing costs.
“ALICE families are especially vulnerable during natural disasters and times of economic uncertainty and yet often feel unseen or left behind,” said Stephanie Hoopes, Ph.D., National Director at United For ALICE. “By providing a name and a way to quantify these households, we’re equipping communities with the data to build solutions that offer better choices and real pathways to stability.”
A copy of the latest The State of ALICE in Westchester is available on the United Way of Westchester and Putnam website at www.uwwp.org/alice. More state and local data is available through the interactive dashboards on https://www.unitedforalice.org/introducing-ALICE/new-york
UWWP is located at 336 Central Park Ave., White Plains, NY 10606. Phone: 914-997-6700 Website: www.uwwp.org, Facebook: (www.facebook.com/UnitedWayWP), LinkedIn: https://www.linkedin.com/in/united-way-of-westchester-and-putnam, Instagram: https://www.instagram.com/unitedwaywp/ and X (@UnitedWayWP).
About United For ALICE
United For ALICE is a U.S. research organization driving innovation, research and action to improve life across the country for ALICE® (Asset Limited, Income Constrained, Employed) and for all. Through the development of the ALICE measurements, a comprehensive, unbiased picture of financial hardship has emerged. Harnessing this data and research on the mismatch between low-paying jobs and the cost of survival, ALICE partners convene, advocate and collaborate on solutions that promote financial stability at local, state and national levels. For more information, visit: UnitedForALICE.org.
