A report released by the Michigan Association of United Ways in partnership with United for ALICE, the Consumers Energy Foundation and local United Ways throughout the state shows 41 percent of Michigan residents are living in poverty or financially struggling. 

This report assesses how the economic conditions influence people using data from 2022, according to Yahoo Finance. 

While the report evaluates those living below the poverty rate, it also captures the households that follow under ALICE: Asset Limited, Income Constrained, Employed. The individuals who fall into this category normally don’t qualify for local, state or federal assistance, but still struggle with finances despite working to combat that, according to reports.

“These are individuals across our communities that are working sometimes two, three jobs,” Natalie O’Hagan, senior director of strategy and culture for United Way of South Central Michigan, said in a Yahoo Finance report. “They’re living paycheck to paycheck, so they’re under some pretty strong financial constraints.”

The report shows that the amount of Michigan households living beneath the poverty rate is 13 percent. The amount of ALICE households living above the poverty rate increased by roughly 89,000 for 2021 and 2022, which stands at 28 percent of households in Michigan, according to the report. 

Still, 41 percent of Michigan households fall between being an ALICE household or living below the poverty rate, the report shows. 

Forty-nine percent of fast food counter workers and cooks are considered below the ALICE threshold as well as 47 percent of cashiers and 46 percent of waiters. 

The report also captured health care workers. Fifty-two percent of personal care aids are living below the ALICE threshold as well as 41 percent of nursing assistants. Eleven percent of registered nurses are also living below the ALICE threshold. 

“These are really hardworking individuals,” O’Hagan said. “But because of a lot of different factors, they’re really struggling.”

The report assesses living costs, considering housing, transportation, food and child care and weighs in typical wages. It also found that ALICE households with children have increased for both single-parent families and married-parent families. 

According to the report, “longstanding disparities in financial hardship by household type remained: Seventy-three percent of single-female-headed families and 52 percent of single-male- headed families were below the ALICE Threshold in 2022, compared to 16 percent of married-parent families.”

“Things cost more. Right now you go to the grocery store, groceries are more expensive, that resonates for everybody,” O’Hagan said.

Child care, according to the report, is one of the “highest survival budget costs for households with children.” And consequently, the services that offer child care have fewer providers and fewer affordable options for care.