Who is ALICE: Asset Limited, Income Constrained, Employed

By Latrice Lewis

The ALICE Report, produced by United Way of Frederick County and its research partner United for ALICE, is a comprehensive look at working individuals and families who cannot afford basic living costs in their communities. ALICE households represent a significant segment of the population facing financial instability and economic challenges. These households are characterized by having incomes above the federal poverty level but still insufficient to cover the basic cost of living.  

Did you know that approximately 30% of Frederick County households are ALICE? There are many variables that lead to a family falling into the ALICE household category. Here are a few of the challenges that ALICE households face:

  • ALICE households often struggle to make ends meet despite being employed. Their income falls short of covering basic necessities like housing, food, transportation, healthcare, and childcare.

  • ALICE children often face barriers to quality education and enrichment opportunities, as their families struggle to afford books, tutoring, or extracurricular activities. 

  • Limited access to reliable transportation can hinder ALICE workers' ability to reach job opportunities or access essential services. 

  • ALICE households may experience food insecurity, meaning they don't always have enough nutritious food, and they may rely on food assistance programs or skip meals. 

  •  The high cost of childcare can consume a significant portion of an ALICE family's income, making it difficult for parents to work or attend training or education programs. 

  • Debt Accumulation: ALICE households often resort to credit cards or loans to cover essential expenses, leading to debt accumulation and financial instability. 

  • Limited Career Advancement: Despite being employed, many ALICE workers have limited opportunities for career advancement and wage growth, trapping them in a cycle of low-paying jobs. 

Obstacles also include:

  • Debt accumulation, 

  • Limited career advancement,

  • Substandard housing or constant threat of eviction, 

  • Healthcare dilemmas, 

  • Little to no savings or emergency funds. 

As an employer, you may think, “How could I help?” First, after reviewing United Way of Frederick County's 2023 ALICE Report, you can better understand what these hard-working individuals in our community are facing, which may include some of your employees. Then, as an organization, identify any areas where you can make changes that can positively impact these ALICE households through organizational changes, creative community projects, etc.

United Way of Frederick County envisions a community where all individuals and families achieve their potential through healthy lives, education, and financial stability. Read more about United Way's mission.  

Frederick County Workforce Services (FCWS) can provide Labor Market Information (LMI) that may be helpful as you consider solutions.
Contact the Business Services Team for more information.

 
 
Jessica Mills