Despite the economic recovery of the past year or better, a new study shows that low-wage jobs continue to dominate the landscape of Michigan’s Great Southwest. Essentially, nearly two-thirds of the jobs are paying less than $20 per hour, and more than two-thirds pay less than $15 per hour.
The Michigan Association of United Ways (MAUW) this week released a study on the condition of Michigan’s working families — what they have named ALICE households – those that are Asset Limited, Income Constrained, Employed. The report found that low-wage jobs continue to dominate the southwest Michigan employment landscape, with a reported 62-percent of jobs in the county paying less than $20 per hour, and 69-percent of those paying less than $15 per hour. That leaves 40-percent of Berrien and Cass county households unable to afford basic household necessities.
Anna Murphy, President of United Way of Southwest Michigan says, “United Way is shining a light on the magnitude of ALICE – a complex challenge that no single organization can solve.”
The report found that of Michigan’s 3.86 million households, 15-percent lived in poverty in 2015 and another 25-percent were below the ALICE threshold, earning below the average family’s cost of basic needs. At a combined 40-percent, the range of households struggling only improved by one percentage point from 2010 to 2012, and has remained flat in the years that followed.
Carolyn Bloodworth is Secretary/Treasurer of the Consumers Energy Foundation. She says, “Consumers Energy works to provide solutions to the Michigan residents we serve, and that includes helping our state’s United Ways to identify and respond to the needs of families across the state.”
Bloodworth adds, “The new ALICE study illustrates the conditions faced by many individuals and can help guide us and others as we work to serve our communities better.” You can find that report by clicking the link below:
United Way of Southwest Michigan and the Michigan Association of United Ways join with some 450 United Ways from 15 states across the country to better understand the struggles of ALICE.
Various organizations across the country are also using this data to better understand the struggles and needs of their employees, customers and communities. To produce the United Way ALICE Report for Michigan, a national team of researchers collaborated with the Michigan Research Advisory Committee, composed of representatives from across the state, who advised and contributed to the report. The report focuses on providing objective, comprehensive county-by-county data that identifies the size of the ALICE population in Michigan and works to identify the obstacles that keep these residents from achieving financial independence. The current report builds on data found in the 2014 ALICE study, showing not only continuity but also highlighting United Way’s commitment to this data.
United Way of Southwest Michigan and United Ways across the state currently work to provide some short and medium-term solutions for ALICE households, such as offering scholarships to access quality child care, free tax preparation and financial and career mentoring. In shedding light on the underlying causes keeping ALICE households from getting ahead, United Way of Southwest Michigan provides information that will inform discussions with businesses, government agencies, other nonprofits, the faith-based community and residents to create solutions for a stronger Michigan.
United Way fights for the health, education and financial stability of every person in southwest Michigan. They do this by LIVING UNITED. By forging unlikely partnerships. By finding new solutions to old problems. And by mobilizing the best resources. To join the fight, you can visit www.uwsm.org or call 269-982-1700.
