ALICE report shows post pandemic households struggle to afford essentials

The ALICE report studies populations who are Asset Limited, Income Constrained and Employed by household. The report, which is published every two years, is a demographic analysis study of impoverished and ALICE households by area conducted by United Way. 

Nationally, Louisiana ranks as the second highest state for the percentage of people below the ALICE threshold. When populations are defined hereafter as “below ALICE threshold” know that the data then includes a combination of ALICE households and households at poverty level. 

51% of Louisianans are living under the ALICE threshold. Only the state of Mississippi has a higher percentage of households below the threshold than Louisiana. People in the ALICE category are employed and living above poverty levels, but cannot afford basic essentials in their area.  

In Louisiana, 22,980 more households are in financial distress in 2021 than were included in the 2019 ALICE report. Also, basic expenses for ALICE households have increased by 11% since the 2019 study.

“The latest release shows that while the pandemic relief measures helped prevent many households’ financial collapse, the relief was only temporary,” Michael Williamson, President and CEO of United Way of Southeast Louisiana said. “The alarming breakdown of pandemic experiences by race, gender and disability status highlights the urgency of addressing the systemic inequities brought to light in 2021 and accelerates our efforts to turn ALICE data into action to prevent a surge in financial instability across Southeast Louisiana.”

This year’s ALICE report estimates a modest single person household in WBR to necessitate $2,783 per month to support itself with basic needs, a family of four (two adults, two children) has an estimated $5,713 monthly cost to meet basic needs. 

There are still many WBR citizens in the ALICE category in 2021. According to cost of living surveys, these people are likely unable to save for the future or provide for all needs regularly. 

Percentage wise, the WBR black and hispanic communities show over 50% of their households under the ALICE threshold. Therefore, a larger percentage of those communities are affected by the defined hardship as Williamson addressed. 

The white household population of WBR has fewer percentage of people under the ALICE threshold and in ALICE designated category alone, but includes more total households in the ALICE category (1,521 households) than hispanic and black communities of WBR combined. 

According to the 2021 report data separating households by race, the number of households in WBR defined by ALICE qualifiers exceeds 3,000. *However, as data for minority groups may overlap where some black households also identify as hispanic households and vice versa, the true total number of ALICE households in WBR for 2021 is 2,730. White household data includes only those who identified as white, non-hispanic households per data notes. 

Percentage of households below ALICE threshold for 2021 in WBR by district in descending order are as follows:

District Nine     61%

District Five      58%

District Three 56%

District Six       40%

District One 36%

District Four 33%

District Eight 33%

District Two  28%

District Seven 24%

District nine and three are at the northern most and southern most parts of the Parish respectively and district five, one of the smallest district areas of the Parish, includes the west side of LA highway 1 Court St. in Port Allen.  

*Amended after printed publication to clarify data found in report.