New ALICE research zeroes in on households living paycheck to paycheck, yet often with income that’s too high for assistance
In 2023, 27% of workers in Ohio’s 20 most common jobs lived in households that could not afford basics, according to new data from United Way of Greater Cleveland and its research partner United for ALICE. These workers are the backbone of every community and include delivery drivers, fast food and counter workers, registered nurses, and teachers.
The State of ALICE in Ohio reveals that traditional measures of poverty have severely undercounted the number of households countywide living in financial hardship, with Cuyahoga County being no exception. While 16% of all households in the county lived in poverty in 2023, the new research shows that an additional 27% were part of the ALICE population (Asset Limited, Income Constrained, Employed). Combined, 43% of the county’s households fell below the ALICE Threshold of Financial Survival in 2023, a 10% increase since 2019.
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.
How we are helping the ALICE population in Cuyahoga County
United Way of Greater Cleveland works with several community partners to support programs that address the needs of the ALICE population, including:
- Make it Home Cleveland, a program committed to giving people living in tax-forfeited properties the opportunity to purchase the property before it is sold to someone else. The program combines personalized guidance with resources intended to ensure a smooth transition to homeownership. In 2024, the program helped more than 40 families and saw its first property transfer in January of this year.
- Bridge to Two, which uses a home-based approach to early education preparedness. The program uses home visits to build relationships with parents and caregivers to create quality learning experiences, develop language and literacy skills, and support social and emotional growth for children and their parents. In 2024, the program served 60 families in parent skill-building programs, including literacy and other educational resources.
- Cuyahoga Earned Income Tax Credit Coalition, which provides free tax preparation assistance and financial services. In 2024, the coalition helped 10,000 Cuyahoga County residents receive more than $11.7 million in tax refunds, putting money back into the pockets of working families.
Ohio legislators have also shown support for the ALICE population by allocating funding for programs and initiatives that have increased access to health and behavioral health services for children and families, higher education scholarships, workforce upskilling and readiness programs, and childcare assistance.
United Way of Greater Cleveland continues to join United Ways across the state advocating for additional support, including:
- Reinstating the $1,000 child tax credit
- Offering publicly funded childcare for families making up to 200%
of the federal poverty level - Allocating funding to Ohio 211 to ensure statewide access
- Reinstating funding for the Siemer Family Institute, which works to prevent homelessness.
The widening gap between wages and expenses
The struggle for ALICE families comes from the gap between wages and expenses. In 2023, a family of four with two children in childcare in Cuyahoga County needed $90,852 just to cover the essentials – more than three times the Federal Poverty Level of $30,000. Yet even with both parents working full time in the two most common jobs in the county – healthcare and retail – this family’s combined income still fell short of the cost of basics by more than $37,750.
The State of ALICE in Ohio also reveals that in 2023:
- Some groups face financial hardship at disproportionate rates, with 74% of the youngest and 53% of the oldest households falling below the ALICE threshold in Cuyahoga County, compared with 35% of households headed by someone ages 45 to 64.
- Rates of financial hardship differ substantially by race/ethnicity in Ohio due to persistent barriers that limit many families’ access to resources and opportunities for financial stability. In Cuyahoga County, 73% of American Indian/Alaskan Native, 60% of Black and 53% of Hispanic households were below the ALICE Threshold.
- Full- and part-time workers paid by the hour, who are more likely to have fluctuations in income and less likely to receive benefits, make up 39% of the workforce in the county.
- Each of the 5 most common jobs in the county pay less than $16 an hour. That is roughly $32,000 a year if working full time.
- Households in East Cleveland were the most likely to struggle financially, with 79% living below the ALICE Threshold, as were 62% of Cleveland households.
- The ALICE population is 25% or higher in 36 of the 57 Cuyahoga County municipalities in the report.
Households below the ALICE Threshold play a vital role in the community as neighbors, family members, and civic participants. They also contribute to the economy as workers, consumers, and taxpayers. However, the research continues to show a clear trend that financial hardship is widespread and not going away. Collaborative efforts at the local, state, and federal levels will be needed to change the trajectory for ALICE households.
The Cost of Basics Outpace Wages
To capture the reality of household costs across Ohio, United For ALICE provides household budgets that are tailored by location and household type.
The Household Survival Budget reflects the minimum cost to live and work in today’s economy and includes housing, childcare, food, transportation, health care, and technology, plus taxes and a 10% miscellaneous category. This budget is the basis for determining whether households are above or below the ALICE Threshold by county.
To learn more about the ALICE population in Cuyahoga County, and access interactive dashboards that provide data on financial hardship at the state, county, and local levels, visit unitedforalice.org/state-overview/ohio
