Though wages for the lowest-paid jobs have risen across the country at the fastest rate in four decades, the number of households struggling to get by in Cuyahoga County increased from 2021 to 2022. As a result, nearly 233,000 households, or 42 percent, were living paycheck to paycheck, according to the latest from United Way of Greater Cleveland and its research partner United For ALICE.
That calculation includes the more than 94,000 Cuyahoga County households in poverty and another 138,000-plus defined as ALICE (Asset Limited, Income Constrained, Employed) earning above the Federal Poverty Level but less than what’s needed to survive in the current economy.
The ALICE report reveals that while wages were increasing, so did costs. For a family of four with an infant and a preschooler, the basic cost to live and work in Cuyahoga County in 2022, excluding tax credits, was $88,644, well above the Federal Poverty Level of $27,750. Compounding the issue was the loss of up to $15,000 in federal child tax credits and stimulus payments that this family had access to in 2021.
So, even though a larger paycheck helped, inflation and the loss of pandemic aid combined to keep the ALICE population trapped. This continues a decade-long trend, as from 2010 to 2022 the number of ALICE households in Cuyahoga County grew by 16 percent.
Leading-edge local solutions
This consistent trend of a growing number of households struggling financially, but also often ineligible for public assistance, drove United Way of Greater Cleveland to partner with Devin Cotten on an innovative pilot program: Universal Basic Employment.
In 2022, of the 20 most common occupations in Ohio, 65 percent still paid less than $20 per hour, and 28 percent of workers in those occupations were below the ALICE threshold, according to the report. This workforce includes child-care providers, home health aides, and cashiers, all employed in low-low-wage jobs, with little or no savings, and one emergency from poverty.
Universal Basic Employment seeks to understand how offering better financial security through meaningful employment impacts the trajectory of a person’s income and wealth. By supporting traditional low-paying jobs to eliminate the need for most social safety net benefits, individuals and families are empowered to chart their course toward economic mobility, businesses can retain strong and productive employees, and neighborhoods can see an increase in community engagement.
United Way of Greater Cleveland also continues to use a strategic grantmaking process to launch and scale local solutions that directly benefit those in the ALICE population, including:
- Right to Counsel, providing free legal representation and rental assistance to low-income families who are renting and facing eviction in Cleveland;
- Lead Safe Cleveland Coalition, ensuring that lead-safe rental housing is available for children and families in Cleveland;
- Workforce Connect, addressing critical talent gaps in key industries in Northeast Ohio while improving economic mobility and reducing racial economic disparities;
- Family Stability Initiative, preventing unplanned moves due to eviction or foreclosure by providing direct financial assistance to families with school-age children in Cleveland; and,
- Social Determinants of Work, which seeks to mitigate barriers faced by workers and promote employer practices that lead to good jobs.
ALICE remains in the crosscurrents
Many ALICE households face ongoing distress because they have not recovered from the Great Recession, debt accumulation, job loss, or other major challenges. Many are working hard and still struggling to find safe housing, quality childcare, nutritious food, accessible health care, and reliable transportation.
Additional insights include:
- Households headed by people aged 65 and over are the fastest-growing age group in Ohio. In Cuyahoga County, there are almost 160,000 such households, and 51 percent are below the ALICE Threshold.
- Rates of financial hardship differ substantially by race/ethnicity in Ohio due to persistent systemic racism, discrimination, and geographic barriers that limit many families’ access to resources and opportunities for financial stability. In Cuyahoga County, 59 percent of Black and 48 percent of Hispanic households were below the ALICE Threshold.
- The ALICE population is 25 percent or higher in 37 of the 57 Cuyahoga County municipalities in the report.
The research shows a clear trend in our communities and economy: financial hardship is widespread and is not going away. Collaborative efforts at the local, state, and federal levels will be needed to change the trajectory for ALICE households.
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.
