Member News

Lebanon, Pennsylvania — 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 Pennsylvania grew by more than 22,000 from 2021 to 2022. As a result, a total of 2,151,647 households or 41% were living paycheck to paycheck, according to a new Update from United Way of Pennsylvania and its research partner United For ALICE.

That calculation includes the 658,448 Pennsylvania households in poverty as well as another 1,493,199 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. ALICE workers include childcare providers, home health aides and cashiers — those working low-wage jobs, with little or no savings and one emergency from poverty.

ALICE in the Crosscurrents: An Update on Financial Hardship in Pennsylvania shows that while wages were increasing, so too were costs. For a family of four with an infant and a preschooler, the basic costs to live and work in Pennsylvania, excluding tax credits, rose from $80,220 in 2021 to $88,896 a year later. Compounding the issue in 2022 was the loss of up to $15,000 in federal child tax credits and stimulus payments that this family had access to in 2021.

Lebanon County is currently home to 55,245 households, 12% of which are in poverty, 31% of households are ALICE. That amounts to 43% of Lebanon County being below the ALICE threshold, which is 2% higher than Pennsylvania as a whole.

“There is no doubt, bigger paychecks helped, but inflation and the loss of pandemic supports converged to keep ALICE trapped,” said United Way of Lebanon County Executive Director Bert Miuccio. “This latest data is a reminder that our work of helping people in need is far from over.” 

The findings in this one-year period are consistent with a more than decade-long trend: Since the end of the Great Recession, despite some ups and downs, the number of ALICE households in Pennsylvania has been steadily growing. From 2010 to 2022, the total number of households rose by 7%, households in poverty increased by 5% — and the number of ALICE households grew by 19%.  

“The data is showing persistent and widespread financial hardship — a red flag that the current system isn't working for ALICE,” said Stephanie Hoopes, Ph.D., United For ALICE National Director. “Current policy has not been enough to break down the barriers that trap ALICE households in financial hardship, from lack of access to housing and childcare that’s affordable, to inadequate community supports such as broadband internet." 

Additional insights include:

=       From 2010 to 2022, people aged 65 and over made up the fastest-growing age group in PA — and the group with the largest increase (21%) in the number of households struggling to make ends meet.

=       Racial disparities persisted in the rates of financial hardship; 59% of Black and 55% of Hispanic households in PA were either in poverty or ALICE in 2022, compared to 38% of white households.

  Food assistance continued to elude many vulnerable families in Pennsylvania. Partly due to the SNAP income eligibility level in the state (160% of the Federal Poverty Level), only 49% of all Pennsylvania households in poverty and 23% of all ALICE households participated in SNAP in 2022.

To read the Update and access online, interactive dashboards that provide data on financial hardship at the state, county, and local levels, visit UnitedForALICE.org/Pennsylvania.

About United Way of Lebanon County

          The Lebanon County United Way’s mission is to serve as thought leaders, convene community, promote collaboration, and develop resources and solutions to strengthen the Lebanon County community. Our professional staff is supported by a strong Board of Directors, active community volunteers and strategic partners. Our vision is to prepare children for a strong start in life by removing barriers to learning and building strong families from the start. For more information, visit unitedwaylebco.org.

About United For ALICE 

United For ALICE is a U.S. research organization driving innovation, research and action to improve life across the country for ALICE (Asset Limited, Income Constrained, Employed) and for all. Through the development of the ALICE measurements, a comprehensive, unbiased picture of financial hardship has emerged. Harnessing this data and research on the mismatch between low-paying jobs and the cost of survival, ALICE partners convene, advocate and collaborate on solutions that promote financial stability at local, state and national levels. This grassroots ALICE movement, led by United Way of Northern New Jersey, has spread to 31 states and includes United Ways, corporations, nonprofits and foundations in Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawai‘i, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, Washington, D.C., West Virginia and Wisconsin; we are United For ALICE. For more information, visit: UnitedForALICE.org.