Report-Rising Number of Olmsted County Workers Are Falling Behind
Rochester, MN (KROC-AM News) - The United Way of Olmsted County has released the results of a study commissioned as part of an effort to highlight the worsening plight of the working poor.
According to a news release issued Tuesday, "ALICE in Minnesota: A Study of Financial Hardship" found that despite "wages for the lowest paying jobs rising at the fastest rate in four decades, the number of households struggling to get by in Minnesota grew from 2021 to 2022." The findings indicate nearly 835,000 households statewide were living paycheck to paycheck. That equates to 36% of Minnesota households.
ALICE stands for ASSET Limited, Income Constrained, Employed. The United Way says it encompasses people who are working with earnings above the Federal Poverty Level, but do not make enough to afford what it terms a "basic household survival budget." The news release says those low earning workers have little or no savings that leaves them one emergency away from poverty.
Locally, the report found 24% of Olmsted County households fit into the ALICE category in 2022. It also found that 9% of Olmsted County households had incomes below the poverty level, which translates into 33%, or more than 22,500, local households are struggling financially.
“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."
According to the study, the basic costs for living and working in Minnesota, excluding tax credits, rose to about $77,300 annually for a family of four with an infant and a preschooler in 2022. That represents an increase of nearly $14,000 from the previous year. In Olmsted County, the study found a family of four would have to earn nearly $90,000 to meet basic expenses. The income needed to meet those basic needs by an individual Olmsted County resident was pegged at a little over $32,200.
The federal poverty level in 2022 was just under $13,600 for an individual and about $27,750 for a family of four.
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Gallery Credit: Samm Adams
