With a 3.7% unemployment rate, Arkansas’ labor force is one of the strongest in the nation. But rising costs of basic household expenses continue to outpace wages, leaving nearly half of our state stretched impossibly thin.
These households are ALICE – Asset Limited, Income Constrained, Employed – earning above the Federal Poverty Level, working 40 hours a week, yet struggling to afford basic household expenses.
Earning below the Federal Poverty Level
Earning above the FPL but unable to afford basics and largely ineligible for public assistance
Living below ALICE Threshold (Poverty + ALICE divided by Total Households)
For over six decades, the federal poverty line has served as the benchmark between poverty and financial independence. Established in 1965, when a loaf of bread cost 20 cents, this measure overlooks the varying cost of living across the state and fails to accurately represent today’s economic challenges, including stagnant wages and increasing costs for essential items like childcare, housing, and healthcare.
Based on an unrealistic estimate of grocery expenses, it masks the true extent of financial vulnerability in our communities. This renders hardworking Arkansans unfairly ineligible for vital assistance programs and often leaves them feeling invisible in their struggles to save and get ahead.
For over six decades, the federal poverty line has served as the benchmark between poverty and financial independence. Established in 1965, when a loaf of bread cost 20 cents, this measure overlooks the varying cost of living across the state and fails to accurately represent today’s economic challenges, including stagnant wages and increasing costs for essential items like childcare, housing, and healthcare.
Based on an unrealistic estimate of grocery expenses, it masks the true extent of financial vulnerability in our communities. This renders hardworking Arkansans unfairly ineligible for vital assistance programs and often leaves them feeling invisible in their struggles to save and get ahead.
Using state-specific data based on household type, the ALICE survival budget calculates the bare-minimum cost of household basics (housing, child care, food, transportation, health care, and a smartphone plan, plus taxes and a small contingency).
(swipe left and right to view different household sizes)
ALICE, encompassing early education workers, laborers and movers, home health aides, heavy truck drivers, store clerks, repair workers, and office assistants - are often the most essential workers in our community, yet among the most financially vulnerable. They live paycheck to paycheck, forced to make impossible choices: pay the rent or buy food, receive medical care or pay for childcare, pay utility bills or put gas in the car.
These tough decisions, made under financial strain, not only impact their immediate well-being but also have long-term consequences for their households and communities.
By making ALICE visible and calling attention to the actual costs of living and working in this state, we can create the financial stability necessary to ensure a thriving workforce and growing economy for our state and local communities.
Be a voice for change. Share the ALICE data and your own experiences in your social circles, workplaces, and community. Together, we can drive awareness and inspire action that supports stability and mobility for our friends, loved ones, employees, and neighbors.
United For ALICE is a driver of 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.
