Despite Bigger Paychecks, Struggling Households in Mississippi Continue to Increase

New ALICE Update shows wage growth was no match for inflation after a decade of falling behind

Callout Box: United Way of West Central Mississippi is collecting audio testimonials from ALICE
individuals about the difficult financial choices they continue to face today given the high cost of essentials and ongoing inflation. Stories can be recorded at: ALICEvoices.org.

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 Mississippi grew
by more than/nearly 7,973 from 2021 to 2022. As a result, a total of 586,430 households or 52%
were living paycheck to paycheck, according to a new Update from United Way of West Central
Mississippi and its research partner United For ALICE.

That calculation includes the 218,414 Mississippi households in poverty as well as another
368,016 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 Mississippi 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 Mississippi, excluding tax credits, rose from $71,388 in 2021 to
$75,948 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.

“There is no doubt, bigger paychecks helped, but inflation and the loss of pandemic supports
converged to keep ALICE trapped,” said United Way of West Central Mississippi Executive
Director Michele Connelly. “This latest data is a reminder that while we have made some
progress, our work 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
Mississippi has been steadily growing. From 2010 to 2022, the total number of households rose by 4%, households in poverty increased by 4% — and the number of ALICE households grew by
15%.

“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
Mississippi — and the group with the largest increase (57%) in the number of
households struggling to make ends meet.
 Racial disparities persisted in the rates of financial hardship; 68% of Black and 64% of
Hispanic households in Mississippi were either in poverty or ALICE in 2022, compared to
42% of White and 41% Asian households.
 Food assistance continued to elude many vulnerable families in Mississippi. Partly due
to the SNAP income eligibility level in the state

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/Mississippi.

About United Way of West Central Mississippi
The United Way of West Central Mississippi is a non-profit organization dedicated to improving
the lives of individuals and families in the communities we serve. Through collaborative efforts
with local partners, volunteers, and donors, we address key issues such as education, financial
stability, and health to create lasting change and build a stronger, more vibrant community.
  
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.