Groundbreaking Study Reveals One in Three North Carolina Households Struggled to Afford Basics in 2022
ALICE Report details size and scope of financial hardship in North Carolina
United Way of North Carolina President and CEO Brittany Pruitt Fletcher, United For ALICE Director Stephanie Hoopes, Ph.D., and select individuals representing ALICE in North Carolina are available for interviews. Contact Sara Carlson to coordinate.
Cary, NC – There were 1.8 million NC households unable to afford the state’s $78,576 average cost of living in 2022, according to the ALICE Report released today by United Way of North Carolina. The Report was released in partnership with United For ALICE, a U.S. research organization driving innovation, research and action to improve life across the country for people in financial hardship.
ALICE in North Carolina: A Study of Financial Hardship places a spotlight on what United For ALICE calls the ALICE population — households earning more than the official Federal Poverty Level, but less than the cost of basics such as housing, childcare, food, transportation, health care, technology and taxes. ALICE® stands for Asset Limited, Income Constrained, Employed — a large population of hardworking residents who work at low-paying jobs, have little or no savings and are one emergency away from falling into poverty.
The Report is the most comprehensive depiction of financial need in the state to date, using the latest data from a variety of sources, including the U.S. Census. The Report unveils new measures, based on 2022 income levels and expenses, that quantify how many NC households are struggling financially, and why.
In 2022, a total of 1.3 million NC households fell into the ALICE population. This number was more than double the official poverty rate, which accounted for another 550K households in the state. Combined, ALICE households and households in poverty made up the population below the ALICE Threshold of Financial Survival and accounted for 43% percent of all households in North Carolina.
“We all know ALICE,” said Brittany Pruitt Fletcher. “ALICE is the recent college graduate unable to afford to live on their own, the young family strapped by childcare costs and the underemployed mid-career professional. These folks are vital to our state’s future economic well-being, and they face barriers beyond their control – frustrating their ability to become financially stable.”
The Report is a project of United For ALICE, which leads a grassroots movement of United Ways, corporations, nonprofits and foundations in more than half the United States, all using the same methodology to document financial need. ALICE Reports provide county-by-county data and analysis of how many households are struggling, including the obstacles ALICE households face on the road to financial independence.
“This Report provides the objective data that explains why so many residents are struggling to survive and the challenges they face in attempting to make ends meet,” said the Report’s lead researcher, United For ALICE National Director Stephanie Hoopes, Ph.D. “Until now, the true picture of need in local communities and states has been understated and obscured by misleading averages and outdated poverty statistics.”
The ALICE Report reveals:
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Households below the ALICE Threshold span all races, ages and genders, yet for certain groups, the struggle is disproportionate. For example, 58% of Black and 54% of Hispanic households in North Carolina were below the ALICE Threshold in 2022, compared to 38% of white households.
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Because wages had stagnated for a decade, 36% of the state’s 114,630 retail sales workers — one of the most common occupations — lived below the ALICE Threshold in 2022.
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One third of North Carolina’s 100 counties had 40% of households unable to make ends meet in 2022. The average income needed to survive in North Carolina depends on local conditions and ranged from $28,000 to $78,500 annually for a family of four, more than double the official U.S. poverty level.
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ALICE families have been facing higher levels of inflation for more than a decade. The Report reveals that since 2007, the ALICE Essentials Index for North Carolina, which tracks the rising costs of only household basics, has consistently outpaced the broader Consumer Price Index (CPI). Costs peaked between 2021 and 2023, during which the ALICE Essentials Index rose at an annual rate of 3.4%, compared to 6.1% for CPI.
ALICE often is forced to make choices that compromise health and safety in order to make ends meet, Brittany Pruitt Fletcher said, putting both ALICE and the wider community at risk of long-term societal and economic repercussions.
“When ALICE chooses unlicensed childcare or longer commutes or emergency room health care in order to put food on the table, we all suffer the consequences with future costs to our education system, heavier traffic and higher premiums,” Pruitt Fletcher said. “United Way is committed to providing long-term solutions that will strengthen our communities.”
United Way mobilizes communities to action so all can thrive. From strengthening local resilience to advancing health, youth opportunity and financial security, United Way works towards a future where every person in every community can reach their full potential.
The ALICE Report for North Carolina was funded in part by Carolinas Credit Union Foundation.
For more information or to find data about ALICE in local communities, visit www.UnitedForALICE.org.
About United Way of North Carolina
United Way mobilizes communities to action so all can thrive. For almost 50 years, United Way of North Carolina (UWNC) has been a statewide organization, partnering with 47 local United Ways to co-create solutions to people’s most pressing challenges. We take a comprehensive approach, listening and responding to statewide needs, including but not limited to, strengthening local resilience and advancing health, youth opportunity, and financial security in our state. UWNC bridges and mobilizes people, local United Ways, and resources so individuals, families, and communities thrive in North Carolina. We are committed to four core areas of work: Member Services, NC 211, Disaster Response, and Advocacy. For more information, visit https://www.unitedwaync.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 the District of Columbia 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.
About Carolinas Credit Union Foundation
For nearly 30 years, the Carolinas Credit Union Foundation has served as a partner in philanthropy to credit unions, with a mission to empower and inspire credit unions in the Carolinas through collaborative opportunities to enrich our communities. The results of our work are visible across North and South Carolina, proving that by leveraging our cooperative spirit, we can change our communities. Consider our impact with the dozens of micro community grants awarded and our commitment to fund large-scale projects – credit unions have raised dollars for Prevent Child Abuse, the Duke Pediatric Bone Marrow Center, the Levine Children’s Hospital and the Greenville Children’s Hospital. Our most notable fundraising recipient is Victory Junction. Other programs including aiding in disaster relief, providing professional development grants, honoring and awarding our credit union heroes and supporting credit union scholarship programs for members from both states. For more information, visit https://carolinasfoundation.org/.