Almost 1 in 3 Thurston households is struggling with basic costs, new report says
Nearly a third of Thurston County residents struggled to afford basic necessities, such as food, housing, child care and health care in 2021, continuing a concerning multi-year trend, according to new data.
United For ALICE, a national research effort that includes United Ways and other groups, released the report last week. It features new data on families it describes as ALICE — which stands for Asset Limited, Income Constrained, Employed — from two years into the pandemic.
ALICE families earn above the federal poverty level but less than what they need for basics. The report says they are typically people with low-wage jobs who have little to no savings that could prevent them from falling into poverty.
The percentage of Thurston County households that were ALICE in 2021 is notably larger than the percentage reported in 2010.
About 22% of Thurston County’s 117,186 households were ALICE and 10% earned below the federal poverty level in 2021, according to an online data dashboard. A family of four would have to make $26,500 or less in 2021 to be considered poor by the federal government, according to the report.
In 2010, 18% of Thurston County’s 99,869 households fell into the ALICE category and 10% in poverty. However, the data show those percentages peaked in 2016 when 22% of Thurston County’s 105,863 households were ALICE and 11% were living in poverty.
Washington state data show about 24% of the state’s more than 3 million households were ALICE and 10% were living in poverty in 2021.
Similarly to Thurston County, the number of Washington state households that were ALICE has been increasing since 2010, the data shows. About 20% of the state’s 2.6 million households were ALICE and 12% were in poverty in 2010.
The state’s population grew about 3% from 2019 and 2021, but the report indicates the total number of financially insecure households increased 8% in the same period.
The report ranks Washington’s 34% as fourth in financial hardship in the country, meaning it has one of the lowest percentages of households that cannot afford basics.
Alaska had the lowest percent of households under the ALICE threshold at 32% and Mississippi had the highest at 52%, per the report. Neighboring Oregon ranked 39th with 44% under the threshold.
What’s causing these trends?
Job disruptions during the pandemic and inflation contributed to recent trends, according to a news release from United Ways of the Pacific Northwest. Public assistance programs helped soften those impacts, but those can’t be counted on going forward.
“Today, with COVID-19 supports all but gone, we know things may be much worse on the ground in many communities than seen in this 2021 spotlight,” Jim Cooper, President and CEO of United Ways of the Pacific Northwest, said in the release. Cooper also is an Olympia City Council member.
“We must be diligent to not let our neighbors continue to fall through the cracks, or the costs to society will be much greater,” he said.
Stephanie Hoopes, United For ALICE National Director, said public assistance programs provided great relief during the pandemic.
“However, as some of these supports come to an end, growing food insufficiency and other indicators reveal continued stress,” Hoopes said. “Ignoring these warning signs places ALICE, our economy and the well-being of our communities at great risk.”
The findings in the report are based on an annual “ALICE Household Survival Budget,” which factors basic living costs for communities.
The average Washington family of four with an infant and a preschooler would need to earn $92,532 a year before tax credits to pay for basic necessities, according to the report. With tax credits, the report says that income could fall to $77,328 a year.
Meanwhile, the report says the average single adult would need to earn $27,228 a year and a single senior would need to earn $31,104 a year.
About 45% of the state’s 20 most common jobs in Washington paid less than $20 per hour, according to the report. The top two most common jobs with lower median wages were retail sales and fast food and counter workers.
The report indicates costs have outpaced wage increases over the past decade, causing substantial percentages of workers to live below the ALICE threshold.
Additionally, the report cites Federal Reserve surveys that found rates of emergency savings for vulnerable groups fell during the pandemic.
The number of respondents with savings dropped from 46% in 2019 to 43% in 2021 among households that were ALICE or experiencing poverty, the report says.
At the same time, the report says more financially stable respondents reported having savings, up from 65% to 79%.
Disparities in the data
Disparities across demographic groups are present in rates of financial hardship as well, according to the report.
For example, about 46% of Hispanic, 51% of Black and 52% of American Indian or Alaska Native households were below the ALICE threshold in 2021.
Yet, the report shows around 33% of white households and about 26% of Asian households were reportedly below the ALICE threshold.
More households with people under 25 and households with people over 65 fell under the ALICE threshold than those with people aged 25-65, the data shows.
Additionally, single female-led households with children had about 70% below the threshold while single male-led households with children had 50%.
The report attributed these disparities to persistent racism, ageism, gender discrimination and geographic barriers.
What’s being done at the local level?
Thurston County Commissioner Carolina Mejia said the county has been working to address the root causes of the struggles described in the report.
“This report aligns with the messages I hear in the community, and I relate to those struggles as someone who had housing insecurity in the past,” Mejia said.
Mejia said the county has been funding policies and programs that aim to increase affordable housing, improve access to quality healthcare, and provide job training and employment opportunities.
“From 2020-July 2023, Thurston County has managed Federal and State COVID Rent Assistance Funds for families and households unable to pay rent and to prevent eviction — over $50,000,000 has been distributed in that time,” Mejia said.
In March, the county launched its Eviction Prevention Rent Assistance program, which is permanently funded by the state rather than through temporary pandemic-related funds, to help households facing an imminent risk of homelessness.
The county also partners with a variety of local organizations that offers resources to those in need. A list of community resources can be found on the county website.
“Our communities need more than the resources we currently have available,” Mejia said. “We know we can’t address the need alone without increasing capacity across every aspect our of social safety net.”
