United Way: Nearly Half of Florida Households Cannot Meet Basic Needs

Despite the much heralded job growth in Florida, a new report by United Way of Florida finds 45 percent of households struggling to afford the basic necessities of housing, child care, food, health care and transportation.

“It is well recognized that despite its growing economy, internationally renowned tourism, and wealthy retirees, Florida faced difficult economic times during the Great Recession,” the United Way report says. “Yet the official poverty rate of 15 percent obscures the true magnitude of financial instability in the state.”

The Report finds Florida has 1.1 million households with income below the Federal Poverty Level, but in addition, another 2.1 million households who cannot afford the basic necessities such as housing, child care, health care and transportation.

“These numbers are staggering: in total, 3.2 million households in Florida – fully 45 percent, triple the number previously thought – are struggling to support themselves,” the authors write.

The Report looked at the size and condition of households struggling financially and it introduces the term ALICE – Asset Limited, Income Constrained, Employed.

It points out that ALICE households are working households: they hold jobs, pay taxes, and provide services that are vital to the Florida economy, such as retail salespeople, customer service representatives, laborers and movers and health care aides.  The core issue is, these jobs do not pay enough to afford the basics of housing, childcare, food, health care and transportation.

“There are serious consequences for both ALICE households and their communities when these households cannot afford the basic necessities,” the authors declare.

Looking ahead and perhaps more worrying, the growth of low-skilled jobs is projected to outpace medium-and high-skilled jobs into the next decade. At the same time, the cost of basic household necessities will continue to rise.

See the full ALICE Report HERE.