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 Ohio and Franklin County is rising, according to a new update from United Way of Central Ohio and its research partner, United For ALICE.

The report, “ALICE in the Crosscurrents: An Update on Financial Hardship in Ohio,” reveals that about 1.9 million of the 4.9 million households in Ohio, or 39%, were living below the ALICE Threshold in 2022, a figure that encompasses both those in poverty and those classified as ALICE (Asset Limited, Income Constrained, Employed).

These hardworking individuals—such as child care providers, home health aides, cashiers—struggle to make ends meet in our current economy, but earn above the Federal Poverty Level, which is based on food prices established in the 1970s and indexed to inflation, meaning it doesn’t capture the reality of essential household expenses like health care, food and child care.

That sobering reality underscores the financial struggles experienced by a significant portion of households in the region despite being employed. For instance, the basic costs for a family of four with an infant and a preschooler to live and work in Ohio, excluding tax credits, rose from $78,768 in 2021 to $83,616 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.

Zooming in on Franklin County, we find a similar narrative of financial strain. While the county’s ALICE and poverty rates align with state averages, there are stark differences at the township level. For instance, in Columbus City and Whitehall, where two of United Way’s Success by Third Grade partner school districts are situated, 44% and 57% of households fall below the ALICE threshold.

This contrasts sharply with areas like Upper Arlington and Bexley, where only 16% and 19% face similar financial hardships. Moreover, demographic disparities exacerbate these challenges, with Black and Hispanic households bearing a disproportionate burden compared to their white counterparts.

These statistics align with educational challenges observed in the Success by Third Grade movement, which addresses the nonacademic barriers to student success. As we work to narrow the educational achievement gap, tackling economic instability emerges as a crucial priority for us. Our mission extends beyond philanthropy; it’s about fostering systemic change. By lifting families above the ALICE threshold and connecting them with vital resources, we pave the way for academic success and economic resilience.

The ALICE report, rooted in rigorous methodology and comprehensive data analysis, is a powerful tool for understanding and addressing economic disparities. By spotlighting the financial challenges faced by too many Franklin County residents, United Way of Central Ohio hopes that our community will support the Success by Third Grade movement, which aims to put all students on a pathway to success by the time they leave third grade.

Download and read the Franklin County ALICE report.

Download and read the Ohio ALICE report.

Download and read the national ALICE report.