.jpg)
The ranks of Virginia households unable to afford the basics grew by more than 36,000 during the first two years of the COVID-19 pandemic, resulting in a total of 1.2 million households or 38% struggling to afford the basics by 2021, according to a new report from United Way of Rockbridge and its research partner United For ALICE.
That calculation includes the 338,028 households in poverty as well as another 911,704 families defined as ALICE (Asset Limited, Income Constrained, Employed), earning above the federal poverty level but less than what’s needed to survive in the modern economy.
“ALICE in the Crosscurrents: COVID and Financial Hardship in Virginia” shows that the total number of financially insecure households rose by 3% between 2019 and 2021 – compared to a 4% increase in the state’s overall population.
Locally, levels of financial hardship persisted from 2019 to 2021. The ALICE report revealed that in 2021, Buena Vista had a total of 57% of households living either below the poverty level or ALICE, while Rockbridge County had 44% of such households. Lexington saw a significant improvement from 53% of households below the poverty or ALICE thresholds in 2018, to 41% in 2021.
“The struggle for families whose incomes place them in poverty or ALICE groups was often hidden in plain sight until the pandemic,” said United Way of Rockbridge Executive Director Jennifer Dent. “Information from the most recent ALICE report allows the organizations in our area to improve efforts and track our progress in reducing financial hardship in our region.”
In the face of continuing economic uncertainty, this information provides an opportunity to learn from the pandemic experiences.
According to the report, for a family of four with an infant and a preschooler, the annual ALICE Household Survival Budget, which is the basic cost needed to live and work in Rockbridge County, was $61,740 in 2021. Even with the variety of temporary pandemic supports available, in 2021, a family of four with two-full time workers earning salaries as a retail salesperson and a cashier – two of the most common occupations in Virginia – fell short of affording the family budget by $12,472.
“A positive change during the pandemic was that tax credits, stimulus payments and rental assistance were available for ALICE households and provided strong relief,” said Stephanie Hoopes, United For ALICE national director. “However, as some of these supports come to an end, growing food insufficiency and other indicators reveal continued stress. Ignoring these warning signs places ALICE, our economy and the well-being of our communities at great risk.”
While job disruptions and inflation delivered significant financial pain, a combination of pandemic supports and rising wages did help to blunt what could have been a deeper financial crisis, the report finds. However, as some benefits are peeled back, and inflation persists, signs of greater financial stress are on the horizon.
To read the report and access online, interactive dashboards that provide data on financial hardship at the state, county and local level, visit unitedforalice.org/virginia.
