-May 28th
ALICE Report- Michigan Jobs (Recommended)
“The cost of basic
household expenses in Michigan is more than most jobs can support. Even though
the cost of living in Michigan is among the most affordable in the U.S., a
basic household budget is beyond what most jobs in the state can provide to
working households.”
While it is well
recognized that Michigan has faced daunting economic times with the decline of
the auto industry and the Great Recession, the official poverty rate of 16
percent obscures the true magnitude of the financial instability in the state.
Michigan has 605,210
households below the Federal Poverty Level (FPL) but also has 930,503 Asset Limited, Income Constrained, Employed
(ALICE) households (equaling a grand total of 1.54 million households (income) below
the ALICE Threshold). The ALICE threshold represents those in our communities
who are working yet still struggling to reach ends meet.
More than 60% of all jobs in Michigan pay less
than $40,000 a year. This is
terrifying, especially because many of us are joining the workforce soon! The
ALICE report projects a domination of low-income jobs in Michigan’s economy for
the foreseeable future. Nearly three quarters of Michigan’s 1,529
municipalities have 30 percent or more of households unable to make ends meet.
The average level of income needed in order to survive in Michigan ranges from
$47,000 to $62,000 annually for a family of four.
Here is a LINK to the
full report.
Questions: Answer the one(s) that interests you the most!
What are you thoughts
on the ALICE report?
How have we as a state become such a large supplier of
low-income jobs and is this a new trend we're seeing across the US?
Why is Michigan projected to create even more low-income jobs in
the foreseeable future?
How does this affect income inequality?
What policies
could Michigan implement to fix this problem?
Definitely scary like you said, as we are all joining the workforce soon. This continues to show how the majority (60%) suffer lower incomes where it is said that 47k - 62k is sufficient to make meets end. It's not right that the majority should suffer. The report also projects a domination of low income jobs in the near future; I think this contributes to the growing income inequality problem we have been covering. I think it should be the goal to at least lower the percentage showing the majority of people suffering.
ReplyDeleteThis is not very comforting news! I think there is a cyclica problem in place where workers have been leaving the state to find higher paying jobs which leaves the less fortunate and less educated behind to fulfill lower paying jobs so when educated people want to work in the state they are disheartened to find that the jobs they would like don't pay as much as it might somewhere else. There are programs in place like the Southwest Michigan Foundation encouraging college students and graduates to find work in the area. I think that organizations like this is a good way to counteract the viscous cycle.
ReplyDeleteThis is a really interesting article. I am an out a state student from Minnesota, so it is eye opening to observe how the decline of the auto industry and the recent Great Recession has affected Michigan's economy. I can imagine how this report would be unsettling for recent graduates and perhaps discouraging. Also, I can see how the result of the auto industry and recent recession have widen the income inequality gap. I think different factors attributed to the increase in income inequality for this state . That being said, I think the projected creation of low-income jobs May help to employ people but may also widening the state's income inequality level in the long run.
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