A new report from United Way of Greater Chattanooga and its research partner United for ALICE revealed that the cost of living for a Hamilton County family of four with two children in child care rose by $8,200 in just one year. At the same time, poverty rose by 2 percent. Even though more residents joined the workforce, it wasn’t enough to close the growing gap between wages and the cost of basic needs like housing, child care, food and transportation, said officials.
The latest ALICE data from 2023 provides a picture of financial hardship across the Greater Chattanooga region.
ALICE stands for Asset Limited, Income Constrained, Employed. These are households earning more than the Federal Poverty Level but not enough to afford the basics. ALICE families often work multiple jobs and earn too much to qualify for assistance, but too little to make ends meet. Traditional federal poverty measures overlook ALICE families entirely.
In the most recent year of available data, 14 percent of Tennessee households were officially in poverty. But that number more than doubles when ALICE is included. Combined, 44 percent of Tennessee households were living below the ALICE threshold. In Georgia, that number is 45 percent of households.
“When we underestimate how many families are struggling, we underestimate what it truly takes to build a thriving community,” said Lesley Scearce, president and CEO of United Way of Greater Chattanooga. “ALICE represents our teachers, healthcare workers, delivery drivers, and caregivers—people holding up the local economy while struggling to support their own households.”
In both Tennessee and Georgia, many of the most common jobs don’t pay enough to cover basic needs. In Tennessee, 32 percent of workers in the 20 most common occupations lived in households that couldn’t afford essentials. In Georgia, that number was slightly higher at 35 percent.
Hamilton County Snapshot
In 2023, 10,961 households with children lived below the ALICE threshold, a 15 percent increase from the previous year. While the percentage of ALICE households overall remained steady, poverty rose by 2 percent, meaning more families are falling deeper into crisis, said officials.
North Georgia Snapshot
Catoosa County: 2 percent decrease in households below the ALICE threshold, with improvements in income and workforce participation.
Walker County: 6 percent decrease in ALICE households, but poverty increased by 3 percent, showing mixed progress.
Dade County: Little change, but financial hardship remained high.
Across Greater Chattanooga, families are struggling to find stability. A single unexpected expense can spiral into deeper hardship, said officials.
Community Action
ALICE represents neighbors, coworkers and friends. United Way of Greater Chattanooga is urging the community to take action to support local families.
“When businesses, nonprofits, and local governments work together, we can make a real difference for working families,” said Ms. Scearce. “When families thrive, so does the economy. Thriving families raise thriving kids—the future of our workforce. And a strong workforce is the foundation of a strong economy. We can’t afford to leave hardworking families behind.”
Here are recommendations from United Way:
Employers: Join the upcoming United for Working Families Summit to support financial resilience for local employees.
Community Members: Advocate for family-friendly policies and vital resources like Head Start and SNAP by sending a message to U.S. representatives and senators.
Donors: Support emergency assistance and long-term solutions through United Way’s 211 helpline and community programs.
Learn more and explore the latest ALICE data at unitedwaycha.org/alice.