Pay increases not enough to offset inflation in Northeast Tennessee
JOHNSON CITY, Tenn. (WJHL) — Wage increases for low-paying jobs may have risen at a record-setting rate, but a report found that the pay change wasn’t enough to prevent a rise in economic struggles in Tennessee.
In Northeast Tennessee, almost half of the households in the region are struggling to make ends meet, an update from United For ALICE found.
The United Ways of Northeast Tennessee (comprised of five local United Ways) announced in a news release Thursday that its research partner, United For ALICE, found the number of struggling households in Tennessee grew by more than 29,000 from 2021 to 2022.
The United Ways of Northeast Tennessee found that 1.2 million Tennessee households (roughly 44%) of households were living paycheck-to-paycheck.
The release states those figures include 375,897 Tennessee households living in poverty. They also include 850,235 households defined as ALICE (Asset Limited, Income Constrained, Employed). ALICE families earn above the federal poverty level but make less than what they need to get by in the current economy.
According to the United Ways of Northeast Tennessee, ALICE workers often include people like child care providers, cashiers and home health aides. In general, ALICE workers have low-paying jobs and often have little or no savings.
“In Tennessee’s first congressional district, which includes 12 Northeast Tennessee counties, 46% or 94,247 of households fall below the ALICE threshold, slightly more than the state average of 44%,” the release states.
United For ALICE provides a county breakdown for each Tennessee county, showing what percentage of each is considered impoverished and ALICE. For example, United For ALICE reports 19% of Johnson County’s population falls below the poverty line and another 35% is considered ALICE.
United For ALICE’s latest update shows wages did increase, but so did costs. United For ALICE reports that for more than a decade, the number of Tennessee ALICE households has steadily grown.