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New ALICE Data Shows Rising Cost of Basics
Historically Outpaces Overall Inflation in Louisiana
Research zeroes in on households living paycheck to paycheck, priced out of survival
Monroe, Louisiana - The cost of household necessities in Louisiana rose faster than inflation for more than 15 years, leaving many households vulnerable to the growing affordability crisis, according to new data from United For ALICE, in partnership with United Way of Northeast Louisiana.
The latest State of ALICE report for Louisiana includes data from the ALICE Essentials Index, which tracks the rising costs of six basics families need to live and work: child care, food, transportation, health care and technology. Between 2007 and 2024, the ALICE Essentials Index for Louisiana increased 58%, compared with 52% for the broader Consumer Price Index (CPI), which reports inflation across more than 200 categories of goods and services.
The report highlights the growing financial strains on the demographic known as ALICE® (Asset Limited, Income Constrained, Employed). With income above the Federal Poverty Level but unable to afford basic expenses, 548,775 Louisiana households were ALICE in 2024. When combined with households in poverty, 49% of all households in Louisiana fell below the ALICE Threshold of Financial Survival.
"Behind these numbers are families making impossible choices every day, between groceries and utilities, child care and rent," said Kim Lowery, President and CEO of United Way of Northeast Louisiana. "The ALICE data helps guide our work with partners across Louisiana, so we can respond to immediate needs and help build stronger paths to stability."
The crux of the struggle for ALICE families is the gap between wages and expenses. In 2024, a family of four in Louisiana needed $81,912 just to cover the essentials, nearly four times the Federal Poverty Level of $31,200. Yet even with both parents working full time in two of the state's most common jobs, a cook and a teller, this family's combined income still fell short of the cost of basics by $24,042.
The State of ALICE in Louisiana also reveals that in 2024:
- Louisiana ranked 51st in financial hardship among all 50 states plus the District of Columbia, with one of the nation's highest percentages of households struggling to make ends meet.
- ALICE households were found in every major industry statewide, with the highest levels of hardship in food service and accommodation (52%), administrative and support, waste management and remediation services (42%), and agriculture, forestry, fishing, and hunting (39%).
- Poverty rates in Louisiana have remained relatively flat since 2010, while the number of ALICE households has steadily increased.
- Minimum-wage workers in Louisiana were paid an hourly wage of $7.25 in 2024. Yet for one full-time adult worker with one school-age child, that wage still was not enough to support the ALICE Household Survival Budget, the minimum cost of basics, in Northeast Louisiana.
"The ALICE research shows that the affordability crisis is not new," said Stephanie Hoopes, Ph.D., National Director at United For ALICE. "Already stretched thin, ALICE families have no cushion for rising gas or utility costs, forcing tough tradeoffs with other necessities. That's the insight policymakers and community leaders need to build a stronger future for ALICE and all.
More state and local data is available through the interactive dashboards on UnitedForALICE.org/Louisiana.
About United Way of Northeast Louisiana
United Way of Northeast Louisiana is dedicated to improving lives and strengthening communities through a focus on education, financial stability, health, and basic needs. In partnership with local volunteers, donors, and organizations, United Way NELA creates lasting, measurable change across the region. Louisiana has the highest percentage of ALICE families in the nation, with over 50% of households statewide unable to meet basic needs. In Northeast Louisiana, the rate is even higher. United Way NELA addresses these challenges head-on through targeted programs that help families thrive.
About United For ALICE
United For ALICE is a U.S. research organization driving innovation, research, and action to improve life across the country for ALICE® (Asset Limited, Income Constrained, Employed) and for all. Through the development of the ALICE measurements, a comprehensive, unbiased picture of financial hardship has emerged. Harnessing this data and research on the mismatch between low-paying jobs and the cost of survival, ALICE partners convene, advocate, and collaborate on solutions that promote financial stability at local, state, and national levels. This grassroots ALICE movement, led by United Way of Northern New Jersey, has spread to 41 states and the District of Columbia and includes United Ways, corporations, nonprofits, and foundations across the country. For more information, visit: UnitedForALICE.org.