Understanding the ALICE Threshold is only half the story. The other half is the reality of our local job market in Southeast Iowa. While “Help Wanted” signs are everywhere, they rarely point to a path out of financial hardship. For many of our neighbors, the math simply doesn’t add up: housing costs in Iowa have surged by 170% since 2010, yet the local “entry-level” landscape hasn’t kept pace.
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The data reveals a staggering gap between the jobs available and the jobs that actually pay a living wage. In a recent analysis of positions within 50 miles of Burlington, we found that while thousands of roles are posted, only a tiny fraction—roughly 0.25%—are full-time positions that require no prior experience. The remaining “stable” jobs often require specific certifications, advanced degrees, or specialized licensing that ALICE families cannot afford to obtain while living paycheck to paycheck. This creates a systemic “experience trap” that locks hardworking Iowans out of the very stability they are trying to reach.
In 2023, according to the Federal Poverty Level (FPL), 11% of Iowa households were financially insecure. Yet this measure failed to account for an additional 25% of households that were also experiencing financial hardship. These households are ALICE: Asset Limited, Income Constrained, Employed — with income above the FPL, but not enough to afford basic expenses in the county where they live.
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Between ALICE households and those living in poverty, an estimated 37% of households in Iowa were below the ALICE Threshold in 2023. Households below the Threshold are forced to make impossible choices — like deciding whether to pay for utilities or a car repair, whether to buy food or fill a prescription.
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Households below the ALICE Threshold are in every state and county across the U.S. and represent all demographic groups. Workers below the ALICE Threshold often perform the jobs that keep our economy functioning smoothly — they are child care providers, food service workers, cashiers, personal care aides, delivery drivers, and more. Their stories capture the systemic and structural barriers to financial stability, and the struggles and resilience of families experiencing financial hardship.
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As we go about our day and look to the months ahead, we ask our friends and neighbors to imagine for a moment what life would be like if you were unsure of how you were going to pay your rent, mortgage or utility bills next month. This is an everyday reality for our ALICE neighbors.
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The ALICEÂ Lives Here initiative is one of the United Way of Southeast Iowa’s strategic programs established to address the issues of inequity in our systems for employment, education, health and food access, financial stability, and opportunities for all to grow to the best of their abilities. We realize that these issues will not change unless we, as a community, do the work to make the Southeast Iowa Area a better place to live for all residents. And we truly believe that when none are ignored, all will thrive.
ALICE is a United Way acronym that stands for Asset Limited, Income Constrained, Employed, representing a large portion of community members who are working but struggling to make ends meet.
ALICE (Asset Limited, Income Constrained, Employed) households earn above the Federal Poverty Level, yet they are not eligible for assistance and can’t afford the basic household necessities, including housing, child care, food, transportation, and health care.
Over 6,000 households in our region are Asset Limited, Income Constrained, Employed.