New research zeroes in on households living paycheck to paycheck, yet often with income that’s too high for assistance.
In 2024, 41% of workers in Tennessee’s most common jobs lived in households that couldn’t afford basics, according to new data from United Ways of Tennessee and its research partner United For ALICE.
In 2024, 26% of workers in the 20 most common occupations in Tennessee were in households below the ALICE Threshold. Occupations with a substantial share of workers in households below the threshold included Cooks (51%), Cashiers (50%), and Construction Laborers (43%).
The State of ALICE in Tennessee reveals that traditional measures of poverty have severely undercounted the number of households statewide that are living in financial hardship.
While 13.7% of all households in Tennessee lived in poverty in 2024, the new research shows that 27.6% –twice as many – were ALICE® (Asset Limited, Income Constrained, Employed).
Combined, 41.3% of Tennessee’s households fell below the ALICE Threshold of Financial Survival in 2024.
ALICE households bring in less than the basic costs of housing, child care, food, transportation, health care and technology, plus taxes. Yet because their income is above the Federal Poverty Level, they often don’t qualify for assistance.
“When we fail to fully recognize the number of households facing financial hardship, we also fall short in understanding what communities need to truly thrive,” said Matt Marshall, President & CEO, United Ways of Tennessee. “Families and essential workers can too easily be missed, leaving them without the resources and opportunities they need to stay healthy, build financial stability and reach their full potential. When ALICE is left behind, the whole community feels the impact.”
The crux of the struggle for ALICE families is the gap between wages and expenses. In 2024, a family of four in Tennessee needed $74,580 just to cover the essentials – compared to the Federal Poverty Level of $30,000.
The State of ALICE in Tennessee also reveals that in 2024:
- Tennessee ranked 36th in financial hardship among all 50 states plus the District of Columbia, with one of the nation’s lowest percentages of households struggling to make ends meet.
- Some groups face financial hardship at disproportionate rates, with 66% of the youngest and 50% of the oldest households in Tennessee falling below the ALICE Threshold, compared with 37% of households headed by someone age 25-44.
“ALICE families are especially vulnerable during natural disasters and times of economic uncertainty and yet often feel unseen or left behind,” said Stephanie Hoopes, Ph.D., National Director at United For ALICE. “By providing a name and a way to quantify these households, we’re equipping communities with the data to build solutions that offer better choices and real pathways to stability.”
More state and local data is available through the interactive dashboards on UnitedForALICE.org/Tennessee
