EMBARGOED UNTIL 2PM ON JUNE 18, 2020
ALOHA UNITED WAY RELEASES NEW ALICE® REPORT AND PROJECTED COVID-19 IMPACT ON ALICE HOUSEHOLDS TO ASSIST WITH STATE’S RECOVERY PLANS Hawaii’s ALICE® Population Could Increase by 35,000 Households in the Wake of COVID-19 HONOLULU, HAWAII – June 18, 2020 – Today Aloha United Way (AUW) released its “2020 ALICE in Hawaii: A Financial Hardship Study.” The report was again sponsored by AUW partners: Bank of Hawaii Foundation, Hawaii Community Foundation and Kamehameha Schools. The 2020 AUW ALICE® Report indicates there has been no improvement since 2010 in the number of ALICE in Hawaii despite steady economic improvements according to traditional measures. Hawaii’s unemployment fell to record lows, GDP grew and wages rose slightly over the past two years (preCOVID-19). Yet eight years after the end of the Great Recession, 42* percent (190,390 households) of Hawaii’s 455,138 households still struggle to make ends meet. The 2020 AUW ALICE Report shows three critical trends in Hawaii pre-COVID-19: 1. The cost of living is increasing for ALICE households. The cost of household essentials (housing, child care, food, transportation, health care, phone and taxes) is rising faster than the cost of other goods and services. 2. Worker vulnerability is growing while wages stagnate in ALICE jobs. The only growth is concentrated in low-wage jobs with no growth in mid- and high-wage jobs that pay a living wage. 3. The number of ALICE households is on the rise. While the number of households in poverty has remained relatively flat from 2007 to 2018, the number of ALICE households has continued to increase as a result of rising costs and stagnant wages. The COVID-19 pandemic has unveiled and exacerbated economic disparities because of the vulnerabilities identified in the ALICE Reports. AUW 211 helpline calls immediately increased and are now stabilized at a volume of 600 percent more than pre-COVID-19. The top three requests for assistance are housing/shelter, healthcare and employment/income, which align with the trends identified in the latest ALICE Report. AUW partnered with Hawaii Data Collaborative to estimate the potential impact in the near and longer term to help guide the state’s recovery plan. HDC modeling estimates that, without intervention, the sudden economic shock that resulted from measures implemented to mitigate the spread of COVID-19 increased the percent of ALICE and below households to 59 percent from 42 percent pre-COVID-19. That represents an additional 78,000 vulnerable households on top of the 190,390 that were already -more-
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struggling. State unemployment benefits and CARES Act funds are keeping most of these households afloat for now. However, by the end of 2020, as the “new normal” COVID-19 economy stabilizes, Hawaii could see 35,000 or more additional households (225,000 total) in an ALICE or below situation. “We will not understand the full extent of the economic burdens COVID-19 has placed on individuals, families and communities for quite some time as this situation is still unfolding,” said John Fink, AUW President and CEO. “The data projections help us to better anticipate our community needs, determine necessary financial support, and work with partner nonprofit agencies to provide critical services quickly. The demand is greater than ever to help those who have been struggling and those who now find themselves in this new position of needing assistance due to these unforeseen circumstances. It’s not just about shelter and food, looking ahead, but also about medical issues, including mental health, education, vocational training, and access to health care and child care.” “ALICE individuals and families now constitute more than half of Hawaii’s population, and growing. It is essential to the well-being of our state that we recognize the systemic issues, acknowledge the struggles, and work across sectors to tackle the root causes to create sustainable, long-term solutions,” said Lisa Kimura, AUW, Vice President, Community Impact. “When ALICE struggles, we are all impacted. The new report outlines the vulnerabilities of many workers and industries in Hawaii and the pandemic has quickly highlighted the reality. Creating opportunities for economic mobility and education, while building a workforce that reduces disparities and supports basic human needs, is the key to ensuring a healthy path forward for working households in Hawaii.” The AUW ALICE Report provides a framework, language, statistics, and tools that community stakeholders can use to inform policy and drive innovation to gain a better understanding of this growing population, especially as Hawaii navigates the road to recovery in the wake of the COVID pandemic. The report has galvanized the community and is a call to action to inform statewide policy, philanthropy and allocation of resources. *The 2020 Aloha United Way ALICE Report has improved methodology. Please refer to “ALICE Improved Methodology.” About ALICE (Asset Limited, Income Constrained, Employed) ALICE are people working, doing everything they can to make ends meet yet struggle to get by each month. Pre-COVID-19, 33 percent of Hawaii’s population was living just above the federal poverty level and are often unable to survive even a minor financial challenge. There are few substantial programs in place to help or prevent ALICE from slipping into poverty. An additional nine percent are in poverty. For more information and to view of a copy of the full report, visit https://www.auw.org/alice-studyfinancial-hardship-hawaii-new. -more-
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About Aloha United Way Founded in 1919, Aloha United Way brings resources, organizations and businesses together to advance the health, education and financial stability of every person in our community. A member of United Way Worldwide, AUW supports nonprofits and communities on Oahu. For more information, visit AUW.org. ###
CONTACT
Maura Dolormente Vice President, Marketing and Communications C: (808) 778-0422 E: mdolormente@auw.org