Report: 40 percent of CT households struggling to meet basic necessities

Forty percent of Connecticut households are managing on incomes that are below the level needed to pay for basic necessities, according to a new report issued by United Way of Connecticut.

While 55 percent of Connecticut jobs pay $20 per hour or more, almost half of the state”™s households lack the savings needed to cover three months of living expenses. United Way reported that at least 10 percent of households in every Connecticut city and town are ALICE (Asset Limited, Income Constrained, Employed) households, where the adults in the family are working but are facing difficulty in meeting a basic household survival budget. United Way, which analyzed 2016 data for its report, also concluded that 30 percent of Connecticut households have earnings above the federal poverty line but under the ALICE threshold.

Furthermore, the new report determined that it costs approximately $78,000 a year for a family of four with one infant and one toddler to afford the basic needs of a household survival budget that includes housing, food, health care, child care, transportation and technology. United Way noted that the cost of living in Connecticut rose by 14 percent between 2007 and 2014, with child care and housing absorbing nearly half of the average ALICE families”™ household budget.

The United Way report also warned that the rise of the gig economy has fueled economic uncertainty for many Connecticut households. “While these on-demand positions may create new employment opportunities, they offer ALICE workers limited job security, no benefits, fluctuating hours and unreliable wages,” the report stated.