Cost of Louisiana's Basics Rising Faster Than CPI

LAKE CHARLES, LA, June 28 – The cost of six household essentials in Louisiana has risen at a faster rate than inflation, leaving low-wage workers priced out of affording the basics, according to United Way of Southwest Louisiana and its research partner, United For ALICE.

ALICE is an acronym for Asset Limited, Income Constrained, Employed and is most commonly called "the working poor." United Way of Southwest Louisiana uses the results of the ALICE Report to allocate resources and scale new Initiatives to drive transformational change in the five-parish region of Allen, Beauregard, Calcasieu, Cameron and Jeff Davis. To download the full report or learn more about ALICE, see unitedwayswla.org/alice.

Over 15 years, low-wage jobs did not keep up with the increased cost of essentials. Cashiers and retail salespeople, the most common occupations in Louisiana, saw an average $29,800 loss of buying power — more than a full year's earnings, according to findings within the ALICE Essentials Index.

The ALICE Essentials Index tracks the rising cost of essentials, including housing, childcare, food, healthcare, transportation and a basic smartphone plan. In contrast, the CPI (Consumer Product Index) tracks inflation across over 200 categories of goods and services, including luxury items such as power boats and landscaping services. The CPI calculates increases in critical support for low-income families, including Social Security and Medicaid.

According to ALICE calculations, the gulf that grew between wages and the cost of basics affects nearly 905,893 or 51% of Louisiana's households that can't make ends meet. This includes households in poverty and those that are ALICE who earns above the Federal Poverty Level but less than the cost of basics and is ineligible for most private and public assistance.

"The ALICE Essentials Index shows us that families in our region were grappling with a surge in inflation before the rest of us," said Denise Durel, United Way of Southwest Louisiana President and CEO. "We are factoring these insights into delivering better Initiatives and showing our funded partners how our goals and objectives align with this data. It more clearly shows the monthly bills that families struggle to pay than most items in the CPI."

Between 2007 and 2023, the ALICE Essentials Index shows basics rising in price by 59% with projections for 2023. In contrast, inflation — as measured by the national CPI rose 48% during that time.

"ALICE doesn't buy power boats or hire landscapers — ALICE is doing your landscaping," said Stephanie Hoopes, Ph.D., national director for United For ALICE, a U.S. research organization driving solutions to financial hardship. "ALICE is simply trying to afford safe housing and dinner on the table. The Index recognizes this disconnect and provides a new, targeted inflation measure."

United Way of Southwest Louisiana can provide an ALICE presentation and speaker for your organization or business. The information presented will be tailored to your parish or city. Visit UnitedWaySWLA.org/Marketing.

To learn more about ALICE in Southwest Louisiana and to calculate the Household Survival Budget with the essentials for your parish or city, visit UnitedWaySWLA.org/ALICE.

To learn more about the ALICE Essentials Index or explore online dashboards, visit UnitedForALICE.org/Essentials-Index.

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About United Way of Southwest Louisiana

Working with the community and many partners for 84 years, United Way of Southwest Louisiana tackles the critical human services issues facing our five-parish footprint of Allen, Beauregard, Calcasieu, Cameron and Jeff Davis. Our United approach is changing the odds for all children, families and individuals in the community, so we all have the opportunity to succeed. Learn more about our life-changing work at Unitedwayswla.org and follow us on social media @UnitedWayofSWLA

- Operating in the TOP 9% of all U.S. United Ways. –TOP 125 out of 1185 United Ways!
- Maintains a 4-STAR charity rating with Charity Navigator and a PLATINUM SEAL OF TRANSPARENCY with Candid (formerly GuideStar)
- Mackenzie Scott Recipient (1^st year, member of the original #UNITEDWAY46)
- LEPA Award Winner 2022 from Governor’s Office of Homeland Security and Emergency Preparedness for Outstanding Service
- Weather-Ready Nation Ambassador from National Oceanic and Atmospheric Administration

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 27 states and includes United Ways, corporations, nonprofits and foundations in Arkansas, Connecticut, Delaware, Florida, Georgia, Hawai‘i, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Mississippi, New Jersey, New York, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Virginia, Washington, Washington, D.C., West Virginia and Wisconsin; we are United For ALICE. For more information, visit: UnitedForALICE.org.

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