More than half of Louisiana households were not financially prepared for economic crisis of pandemic

Before the pandemic, more than one in three Louisiana working households were financially vulnerable and classified as ALICE: Asset Limited, Income Constrained, Employed.  A new report from the Louisiana Association of United Ways shows just how many people were not financially prepared for the pandemic.

“When you add the 18% of people living in poverty, it is right over half of our state households and population that falls within this category,” said Louisiana Association of United Ways President Sarah Berthelot.

Berthelot says the economic crisis that accompanied the pandemic has made ALICE workers have to make tough decisions between necessities.

“They can’t afford the price tag of each of those basics and so they are unable to get ahead, they are unable to save for a rainy day, or anticipate an unanticipated job loss,” said Berthelot.

The research estimates over half of Louisiana’s ALICE workers lost work because of the pandemic.

Berthelot hopes the research can be used by charitable organizations to help direct assistance and by policymakers to guide decisions to increase wages for ALICE workers.

“We know that we can help ALICE by increasing their work skills, by building their skills so that they can increase their wage for work that is needed in our economy that is in high demand,” said Berthelot.