BALTIMORE, MD—More households in Maryland are struggling to pay their bills and keep up with inflation, according to a new report released by the Maryland United Ways and its research partner United For ALICE.

The report finds that the number of households struggling to get by rose by 29,364 in 2022 compared to 2021. This means that 39% of Maryland households are now living paycheck to paycheck.

The report also finds that the basic cost to live and work in Maryland rose for a family of four with an infant and a preschooler from $97,056 in 2021 to $101,016 a year later in 2022. This is compounded by the loss of up to $15,000 in federal child tax credits and stimulus payments in 2022.

The United Way says that while some wages are rising, inflation and the loss of federal supports are keeping many families struggling.

“There is no doubt, bigger paychecks helped, but inflation and the loss of pandemic supports converged to keep ALICE trapped,” said United Way of Central Maryland CEO Franklyn Baker. “This latest data is a reminder that while we have made some progress, our work is far from over.”

ALICE is a definition of “Asset Limited, Income Constrained, Employed” and includes child care providers, home health aides and cashiers. These are low-wage jobs that often lead to poverty.

The report finds that the number of households in poverty in Maryland has grown by about 1% since the end of the Great Recession in 2021. The Great Recession saw the highest levels of unemployment and poverty in the last 60 years, and today those numbers are slightly above those all-time highs.

Stephanie Hoopes, Ph.D., United For ALICE National Director, says that the data shows that the current system is not working for ALICE households. She says that more needs to be done to help these households, including increasing the number of ALICE households in Maryland.

This article was written with the assistance of AI and reviewed by a human editor.

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