Many are not in poverty as defined by the federal government, but face hard financial times.
Frederick, Md (KM) Working individuals and working families are still falling short in Maryland. Data from the United Way of Frederick County says 29 percent of persons employed in some of the more common jobs live in households the can’t afford the basics such as food, rent, medical expenses and other needs. “In the state of Maryland, about 39 percent of households are unable to afford a basic cost of living,” says Ken Oldham, President and CEO of the local United Way. “And that’s breaking down into two general categories, and that’s about ten percent below the federal poverty line.”
Oldham says for a single individual, that’s over $14,580 annually..
The other 29 percent of households in Maryland are above the federal poverty line, but are classified as ALICE households. ALICE stands for Asset Limited, Income Constrained, and Employed. That means they have jobs, but they don’t pay enough to make ends meet.
In Frederick County, the United Way says six percent of residents live below the poverty line, and 27 percent are classified as ALICE households. “We’re better than most counties in the state of Maryland. But that doesn’t mean that we don’t have work to do,” says Oldham. “At the end of the day, we have 33 percent of our neighbors who are really struggling every day and making very difficult decisions on whether to pay their rent, their electric bill., their health care.”
He says many of them have common jobs. “You’re looking at warehouse jobs, trash collectors, retail workers. Those jobs that we depend on every day of our lives; waiters and waitresses.”
Oldham also says the situation is even worse with single parent households. “Forty-seven percent of single fathers are unable to afford a basic cost of living,” he says. “Tragically, when we’re talking about single female heads of households with children—the single mothers—that number jumps to 76 percent.”
The reasons for families living below the cost of living include “the combination of having a low paying job, or a job that’s below that basic cost of living, paying less than the basic cost of living, and the cost of the community itself,” says Oldham.
He also says keeping a roof over their heads is a big expense, particularly in for some people in Frederick. “You’re looking at rents and mortgages that are fairly high. We have the fastest growing community in the state. For the last few years, there’s been a high demand for property, {and} a high demand for rental units which starts to skyrocket,” says Oldham.
These statistics cover 2023, the most recent compiled by the United Way of Frederick County, and partner, United For ALICE.
Other key points from the recent data show that Maryland is ranked 21st in financial hardship among all of the 50 states and the District of Columbia. Some groups that are facing financial hardship at disproportionate rates. with 85 percent of the youngest and 43 percent of the oldest heads of household in Frederick County falling below the ALICE Threshold in 2023, compared to households headed by someone 25 to 44 years of age.
By Kevin McManus