ALICE OVER TIME The one-two punch of Hurricane Katrina in August 2005 followed by Hurricane Rita in September and then the Great Recession of 2007 to 2010 took a severe economic toll on Louisiana that dramatically shaped household demographics. In the year after the 2005 hurricanes, residents began returning to the state, and from 2007 to 2013, the total number of households in Louisiana increased by 8 percent, from 1,597,111 in 2007 to 1,685,303 in 2010, and to 1,730,059 in 2013. The hurricanes and the Recession had the biggest impact on those below the Federal Poverty Level, with the number of households in poverty increasing by 3 percent from 2007 to 2010 and then by another 11 percent from 2010 to 2013. For ALICE households, the number increased by 8 percent through the Great Recession and then decreased 3 percent from 2010 to 2013. The corresponding rise in the poverty numbers suggests that many ALICE families moved below the Federal Poverty Level during this period, though the number of households above the ALICE Threshold also increased throughout the period, by 8 percent, with some ALICE families moving above the Threshold (Figure 2).
Figure 2. Households by Income, Louisiana, 2007 to 2013
Households (in thousands)
“The one-two punch of Hurricane Katrina in August 2005 followed by Hurricane Rita in September and then the Great Recession of 2007 to 2010 took a severe economic toll on Louisiana that dramatically shaped household demographics.”
Though these statistics don’t fully capture fluidity, it is important to note that households move above and below the ALICE Threshold over time as economic and personal circumstances change. Nationally, the U.S. Census reports that from January 2009 to December 2011, 31.6 percent of the U.S. population was in poverty for at least two months. By comparison, the national poverty rate for 2010 was 15 percent (Edwards, 2014). Household income is fluid, and ALICE households may be alternately in poverty or more financially secure at different points during the year.
UNITED WAY ALICE REPORT – LOUISIANA
Source: American Community Survey, 2013, and the ALICE Threshold, 2013
Published on Jan 26, 2016