A new study by the United Way says 31-percent of Iowa households are struggling to afford their basic needs.
The finding is part of a United Way-sponsored ALICE report. It stands for Asset-Limited, Income-Constrained, Employed.
The report says 12-percent of Iowans live in poverty and 19-percent cannot afford the basic cost of living in their areas, forcing them to make concessions in areas like food and health care.
Deann Cook of the United Ways of Iowa says many of those struggling are in service sector jobs.
“They’re the person making your lunch, they’re the person cleaning your hotel room, changing oil in your car, serving you at the convenience store—all those sorts of people who are in jobs that are making their communities run but their wages are not keeping pace with the actual cost of living,” she says.
Cook also says federal poverty guidelines don’t accurately reflect the actual cost of living.
“The federal poverty level is significantly lower then what we know it actually takes a family to survive today,” she says.
The federal poverty level for a four-person family is roughly $24,000, but the United Way report estimates the basic cost of living for a four-person family in Iowa is about $47,000.
Cook says the report aims to help the organization allocate resources and give policy makers a clearer picture of living conditions in the state.