Even with steady employment, thousands of households in Itasca County continue to face financial hardship. According to the newly released State of ALICE in Minnesota report, 40% of households in the county lived below the ALICE Threshold in 2023—including 13% in poverty and 27% defined as ALICE (Asset Limited, Income Constrained, Employed).

These households earn above the federal poverty level but still can’t afford basic necessities like housing, food, childcare, healthcare, and transportation. Because they don’t qualify for many forms of public assistance, they are often left without the support needed to achieve financial stability.

Statewide, the report reveals that 34% of Minnesota households were below the ALICE Threshold in 2023, highlighting the ongoing gap between wages and the cost of living. That includes 9% of households in poverty and 25% ALICE—nearly three times the poverty rate.

“Updated point-in-time data is critical to understanding whether we are making a difference in stabilizing lives,” said Doris Pagelkopf, Executive Director of United Ways of Minnesota. “When we underestimate how many households are struggling, we underestimate what it truly takes to build thriving communities.”

In Itasca County, median household income was $66,380 in 2023—far below the state average of $85,086. The county’s labor force participation rate was also significantly lower at 55.2%, compared to 68.4% statewide. Meanwhile, the monthly survival budget for a family of four in Itasca County rose to $6,844, up from $6,537 in 2022. That includes increased costs in housing (up to $1,054/month from $885) and childcare (up to $1,646/month from $1,479).

These rising costs continue to outpace wage growth, creating a widening gap for working families. Even dual-income households with both parents employed in common occupations are falling short of what it takes to live and work in the region.

Across Minnesota, certain populations are disproportionately affected. Younger (<25) and older (65+) households experience financial hardship at significantly higher rates, along with households of color, single-parent families, and renters. Among households below the ALICE Threshold, 71% of renters and 56% of homeowners are housing burdened, spending over 30% of their income on housing costs.

“ALICE families are essential to the fabric of our communities, yet they’re often invisible when it comes to public policy and program design,” said Kim Brink Smith, Executive Director of United Way of 1000 Lakes. “This data equips us with the insight to act—and the responsibility to do better.”

United Way of 1000 Lakes is using this updated data to engage local leaders, employers, and service providers in creating solutions that reflect the real cost of living and help households achieve long-term stability.

To explore the report and access local dashboards, visit: uwlakes.org/alice