SHREVEPORT, La. — The cost of basic household necessities in Louisiana increased faster than overall inflation between 2007 and 2024, contributing to growing financial strain for hundreds of thousands of working households, according to a new report released by United For ALICE in partnership with United Way of Northwest Louisiana.
The latest State of ALICE report found that Louisiana’s ALICE Essentials Index, which tracks the costs of housing, child care, food, transportation, health care and technology, rose 70% during the 17-year period. By comparison, the Consumer Price Index increased 52% over the same timeframe.
The report focuses on households classified as ALICE, or Asset Limited, Income Constrained, Employed. These households earn more than the federal poverty level but do not make enough to cover basic living expenses. In 2024, Louisiana had 548,775 ALICE households.
When combined with households living below the federal poverty line, 49% of Louisiana households fell below the ALICE Threshold of Financial Survival in 2024, according to the report. In Northwest Louisiana, the figure reached 52%.
United Way of Northwest Louisiana President and CEO LaToria W. Thomas said the findings reflect the difficult financial decisions many families face as living costs continue to rise.
The report identified a widening gap between wages and essential expenses. In 2024, a family of four in Louisiana required $81,912 annually to meet basic household needs, nearly three times the federal poverty level of $31,200. A household supported by two full-time workers employed in common occupations such as cook and bank teller would still fall $24,042 short of covering those costs, the report found.
Louisiana ranked 51st among the 50 states and the District of Columbia for financial hardship, according to the report, reflecting one of the nation’s highest shares of households struggling to meet basic expenses.
ALICE households were represented across all major industries in the state. The highest rates of financial hardship were reported in the accommodation and food services sector at 52%, followed by other services excluding public administration at 40% and retail trade at 38%.
The report also found that poverty rates in Louisiana have remained relatively stable since 2010, while the number of ALICE households has generally increased despite periodic fluctuations.
Minimum-wage workers in Louisiana earned $7.25 per hour in 2024. According to the report, that wage was insufficient for a full-time worker with one school-age child to meet the ALICE Household Survival Budget in any parish in the state.
Stephanie Hoopes, national director of United For ALICE, said the data shows affordability challenges have persisted for years and leave many households vulnerable to increases in everyday expenses such as fuel and utilities.
United For ALICE is a national research organization that studies financial hardship among working households. The organization works with United Ways and other partners across 41 states and the District of Columbia to develop data and policy recommendations aimed at improving financial stability.
United Way of Northwest Louisiana serves 10 parishes and focuses on initiatives related to community resilience, health, youth opportunity and financial security.