10 Bridging <strong>the</strong> Gap
CHAPTER 1Alabama’s Low-IncomeWorking Families: Caught in <strong>the</strong> GapThe vast majority <strong>of</strong> <strong>families</strong> in Alabama have members who go to workeach day, pulling <strong>the</strong>ir own weight <strong>and</strong> contributing to <strong>the</strong>ir local economies.However, for many <strong>of</strong> <strong>the</strong>se <strong>families</strong>, honest, full-time labor failsto provide even <strong>the</strong> security <strong>of</strong> a stable food supply <strong>and</strong> a decent place tolive, much less <strong>the</strong> opportunity to get ahead. In 2005, nearly 36 percent<strong>of</strong> <strong>families</strong> with children included workers whostruggled to make ends meet. 2 As fuel prices rise,along with <strong>the</strong> costs <strong>of</strong> groceries, clothing, childcare, health care <strong>and</strong> o<strong>the</strong>r necessities, many <strong>families</strong>simply don’t earn enough to cover <strong>the</strong> basiccosts <strong>of</strong> living. A number <strong>of</strong> factors contribute to<strong>the</strong> chronically high proportion <strong>of</strong> low-income<strong>working</strong> <strong>families</strong> in Alabama.Even though Alabama has become increasinglyurban in recent decades, <strong>the</strong> state continues tohave tremendous gaps in population density. In46 <strong>of</strong> 67 counties, more than half <strong>of</strong> <strong>the</strong> residentslive in a rural area. 3 Many <strong>of</strong> <strong>the</strong>se predominantlyrural counties have not fared well in recent years,seeing a significant loss <strong>of</strong> manufacturing jobs tooverseas relocations. In some rural areas, <strong>the</strong> civilianpopulation has been aging out <strong>of</strong> <strong>the</strong> workforcewhile younger workers move away.These factors <strong>and</strong> o<strong>the</strong>rs will continue to challengepolicymakers in Alabama as <strong>the</strong>y attempt to bridge<strong>the</strong>se gaps <strong>and</strong> bring <strong>economic</strong> growth to all segments<strong>of</strong> <strong>the</strong> population.Who are Alabama’s low-income <strong>working</strong> <strong>families</strong>?They are <strong>the</strong> moms <strong>and</strong> dads who h<strong>and</strong>le our purchasesat <strong>the</strong> local convenience store, who change<strong>the</strong> oil in our automobiles, who clean our <strong>of</strong>ficebuildings <strong>and</strong> hotel rooms, who fill our orders at <strong>the</strong>fast-food restaurant. And <strong>the</strong>y are <strong>the</strong> children <strong>the</strong>separents work hard to support. They are our neighbors,friends, fellow citizens committed to <strong>the</strong>ir<strong>families</strong> <strong>and</strong> <strong>the</strong>ir communities. Faced with stagnatingwages, widening income inequality <strong>and</strong> soaringbasic costs, <strong>the</strong>y are finding it increasingly difficultto achieve <strong>and</strong> maintain <strong>economic</strong> security.While many <strong>of</strong> us may have a general idea <strong>of</strong> whatconstitutes a <strong>working</strong> family, this report uses <strong>the</strong>following definitions:Family – a married-couple or single-parent primaryhousehold with at least one child under age 18.Working family – a family in which all related membersage 15 <strong>and</strong> over have ei<strong>the</strong>r a combined workeffort <strong>of</strong> 39 or more weeks in <strong>the</strong> last 12 months ora combined work effort <strong>of</strong> at least 26 weeks <strong>and</strong>one unemployed parent actively looking for workwithin <strong>the</strong> past four weeks.Low-income <strong>working</strong> family – a family with anannual income <strong>of</strong> less than 200 percent <strong>of</strong> <strong>the</strong> federalpoverty threshold. For a family <strong>of</strong> four in 2005,<strong>the</strong> low-income threshold was $39,942.By <strong>the</strong> definition cited above, more than onethird<strong>of</strong> all Alabama <strong>working</strong> <strong>families</strong> — almost200,000 households with children — are consideredlow-income. In 37 <strong>of</strong> <strong>the</strong> state’s 67 counties,individuals with incomes below 200 percent <strong>of</strong>Alabama’s Working Families 11