The number of New Jersey households struggling to make ends, but which do not qualify for federal poverty assistance, has reached 1.3 million and continues to rise, bucking the prevailing narrative of a state and national economy in recovery.

An estimated 41 percent of Garden State households are considered among the "working poor", meaning they struggle to afford basic necessities like food, healthcare, transportation and housing, according to a new study by the United Way.

The study, called ALICE (Asset Limited, Income Constrained, Employed), seeks to identify the number of people who earn too much money to qualify for federal poverty assistance, but who otherwise struggle immensely to make ends meet.

It's a problem particularly notable in New Jersey, which, squeezed between New York and Philadelphia, is known for its high taxes and generally crushing cost of living.

Stephanie Hoopes -- one of the founding authors of the study, which began 10 years ago in New Jersey -- said the rate of inflation in the past 10 years has been about 9 percent, but the cost of living for ALICE families has risen by nearly twice that.

"I think we feel that in our communities," Hoopes said. "There's a sense of frustration or even anger because people are being told that they're doing better but they aren't."

The latest iteration of the ALICE project, released Thursday, is the first time United Way has looked at the population nationally. Overall, New Jersey sits in the middle of the pack, slightly below the national estimate of 43 percent.

The data also shows a wide range in New Jersey.

Some counties, like Hunterdon, have less than 30 percent of their population under the ALICE threshold. But more than half of the households in Cumberland, Essex and Passaic counties fall below the line, which in 2016 was approximately a combined income of $64,000 for a household of four.

ALICE families often have no ability to accrue any kind of meaningful savings, Hoopes said, a problem that could spell further trouble down the road.

"A lot of people had their savings wiped out during the recession," Hoopes said. "A lot of people lost their jobs. And we're finding, when they were rehired, it was for less and they've been unable to replenish those savings."

Baby boomers, the nation's largest generation in history, are entering retirement age. And many of their children are struggling just to get out of the home. An analysis by NJ Advance Media in 2016 showed millienials in New Jersey are more likely to live with their parents than in any other state.

"That has effects on the economy, too," Hoopes said. "If you're living in the basement you're not buying a new kitchen set."

A note about the data: The cost-of-living measure is achieved using a compendium of local and national data to analyze how costs in each state differ, rather than using a national model like the Federal Poverty Level. For more, check out the study's methodology).

Stephen Stirling may be reached at sstirling@njadvancemedia.com. Follow him on Twitter @sstirling. Find him on Facebook.