In this article, we will look at the 10 states where everyday Americans earn the lowest incomes. We have also discussed the state of salaries in the US in another article. If you are interested in reading about that along with a more extensive list, head straight to the 25 States where Everyday Americans Earn the Lowest Incomes.
10. Tennessee
Annual Median Salary: $39,930
The wage issue in Tennessee remains contentious as the proposal to increase the minimum wage to $20 per hour failed in both House and Senate committees. The minimum wage in the state is currently set at $7.25 per hour.
9. New Mexico
Annual Median Salary: $39,900
Apart from issues of low-income, New Mexico also observes significant mental health challenges. 19% of teenagers in the state report experiencing depressive episodes within a year. Factors such as poverty and childhood trauma contribute to these statistics, according to UNM psychiatrist Dr. Kristina Sowar.
8. South Dakota
Annual Median Salary: $39,870
In South Dakota, Republican lawmakers aim to ban guaranteed basic income programs due to concerns about government dependency. Despite successful pilot programs nationwide, including in Boston and Minneapolis, the bill passed on a party-line vote which restricted future local initiatives. Critics argue such programs undermine work ethic and burden taxpayers.
7. Oklahoma
Annual Median Salary: $39,100
In Oklahoma, the estimated living wage for a single worker is $46,024 which is significantly below the national median income of $57,200. This means many individuals struggle to meet basic expenses.
6. Louisiana
Annual Median Salary: $38,970
In Louisiana, the battle for fair wages and income equality continues to exist even in 2024. With one in five Louisianians living in poverty, the recent rejection of bills to raise the state’s minimum wage has exacerbated the struggle. State senators voted against measures proposed by Democratic Senator Gary Carter, which sought to establish a state minimum wage starting at $10 per hour and gradually increasing to $14 per hour, while also advocating for equal pay for women.
Louisiana is one of the states with the highest resignation rates in the US.
5. South Carolina
Annual Median Salary: $38,870
In South Carolina counties, poverty rates spanned from 8.3% to 36.7% in 2022, with a median of 14.0% which was a 0.5% decrease from 2021. The state has the 5th lowest median income in the country.
4. Alabama
Annual Median Salary: $38,470
In Alabama, income issues persist despite a home price-to-income ratio of 3.7 which is below the national average of 4.7. The median home price is $221,490, while median household income is $59,674. Over the past five years, median home prices have increased by 46.1% which has worsened the burden on mortgage holders as 22.8% spend over 30% of their income on housing.
Alabama is also one of the worst states for workers in the US.
3. West Virginia
Annual Median Salary: $37,770
In West Virginia, the minimum wage has remained stagnant for ages. Delegate Larry Rowe proposed a bill with an aim to raise the state’s minimum wage to $15 by 2028, with an interim increase to $10 this year. However, this bill is still pending in the House Workforce Development Committee.
2. Arkansas
Annual Median Salary: $37,270
Unemployment claims in Arkansas have been observed to decline last week, according to data from the US Department of Labor. Initial filings dropped to 997, down from 1,295 the previous week. These numbers indicate a decrease in layoffs in Arkansas.
1. Mississippi
Annual Median Salary: $36,100
Despite being one of the poorest states in the US, Mississippi’s Medicaid expansion efforts have been stalled due to political discord which leaves behind approximately 74,000 low-income workers without healthcare coverage. With an annual median salary of $36,100, Mississippi is the state where everyday Americans earn the lowest incomes.
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