Poverty in America is improving and so is the average household income, data shows.
In 2017, a typical household would bring home an income of $61,423 but in 2018 that number rose to $61,937, according to according to a report by 24/7 Wall St. The poverty rate also jumped to 13.4% from 13% but what does this mean?
At surface level, the data paints a positive picture but dig a little deeper and things are not that simple. The median household income was reported in 14 states but this figure varies greatly. In many states, families live on less than $50,000 a year while in others, households earn at least $75,000.
To get a clearer indication of the richest and poorest states in America, various other aspects need to be considered. Such as education attainment, which is a strong determining factor for income, as well as unemployment rates.
What 24/7 Wall St. noted was that job availability is far scarcer in the poorest states in America while workers in the richest states in America tend to be college-educated. These findings offer a glimpse into life of the average family and how that varies according to where they are based. We take a look at 24/7 Wall St.'s survey to determine the five richest and poorest states in America:
Richest states in America:
5. Connecticut
- Median household income: $76,348 (2018); $75,947 (2017)
- Bachelor’s degree attainment: 39.6% (2018); 38.7% (2017)
- Poverty rate: 10.4% (2018); 9.6% (2017)
- Unemployment: 4.1% (2018); 4.7% (2017)
4. Massachusetts
- Median household income: $79,835 (2018); $79,371 (2017)
- Bachelor’s degree attainment: 44.5% (2018); 43.4% (2017)
- Poverty rate: 10.0% (2018); 10.5% (2017)
- Unemployment: 3.3% (2018); 3.8% (2017)
3. Hawaii
- Median household income: $80,212 (2018); $79,648 (2017)
- Bachelor’s degree attainment: 33.5% (2018); 32.9% (2017)
- Poverty rate: 8.8% (2018); 9.5% (2017)
- Unemployment: 2.4% (2018); 2.4% (2017)
2. New Jersey
- Median household income: $81,740 (2018); $81,763 (2017)
- Bachelor’s degree attainment: 40.8% (2018); 39.7% (2017)
- Poverty rate: 9.5% (2018); 10.0% (2017)
- Unemployment: 4.1% (2018); 4.6% (2017)
1. Maryland
- Median household income: $83,242 (2018); $82,747 (2017)
- Bachelor’s degree attainment: 40.8% (2018); 39.7% (2017)
- Poverty rate: 9.0% (2018); 9.3% (2017)
- Unemployment: 3.9% (2018); 4.3% (2017)
Poorest states in America:
5. Louisiana
- Median household income: $47,905 (2018); $47,050 (2017)
- Bachelor’s degree attainment: 24.3% (2018); 23.8% (2017)
- Poverty rate: 18.6% (2018); 19.7% (2017)
- Unemployment: 4.9% (2018); 5.1% (2017)
4. New Mexico
- Median household income: $47,169 (2018); $47,646 (2017)
- Bachelor’s degree attainment: 27.7% (2018); 27.1% (2017)
- Poverty rate: 19.5% (2018); 19.7% (2017)
- Unemployment: 4.9% (2018); 5.9% (2017)
3. Arkansas
- Median household income: $47,062 (2018); $46,859 (2017)
- Bachelor’s degree attainment: 23.3% (2018); 23.4% (2017)
- Poverty rate: 17.2% (2018); 16.4% (2017)
- Unemployment: 3.7% (2018); 3.7% (2017)
2. Mississippi
- Median household income: $44,717 (2018); $44,604 (2017)
- Bachelor’s degree attainment: 23.2% (2018); 21.9% (2017)
- Poverty rate: 19.7% (2018); 19.8% (2017)
- Unemployment: 4.8% (2018); 5.1% (2017)
1. West Virginia
- Median household income: $44,097 (2018); $44,587 (2017)
- Bachelor’s degree attainment: 21.3% (2018); 20.2% (2017)
- Poverty rate: 17.8% (2018); 19.1% (2017)
- Unemployment: 5.3% (2018); 5.2% (2017)