In the United States, the median annual wage for workers is about $48,080 according to data from the Bureau of Labor Statistics. However, in the three states with the lowest median annual wages, the number falls below $40,000. Notably, the majority of the 10 lowest-earning states are located in the South. Mississippi stands out as the state with the lowest-earning population, with a median annual wage of just $37,500. This can be attributed to the state having one of the least-educated populations in the country, with only 1 in 4 adults holding a bachelor’s degree or higher.
The correlation between education and earnings is evident in the data, with Massachusetts being the highest-paid state due to nearly 47% of its population holding a bachelor’s degree or higher. A well-educated workforce can attract businesses and boost economic activity in a region, contributing to higher wages. On the contrary, Mississippi ranks poorly in terms of business attractiveness, according to CNBC. These factors contribute to the state’s low median annual wage and economic performance.
Despite the low incomes in these states, the cost of living is relatively cheap compared to the rest of the country. Oklahoma is ranked as the state with the lowest cost of living, with Mississippi following closely behind. However, New Mexico and South Carolina, although having low median annual wages, do not align with the trend of low cost of living. New Mexico ranks 20th lowest in terms of cost of living, while South Carolina falls in the middle of all states according to the Missouri Economic Research and Information Center’s analysis.
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