Workers in the U.S. earn a median annual wage of around $48,080, but in the bottom three states, the median annual wage falls below $40,000. The majority of the lowest-earning states are located in the South. Mississippi has the lowest-earning population in the country, with a median annual wage of $37,500. This is in part due to the state’s low educational attainment, with only 1 in 4 adults holding a bachelor’s degree or higher. Conversely, Massachusetts, the most-educated state with nearly 47% of its population holding a bachelor’s degree or higher, is also the highest-paid state.
Having a well-educated workforce can attract businesses and boost economic activity, contributing to higher wages. Despite having low median wages, most of the states at the bottom of the list have a relatively cheap cost of living. Oklahoma is ranked as having the cheapest cost of living, followed by Mississippi. However, New Mexico and South Carolina are outliers as they rank higher in terms of cost of living compared to the other low-wage states.
It is important to note that higher education generally leads to higher earnings, which can help individuals increase their income levels. States with a more educated population tend to have higher wages overall. Mississippi, which ranks among the worst states for business, according to CNBC, could potentially benefit from investing in education and workforce development to attract more businesses and improve economic conditions.
Despite the low median annual wages in these states, individuals looking to boost their income can explore opportunities for passive income. CNBC offers an online course on How to Earn Passive Income Online, which provides information on common passive income streams, tips to get started, and real-life success stories. Additionally, signing up for CNBC Make It’s newsletter can provide valuable tips and tricks for success in work, money, and life.
In conclusion, the lowest-earning states in the U.S. tend to be located in the South, with Mississippi having the lowest median annual wage. These states also tend to have a lower cost of living, making them more affordable for residents. Investing in education and workforce development could help improve economic conditions and attract businesses, leading to higher wages. Individuals can explore opportunities for passive income to supplement their earnings, with resources available through CNBC’s online course and newsletter for success tips.
