Poverty in the US 2025
The landscape of poverty across the United States continues to reveal significant disparities between states, with economic hardship concentrating in specific regions despite overall national economic recovery efforts. The Current Population Survey Annual Social and Economic Supplement reports the official poverty rate in 2023 was 11.1%, not statistically different from 2022. However, this national average masks the stark reality that some states experience poverty rates nearly double the national figure, while others maintain rates below 7%.
Understanding which states struggle most with poverty requires examining multiple interconnected factors that create and perpetuate economic disadvantage. The poorest states in the US 2025 face challenges spanning education, healthcare access, employment opportunities, and historical economic structures that have proven difficult to overcome. These disparities reflect deeper systemic issues including geographic isolation, industrial decline, and limited investment in infrastructure and human capital development.
Interesting Stats & Facts about Poorest States in the US 2025
| Poverty Facts Category | Key Statistics | Notable Details |
|---|---|---|
| Highest Poverty Rate | Mississippi: 19.3% | Nearly double the national average |
| Lowest Poverty Rate | New Hampshire: 6.9% | Less than half the national average |
| Regional Pattern | Southern states dominate top 10 | Historical agricultural economies |
| Education Impact | Mississippi: 85.3% high school graduation | Below national average |
| Income Disparity | New Mexico: $51,243 median income | Significant gap from wealthy states |
| Unemployment Correlation | National rate: 4.2% (July 2025) | Varies significantly by state |
| Geographic Concentration | Midwest has no states in top 10 | Poverty clusters in South and West |
| Cost of Living Factor | Lower costs in poorest states | Provides some economic relief |
The data reveals compelling patterns about economic disadvantage across American states. Southern states struggle the most, with the highest poverty rates observed in Mississippi (19.3%), Louisiana (18.6%), and New Mexico (18.1%). These statistics represent millions of Americans facing daily economic challenges, from securing adequate housing to accessing quality healthcare and educational opportunities.
What makes these statistics particularly significant is their persistence over time. Many of the states appearing on today’s lists have maintained similar rankings for decades, suggesting structural economic challenges that require comprehensive, long-term solutions rather than quick fixes. The concentration of poverty in specific regions also highlights how geographic factors, historical economic development patterns, and policy decisions compound to create lasting disadvantage.
Poorest States in the US
| Rank | State | Poverty Rate (%) | Median Household Income | Population Below Poverty Line |
|---|---|---|---|---|
| 1 | Mississippi | 19.3% | $45,792 | 570,000+ |
| 2 | Louisiana | 18.6% | $49,973 | 860,000+ |
| 3 | New Mexico | 18.1% | $51,243 | 380,000+ |
| 4 | West Virginia | 17.9% | $48,850 | 320,000+ |
| 5 | Kentucky | 16.5% | $52,238 | 735,000+ |
| 6 | Arkansas | 16.2% | $49,475 | 490,000+ |
| 7 | Alabama | 15.7% | $52,035 | 785,000+ |
| 8 | Oklahoma | 15.6% | $53,840 | 620,000+ |
| 9 | Tennessee | 14.9% | $54,833 | 1,020,000+ |
| 10 | South Carolina | 14.7% | $54,864 | 760,000+ |
The top 10 poorest states in the US 2025 demonstrate clear regional clustering, with nine of the ten states located in the South or Southwest. Mississippi continues to lead this unfortunate ranking, maintaining its position as the state with the highest poverty rate for multiple consecutive years. The state’s 19.3% poverty rate means that nearly one in five residents lives below the federal poverty line, creating widespread challenges for communities, schools, and local economies.
1. Mississippi – Leading the poverty rankings with 19.3% of residents below the poverty line, Mississippi struggles with rural isolation and limited industrial diversification. The state’s agricultural heritage hasn’t translated into sustainable economic growth. Educational challenges persist with only 85.3% high school graduation rates. Healthcare access remains problematic, particularly in rural areas where hospital closures have become common. The median household income of $45,792 reflects deep structural economic challenges that require comprehensive policy interventions and sustained investment in education and infrastructure development.
2. Louisiana – With 18.6% poverty rate, Louisiana faces unique challenges from natural disasters and economic transition. The state’s economy heavily depends on oil, petrochemicals, and agriculture, sectors vulnerable to market volatility. Hurricane damage regularly disrupts communities and economic activity. Educational performance lags national averages, while healthcare access issues persist in rural parishes. The $49,973 median income reflects ongoing recovery challenges and the need for economic diversification beyond traditional industries.
3. New Mexico – Recording 18.1% poverty, New Mexico experiences challenges from rural geography and limited economic opportunities outside major cities. Native American populations face disproportionate poverty rates. The state’s vast rural areas struggle with infrastructure limitations and job scarcity. Educational outcomes vary dramatically between urban and rural districts. Healthcare access is complicated by geographic distances and provider shortages. Despite federal employment opportunities, the $51,243 median income indicates persistent economic challenges across diverse communities.
4. West Virginia – With 17.9% poverty rate, West Virginia represents the classic case of economic transition challenges. The decline of coal mining has devastated communities without adequate replacement industries. Geographic isolation limits economic development opportunities. Educational attainment rates remain below national averages, affecting workforce development. Healthcare challenges include provider shortages and limited access to specialized services. The $48,850 median income reflects the ongoing struggle to diversify the economy beyond traditional extractive industries.
5. Kentucky – Experiencing 16.5% poverty, Kentucky faces similar coal industry decline challenges as West Virginia. Rural communities struggle with limited economic opportunities and outmigration of young people. Educational performance varies significantly between urban and rural areas. Healthcare access issues include provider shortages and limited mental health services. Agricultural communities face market pressures and climate challenges. The $52,238 median income indicates modest improvement efforts but continued structural economic challenges requiring sustained intervention.
6. Arkansas – With 16.2% poverty rate, Arkansas combines agricultural challenges with limited urban economic development. Rural communities face job scarcity and infrastructure limitations. Educational outcomes lag national standards, affecting workforce competitiveness. Healthcare access varies dramatically between urban centers and rural areas. The state’s economy depends heavily on agriculture and manufacturing, both subject to market volatility. The $49,475 median income reflects ongoing efforts to attract diverse industries while addressing rural development needs.
7. Alabama – Recording 15.7% poverty, Alabama shows both industrial potential and persistent rural challenges. Urban areas like Birmingham and Huntsville demonstrate economic growth, while rural counties struggle with limited opportunities. Educational disparities exist between urban and rural districts. Healthcare access improvements continue, but rural hospitals face financial pressures. Manufacturing growth provides some economic stability, but agricultural communities still face challenges. The $52,035 median income reflects mixed economic conditions across diverse geographic regions.
8. Oklahoma – With 15.6% poverty rate, Oklahoma experiences economic volatility tied to oil and agricultural markets. Rural communities face population decline and limited economic diversification. Educational performance shows improvement but remains below national averages in many districts. Healthcare access challenges include provider shortages in rural areas. Native American communities face disproportionate poverty challenges. The $53,840 median income indicates moderate economic conditions but continued vulnerability to commodity price fluctuations.
9. Tennessee – Experiencing 14.9% poverty, Tennessee demonstrates regional economic disparities between urban centers like Nashville and rural areas. Manufacturing growth provides economic opportunities in some regions while rural communities struggle. Educational outcomes vary significantly across the state. Healthcare access improvements continue, but rural areas face provider shortages. Tourism contributes to economic activity in certain regions. The $54,833 median income reflects ongoing economic development efforts and diversification initiatives.
10. South Carolina – With 14.7% poverty rate, South Carolina balances coastal economic growth with inland rural challenges. Manufacturing expansion and tourism provide economic opportunities in some regions. Educational performance shows improvement but disparities persist. Healthcare access varies between urban and rural areas. Agricultural communities face market pressures and climate adaptation needs. The $54,864 median income indicates moderate economic conditions with continued focus on rural development and workforce preparation initiatives.
Median Household Income Analysis in the US 2025
| Income Category | State Examples | Median Income Range | Comparison to National Average |
|---|---|---|---|
| Lowest Income States | Mississippi, Louisiana, Arkansas | $45,792 – $49,475 | 25-30% below national average |
| Low-Middle Income | New Mexico, Alabama, Kentucky | $51,243 – $52,238 | 20-25% below national average |
| Middle-Low Income | Oklahoma, Tennessee, S. Carolina | $53,840 – $54,864 | 15-20% below national average |
| National Average | United States Overall | $70,000 (estimated) | Baseline comparison |
| Highest Income States | Maryland leads at $87,063 | $80,000+ | 15-25% above national average |
The median household income by state 2025 data reveals the stark economic divide between America’s wealthiest and poorest states. Mississippi’s median household income of $45,792 represents approximately 65% of the national average, creating significant challenges for families trying to meet basic needs. This income disparity affects everything from housing affordability to educational opportunities, as families with lower incomes struggle to invest in their children’s future through activities, tutoring, or higher education savings.
The income gap becomes even more pronounced when comparing the poorest states to the wealthiest. Maryland’s median household income of $87,063 is nearly 90% higher than Mississippi’s figure, illustrating how geographic location significantly impacts economic opportunity in America. This disparity reflects differences in industry composition, educational attainment, cost of living, and historical economic development patterns. States with higher median incomes typically have more diverse economies, better educational systems, and greater access to high-paying professional services jobs.
Unemployment Rates in Poorest States in the US 2025
| State | Unemployment Rate (%) | Labor Force Participation | Job Growth Rate | Major Employment Sectors |
|---|---|---|---|---|
| Mississippi | 5.8% | 55.2% | +1.2% | Healthcare, Agriculture, Manufacturing |
| Louisiana | 4.9% | 58.1% | +0.8% | Oil/Gas, Tourism, Agriculture |
| New Mexico | 4.6% | 56.7% | +1.5% | Government, Tourism, Agriculture |
| West Virginia | 3.9% | 52.3% | -0.3% | Coal, Healthcare, Government |
| Kentucky | 4.3% | 57.8% | +1.1% | Manufacturing, Agriculture, Healthcare |
| Arkansas | 3.8% | 59.4% | +1.4% | Agriculture, Manufacturing, Retail |
| Alabama | 3.2% | 58.9% | +1.7% | Manufacturing, Aerospace, Agriculture |
| Oklahoma | 3.5% | 60.1% | +1.3% | Oil/Gas, Agriculture, Aerospace |
| Tennessee | 3.1% | 62.4% | +2.1% | Manufacturing, Healthcare, Tourism |
| South Carolina | 3.4% | 61.2% | +1.9% | Manufacturing, Tourism, Agriculture |
Unemployment rates in the poorest states 2025 show interesting patterns that don’t always correlate directly with poverty levels. Mississippi, despite having the highest poverty rate, experiences 5.8% unemployment, which is above the national average of 3.7%. This suggests that while jobs may be available, they often don’t pay wages sufficient to lift families above the poverty line. The state’s low labor force participation rate of 55.2% indicates that many working-age adults have stopped actively seeking employment, possibly due to discouragement or lack of suitable opportunities.
Conversely, several states with high poverty rates maintain relatively low unemployment rates. Alabama shows 3.2% unemployment and South Carolina 3.4%, both below the national average. This phenomenon highlights the concept of “working poverty,” where individuals maintain employment but earn wages insufficient to meet basic needs. The disconnect between employment availability and poverty reduction emphasizes the importance of job quality, wage levels, and career advancement opportunities rather than just job quantity in addressing state-level economic challenges.
Educational Attainment Levels in the US 2025
| State | High School Graduation Rate | Bachelor’s Degree or Higher | Advanced Degree Holders | Education Funding Per Student |
|---|---|---|---|---|
| Mississippi | 85.3% | 22.4% | 8.1% | $9,863 |
| Louisiana | 82.7% | 24.8% | 8.9% | $11,421 |
| New Mexico | 74.9% | 27.3% | 11.2% | $10,893 |
| West Virginia | 89.1% | 21.1% | 7.4% | $12,064 |
| Kentucky | 88.4% | 24.7% | 9.8% | $10,567 |
| Arkansas | 88.5% | 23.1% | 8.3% | $10,234 |
| Alabama | 91.2% | 25.5% | 9.4% | $10,189 |
| Oklahoma | 86.7% | 26.2% | 9.1% | $9,456 |
| Tennessee | 89.7% | 27.9% | 10.8% | $9,789 |
| South Carolina | 84.1% | 28.4% | 11.1% | $11,842 |
Educational attainment in poorest states 2025 reveals a complex relationship between education levels and economic outcomes. New Mexico presents an interesting case with the lowest high school graduation rate at 74.9% but relatively high college degree attainment at 27.3%, suggesting educational polarization within the state. This pattern often reflects geographic disparities, with urban areas achieving higher educational levels while rural communities struggle with high school completion rates.
The data demonstrates that educational challenges extend beyond just high school completion to include college accessibility and completion. Mississippi’s 22.4% bachelor’s degree attainment rate falls significantly below the national average of approximately 35%. This educational gap directly impacts economic development, as modern industries increasingly require post-secondary education and technical skills. States with lower educational attainment struggle to attract high-paying industries and face challenges in workforce development, creating a cycle where limited educational opportunities lead to reduced economic prospects, which in turn limit resources available for educational improvement.
Healthcare Access and Outcomes in the US 2025
| State | Uninsured Rate (%) | Healthcare Provider Ratio | Hospital Closures (2020-2025) | Health Ranking (1-50) |
|---|---|---|---|---|
| Mississippi | 11.7% | 1:1,847 | 8 | 50th |
| Louisiana | 8.9% | 1:1,523 | 6 | 49th |
| New Mexico | 9.2% | 1:1,634 | 4 | 45th |
| West Virginia | 5.8% | 1:1,789 | 12 | 47th |
| Kentucky | 6.1% | 1:1,692 | 9 | 44th |
| Arkansas | 8.4% | 1:1,743 | 7 | 48th |
| Alabama | 10.3% | 1:1,598 | 5 | 46th |
| Oklahoma | 14.2% | 1:1,812 | 11 | 43rd |
| Tennessee | 9.7% | 1:1,456 | 3 | 41st |
| South Carolina | 10.8% | 1:1,589 | 4 | 42nd |
Healthcare access in poorest states 2025 presents significant challenges that compound economic hardships faced by residents. Oklahoma leads with the highest uninsured rate at 14.2%, meaning more than one in seven residents lacks health insurance coverage. This situation creates barriers to preventive care and early treatment, often resulting in more expensive emergency interventions and poorer health outcomes that can perpetuate cycles of poverty through medical debt and lost productivity.
The healthcare provider shortage across these states creates additional access barriers, particularly in rural areas. Mississippi’s provider ratio of 1:1,847 means each healthcare provider serves nearly 1,900 people, well above the recommended ratio. Hospital closures have been particularly devastating, with West Virginia losing 12 hospitals between 2020-2025, forcing residents to travel greater distances for care. These closures disproportionately affect rural communities and low-income residents who may lack transportation or resources to seek care elsewhere, creating healthcare deserts that worsen health disparities.
Cost of Living Comparison in the US 2025
| State | Overall Cost Index | Housing Cost Index | Healthcare Cost Index | Transportation Cost Index |
|---|---|---|---|---|
| Mississippi | 86.1 | 71.2 | 91.4 | 87.3 |
| Louisiana | 91.7 | 79.8 | 96.2 | 89.1 |
| New Mexico | 95.3 | 88.4 | 98.7 | 92.6 |
| West Virginia | 90.5 | 78.3 | 105.2 | 94.1 |
| Kentucky | 92.8 | 81.6 | 99.8 | 91.2 |
| Arkansas | 88.9 | 74.7 | 94.6 | 88.8 |
| Alabama | 89.4 | 76.9 | 97.3 | 89.7 |
| Oklahoma | 87.2 | 73.1 | 102.1 | 90.4 |
| Tennessee | 94.2 | 84.3 | 100.7 | 93.8 |
| South Carolina | 96.8 | 89.7 | 103.4 | 95.2 |
Cost of living in poorest states 2025 provides some economic relief to residents despite lower median incomes. Mississippi’s overall cost index of 86.1 means living costs are approximately 14% lower than the national average, with housing costs particularly affordable at 29% below national levels. This cost advantage helps stretch limited household budgets, though it doesn’t fully offset the income disparities these states experience.
However, the cost savings aren’t uniform across all categories. Healthcare costs in West Virginia index at 105.2, meaning residents pay 5% more than the national average for medical care despite having lower incomes. This creates particularly challenging situations for families dealing with chronic health conditions or medical emergencies. Transportation costs also remain relatively high in many of these states, reflecting the rural nature of many communities where residents must travel greater distances for work, shopping, and services, offsetting some of the housing cost advantages.
Economic Opportunity and Job Market in the US 2025
| State | Job Growth Rate (%) | Business Formation Rate | Average Wage Growth | Economic Diversification Index |
|---|---|---|---|---|
| Mississippi | +1.2% | 12.3 per 1,000 | +2.8% | Low |
| Louisiana | +0.8% | 14.7 per 1,000 | +3.1% | Medium-Low |
| New Mexico | +1.5% | 15.2 per 1,000 | +3.4% | Low |
| West Virginia | -0.3% | 8.9 per 1,000 | +1.9% | Very Low |
| Kentucky | +1.1% | 13.8 per 1,000 | +2.7% | Medium-Low |
| Arkansas | +1.4% | 16.1 per 1,000 | +3.0% | Medium |
| Alabama | +1.7% | 14.9 per 1,000 | +3.3% | Medium |
| Oklahoma | +1.3% | 17.8 per 1,000 | +2.9% | Medium-Low |
| Tennessee | +2.1% | 19.2 per 1,000 | +3.7% | Medium-High |
| South Carolina | +1.9% | 18.7 per 1,000 | +3.5% | Medium |
Economic opportunity in poorest states 2025 shows mixed signals with some states demonstrating positive momentum while others struggle with structural challenges. Tennessee leads with 2.1% job growth and the highest business formation rate at 19.2 per 1,000 people, indicating a dynamic entrepreneurial environment. The state’s economic diversification efforts in manufacturing, healthcare, and technology sectors are beginning to show results with wage growth reaching 3.7% annually.
West Virginia faces the most significant challenges with negative job growth of -0.3% and the lowest business formation rate at 8.9 per 1,000 people. The state’s continued dependence on declining coal industry and limited economic diversification creates persistent employment challenges. The very low economic diversification index indicates vulnerability to sector-specific downturns and limited opportunities for workers to transition between industries. This situation requires comprehensive economic development strategies focusing on workforce retraining, infrastructure investment, and attraction of new industries.
Future Outlook
The economic landscape for the poorest states in 2025 presents both challenges and emerging opportunities that will shape their development trajectory over the next decade. Federal infrastructure investments and renewable energy transitions offer potential pathways for economic revitalization, particularly for states like West Virginia and Kentucky that can leverage their energy production experience. Technology sector growth and remote work opportunities may help bridge geographic disadvantages, though this requires significant investments in broadband infrastructure and workforce development programs.
Regional collaboration and targeted policy interventions show promise for addressing persistent poverty challenges. States demonstrating positive momentum, such as Tennessee and South Carolina, provide models for economic diversification and business attraction strategies. Success will depend on sustained commitments to education reform, healthcare access improvement, and infrastructure development. The ability to break cycles of intergenerational poverty while maintaining affordable living costs will determine whether these states can transform their economic prospects and improve outcomes for millions of residents facing ongoing hardships.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
