On Thursday, the U.S. Census Bureau released 2021 household income and household earnings data for states from the American Community Survey (ACS). National averages hide the wide disparities experienced by workers and families across states while state-level data can help us understand how policy choices impact income and earnings. According to the ACS, inflation-adjusted median household income in 2021 was $69,717 nationally with large differences across states. Nineteen states and the District of Columbia had median household incomes above the national average with the highest being Maryland ($90,203), The District of Columbia ($90,088), and Massachusetts ($89,645). However, 31 states had median household incomes below the national median with the lowest being in Mississippi ($48,716), West Virginia ($51,248), and Louisiana ($52,087).

The 2021 national median income has increased just 0.1% compared with the pre-pandemic inflation-adjusted 2019 median income. Twenty states had greater growth in their median household incomes than the 0.1% national growth rate, although most were still relatively small. Just six states had 2019 to 2021 median household income growth rates of 3% or more: Vermont, New Hampshire, Arizona, South Dakota, Montana, and Maine. 

26 states and the District of Columbia had household incomes in 2021 that were lower than their inflation-adjusted 2019 incomes. The District of Columbia had the largest decline overall while the largest declines for states were in Wyoming, Delaware, and Louisiana. The decline in real median household incomes is especially concerning in states where household earnings are already especially low. For example, of the five states with the lowest earnings, three saw a decline in real household incomes: West Virginia, Louisiana, and Alabama. These states also lack strong safety nets to support workers and families struggling to make ends meet. Economic insecurity among families in these states and across the nation is also likely to be exacerbated by the reversal of programs expanded during the pandemic, including economic stimulus checks, a strengthened unemployment insurance (UI) system, and cuts to family-supporting programs like the child tax credit. 

The largest component of household income for most people are their earnings (the income they receive through work). Nationally, the median earnings for workers 16 and older were $40,260, up 4% from 2019. Much like household income, 18 states and the District of Columbia have earnings above the national median while 32 states have median earnings below the national median. The District of Columbia had the highest median earnings at $72,457. The states with the highest median earnings were Massachusetts ($50,683), Maryland ($50,548), and New Jersey ($50,021). States with the lowest median earnings are Mississippi ($32,242), West Virginia ($33,739), and Arkansas ($33,869). Southern states overall are over-represented among states with the lowest earnings—7 of the 10 states with the lowest earnings are in the South. This largely reflects policies put in place by state and local lawmakers that continue to keep wages low, including opposition to raising the minimum wage, right to work laws, and the use of preemption to prevent localities from raising wages and improving working conditions and benefits. 

The growth in earnings nationally and in most states outpaced the growth of household income. As noted, earnings increased by 4% since 2019 nationally and just 6 states saw inflation-adjusted earnings decline. Twenty-nine states did have earnings growth lower than the national level with the lowest growth states being Illinois, Oklahoma, and Minnesota. Twenty-two states had earnings growth greater than the national level with the District of Columbia and the states of Arizona and Vermont showing the greatest growth. 

The support provided to workers and families during the pandemic was vital and policymakers should not have let crucial safety net programs expire as many families still need those resources. Policymakers must support policies that will raise workers’ wages and provide them with benefits and basic protections.