In this article, we will be covering the top 20 U.S. states by median household income. If you want to skip our detailed analysis, you can go directly to Top 5 U.S. States By Median Household Income.
The United States economy continues to navigate the post-pandemic landscape, and employment trends in the country remain an important indicator of economic well-being and prosperity. Let’s explore the employment trends that are shaping the lives of residents in the U.S. and identify the key sectors that are fueling job creation and income growth.
America’s Job Market and Key Trends
Driven by technological advancements, demographic shifts, and economic cycles, the U.S. employment sector is constantly evolving. Temporary and freelance work arrangements have surged over the past few years. Similarly, in recent years, remote work has also become much more prevalent, offering greater flexibility and work-life balance.
According to a survey by FlexJobs, there is a strong preference for remote or hybrid work arrangements among employees. The 2022 Career Pulse Survey found that a staggering 65% of respondents wanted to work remotely full-time, while 32% opted for a hybrid model. This overwhelming preference for remote work arrangements highlights the evolving expectations of today’s workforce, prioritizing flexibility and work-life balance. You can also take a look at the best work from home jobs for 2023.
Recent trends show an increased demand for healthcare services, which is driving a surge in demand for healthcare workers, particularly nurses, physicians, and technicians. As reported by the U.S. Bureau of Labor Statistics, healthcare added 58,000 jobs and social assistance added 19,000 jobs in October. The report also mentions that employment in government increased by 51,000 in October.
Moreover, automation is rapidly transforming many different markets and industries. While this trend poses challenges for some workers by replacing routine tasks and sometimes displacing workers in certain sectors, it also creates new job opportunities in areas like automation design, data analysis, and maintenance. In one of our previous articles about the most automated industries in the US, we discussed that contrary to popular belief, automation of industries is expected to create more jobs in the future. According to a report by Deloitte, the manufacturing industry alone could have 2.1 million unfilled jobs in the United States by 2030.
As technology advances and industries evolve, the demand for skills is changing. Upskilling and reskilling has become more crucial than ever for many workers around the country to remain competitive in the job market. This underscores the importance of access to education, learning, and training opportunities.
Some of the Biggest Companies that are Creating Jobs for Americans
Some of the major companies that are driving job creation and income growth in the United States are Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Walmart Inc. (NYSE:WMT). These corporations contribute significantly to the country’s economic vitality and prosperity.
Amazon.com, Inc. (NASDAQ:AMZN) and Apple Inc. (NASDAQ:AAPL) are some of the most valuable companies in the world. These two tech giants have been contributing to job creation and economic growth in the U.S. for years.
Apple Inc. (NASDAQ:AAPL) claims that it is one of the biggest job creators in the country, responsible for around 2 million jobs in all of 50 U.S. states. Apple Inc. (NASDAQ:AAPL) boasts a diverse array of employment opportunities, encompassing roles in design, science, construction, manufacturing, retail, customer support, marketing, and hardware and software engineering.
Amazon.com, Inc. (NASDAQ:AMZN) claims that it has created more jobs in the country than any other company over the last decade and that in 2022, it injected over $240 billion into infrastructure and employee compensation, demonstrating its unwavering commitment to the U.S. workforce.
On September 19, Amazon.com, Inc. (NASDAQ:AMZN) announced that it will be recruiting 250,000 employees across the United States for full-time, seasonal, and part-time positions within its extensive operations network. These jobs include stowing, picking, packing, sorting, shipping orders, and more, and employment opportunities are available in hundreds of towns and cities across the country. It said that the employment of 30,000 personnel from among the total pool will be across California. The state of California is set to reap substantial benefits from this hiring drive.
Retail companies such as Walmart Inc. (NYSE:WMT) are among some of the largest private employers in the world. With thousands of stores in America, Walmart Inc. (NYSE:WMT) claims to employ nearly 1.6 million associates in the U.S. alone. The company’s vast network of retail stores, distribution centers, and logistics operations creates numerous jobs. With a loyal customer base in the U.S. and other countries, Walmart Inc. (NYSE:WMT) is one of the biggest companies in the world by revenue. On November 16, Walmart Inc. (NYSE:WMT) reported strong earnings for the fiscal third quarter of 2024. The company reported an EPS of $1.53 and beat estimates by $0.01. The company’s revenue for the quarter grew by 5.26% year-over-year and amounted to $159.44 billion, ahead of market consensus by $895.65 million.
Now that we have looked at some of the key trends in the U.S. employment sector, let’s take a look at the top 20 U.S. states by median household income.
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Methodology
In this article, we have listed the top 20 U.S. states by median household income. To collect data for our list, we consulted the United States Census Bureau database. This database provided us with estimated median household income for all US states. We used data available for the latest year in their dataset, which is 2022. We then narrowed down our selection to rank the top 20 U.S. states by median household income, which are listed below in ascending order.
Top 20 U.S. States By Median Household Income
20. Vermont
Median Household Income: $73,991
First up on our list of top 20 U.S. states by median household income is Vermont. It ranks among the least populated and smallest states in the country. Vermont has a median household income of $73,991.
19. Arizona
Median Household Income: $74,568
Arizona, a southwestern U.S. state, is most famously known for the Grand Canyon. It has also been nicknamed the Grand Canyon State. The state government of Arizona is a major employer in the state, and the state had a median household income of $74,568.
18. Oregon
Median Household Income: $75,657
Oregon, nicknamed the Beaver State, is a state in the Pacific Northwest region of the country. The state’s diverse landscapes provide ideal environments for various types of agriculture and farming. With a median household income of $75,657, Oregon ranks at the number 18 spot on our list of top 20 U.S. states by median household income.
17. Illinois
Median Household Income: $76,708
Illinois ranks among the most populated U.S. states. Home to the global city of Chicago, major agricultural and industrial hubs, and natural resources such as coal, timber and petroleum, the state of Illinois has a highly diverse economy. According to recently reported data, Illinois has a median household income of $76,708.
16. New York
Median Household Income: $79,557
The state of New York is located in the North Eastern part of the country. It ranks among the most populated U.S. states. New York City, or NYC, which is the largest city in the state, is the country’s most populated city. The state of New York has a median household income of $79,557.
15. Rhode Island
Median Household Income: $81,854
Rhode Island, nicknamed the Ocean State, is known for its sandy shores and seaside Colonial towns. With a median household income of $81,854, Rhode Island ranks among the top 15 U.S. states by median household income.
14. Delaware
Median Household Income: $82,174
Delaware is a small Mid-Atlantic U.S. state with a median household income of $82,174. Delaware is known for its business-friendly legal framework that is designed to provide a clear and flexible environment for businesses to operate. It is also known for chemical manufacturing. Over the years the state of Delaware has been called the corporate capital and the chemical capital of the United States.
13. Minnesota
Median Household Income: $82,338
Minnesota is a midwestern U.S. state that shares a border with Canada. It is known for mining, lakes, and Mall of America, which is the largest shopping mall in the United States. According to the most recent available data, Minnesota has a median household income of $82,338.
12. Virginia
Median Household Income: $85,873
Virginia is a southeastern U.S. state that has a median household income of $85,873. With a diverse economy that includes local and federal government, farming, military, and high-tech, Virginia ranks among the wealthiest states in America.
11. Alaska
Median Household Income: $88,121
Alaska is the largest U.S. state by area and at the same time it ranks among the least populated states. It is known for its native culture and wide open spaces. While employment is primarily in government and industries such as natural resource extraction, shipping, and transportation, the oil and gas industry dominates the economy of Alaska. Alaska has a median household income of $88,121.
10. Connecticut
Median Household Income: $88,429
Connecticut is known for its manufacturing industry, cultural heritage, and Yale University. With a median household income of $88,429, Connecticut ranks among the top 10 U.S. states by median household income.
9. Utah
Median Household Income: $89,168
Known for its naturally diverse landscape, Utah is home to arid deserts, pine forests, mountain valleys, and some of the most iconic national parks. Major industries of Utah include government services, salt production, and mining. According to the most recent available data, Utah has a median household income of $89,168.
8. Colorado
Median Household Income: $89,302
Colorado is known for its landscape of mountains, canyons, forests, rivers, high plains, and mesas. It is also home to several federal facilities. The state’s diverse geography and beautiful mountains attract large numbers of tourists and tourism contributes greatly to Colorado’s economy. Colorado has a median household income of $89,302 and ranks high among the top U.S. states by median household income.
7. New Hampshire
Median Household Income: $89,992
New Hampshire is a state in New England that is known for its quaint towns and large expanses of wilderness. It is also home to some of the most popular destinations for skiing, snowboarding, and hiking in the United States. The state of New Hampshire has a median household income of $89,992.
6. Washington
Median Household Income: $91,306
Washington is a state in the northwestern United States. The state of Washington was nicknamed “The Evergreen State” for its abundant evergreen forests. The state is one of the country’s biggest producers of lumber, plywood, and wine. The majority of Washington’s residents live in the Seattle metropolitan area, and the median household income in the state is $91,306.
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Disclosure: None. Top 20 U.S. States By Median Household Income is published on Insider Monkey.