Living paycheck to paycheck is a reality for many Americans, with at least one in three households struggling to make ends meet. Stagnating wages and a challenging job market only add to the financial strain. According to a new study by the Law Offices of James Scott Farrin, where you live can significantly impact your financial well-being. The study evaluated states based on factors like annual income, cost of living, unemployment rates, safety, and employee insurance coverage, creating a safety index to highlight how safety affects financial stability. The findings reveal the 10 states where it’s hardest to live and work in 2025. Here’s a closer look at the list.
10. Wyoming
Wyoming ranks as the 10th hardest state to live and work in. With an average yearly income of $61,866 and a cost of living at $47,567, residents have some room for savings, but the state’s unemployment rate of 3.3% and a safety index of 55.9 indicate challenges. Only 47.8% of employees are insured, adding to financial insecurity.
9. Maine
Maine comes in at 9th, with an average income of $66,369 and a cost of living of $47,321. While the unemployment rate is relatively low at 3.2%, the state’s safety index of 64.2 suggests moderate safety concerns. Only 46.4% of employees have insurance, which can strain household budgets.
8. Hawaii
Hawaii ranks 8th, largely due to its high cost of living at $69,434, despite a higher average income of $78,745. The state boasts a low unemployment rate of 2.7% and a safety index of 60.1, but only 50% of employees are insured, making it tough for many to manage expenses.
7. Mississippi
Mississippi is the 7th hardest state, with the lowest average income on the list at $51,554 and a cost of living of $42,632. The unemployment rate is 4.0%, and a low safety index of 35.1 reflects significant safety concerns, which increase costs like insurance. Only 42.7% of employees have insurance coverage.
6. West Virginia
West Virginia ranks 6th, with an average income of $57,979 and a cost of living of $44,637. The unemployment rate of 3.7% and a safety index of 49.1 highlight economic and safety challenges. Only 44.3% of employees are insured, further complicating financial stability.
5. New Mexico
New Mexico is the 5th toughest state, with an average income of $56,766 and a cost of living of $41,481. The state’s unemployment rate of 4.2% and a safety index of 48.0 indicate struggles, and a notably low 34.6% of employees have insurance, exacerbating financial strain.
4. Louisiana
Louisiana ranks 4th, with an average income of $53,821 and a cost of living of $40,749. The unemployment rate is high at 4.5%, and the state’s safety index of 33.3 is among the lowest, driving up costs for insurance and safety measures. Only 40.9% of employees are insured.
3. Rhode Island
Rhode Island is the 3rd hardest state, with a higher average income of $72,515 but a steep cost of living at $61,265. The unemployment rate of 4.8% and a safety index of 57.5 add to the challenges, though 50.8% of employees have insurance, offering some relief.
2. Kentucky
Kentucky ranks as the 2nd-worst state, with an average income of $57,509 and a cost of living of $44,027. The unemployment rate is high at 4.9%, and the safety index of 52.7 suggests moderate safety concerns. Only 46.1% of employees are insured, making it harder to manage expenses.
1. Vermont
Vermont tops the list as the worst state to live and work in. Despite an average income of $65,712, the cost of living is high at $62,260, leaving little room for savings. While the unemployment rate is low at 2.6% and the safety index is strong at 67.9, only 48.8% of employees have insurance, contributing to financial difficulties.
The study highlights that safety plays a critical role in financial well-being. “In states with higher crime rates, residents pay more for many things, including personal and home insurance,” said James Scott Farrin. These additional costs can take a significant toll on family budgets, especially in states with lower incomes. For residents in these states, addressing both economic and safety challenges is crucial to improving quality of life.