Middle income growth 2010-2014: -0.8% Fifth quintile income growth 2010-2014: 3.7% (23rd highest) Fifth quintile share of income: 50.8% (13th highest) Middle class household income: $41,581 (3rd lowest)Middle class households earn roughly $41,600 in Arkansas, over $300 less than in 2010 and nearly $13,000 less than middle class households across the country. As in most of the nation, even as income of middle class households declined, income among Arkansas’ highest 20% of households grew. Average incomes in the highest quintile grew by 3.7% to $146,449 over the same time period. Within the highest group of earners, income gains were even more dramatic among the top 5% of households, with earnings growing 10.3% since 2010, the eighth highest increase in the country over that time. A weak job market may help explain the decline in incomes of the state’s middle earners. The state’s unemployment rate fell to 6.1% from a high of 8.2% in 2010, largely due to a nearly 4% contraction in Arkansas’s labor force.
9. New York
Middle income growth 2010-2014: -1.0% Fifth quintile income growth 2010-2014: 2.9% (23rd lowest) Fifth quintile share of income: 54.0% (the highest) Middle class household income: $58,923 (15th highest)Income inequality in New York is the worst in the country. The bottom 20% of households account for just 2.6% of all income in the state, the least in the nation. Conversely, the top 20% of households account for 54% of all income, the most in the nation. Further, New York is one of only two states, along with Connecticut, where more than 25% of all income was earned by just the top 5% of households from 2010 through 2014. Despite the chasm between rich and poor, nearly one quarter of public and private workers are part of a union, the highest in the country and an indication of middle class health. Nationwide, just 11.1% of workers are union members.Read More: Jobs With the Best (and Worst) Job Security
8. Montana
Middle income growth 2010-2014: -1.1% Fifth quintile income growth 2010-2014: 5.2% (16th highest) Fifth quintile share of income: 49.2% (18th lowest) Middle class household income: $46,442 (10th lowest)One of just a handful of states in the country without a sales tax, Montana’s relatively progressive tax climate is perhaps more favorable to middle class households. The state’s Gini coefficient is among the lowest in the country, and the unemployment rate has tracked roughly 2 percentage points below the national rate since 2010, even as the state's labor force increased sharply. Middle class incomes, however, have not fared as well, shrinking 1.1% over the five years ending in 2014. Over the same period, household incomes of the top 20% increased 5.2%, one of the larger increases in the country. In 2015, a study by Pew Charitable Trusts, a nonprofit think tank, found that middle class incomes in the state fell significantly more than other Western states from 2000 through 2013
7. California
Middle income growth 2010-2014: -1.2% Fifth quintile income growth 2010-2014: 5.6% (14th highest) Fifth quintile share of income: 52.1% (3rd highest) Middle class household income: $62,428 (9th highest)Unions can sometimes provide workers the organizational clout to prevent stagnant or decreasing wages. This was not the case in California, however. Despite 16.3% of workers belonging to a union, the sixth highest share in the country, incomes went up for the wealthiest Californians, while the poorest state residents got poorer. The middle 20% of households earned 1.2% less in 2014 compared to 2010. Incomes of the top 20% of households increased 5.6% during that time, by contrast.Read More: The 10 Richest U.S. Presidents
6. South Carolina
Middle income growth 2010-2014: -1.6% Fifth quintile income growth 2010-2014: 2.5% (21st lowest) Fifth quintile share of income: 50.3% (19th highest) Middle class household income: $45,236 (9th lowest)High unemployment and low union membership in South Carolina may partially explain why the middle class is doing so poorly. From 2010 through 2014, middle class incomes fell 1.6%, more than double the national decline. Meanwhile, incomes among the top 20% of households grew by 2.5%, and household incomes of the top 5% grew faster still, increasing by 4.2%. Currently, the top 20% of earners control more than half of all income in the state, up from five years earlier. The state also levies a 6% sales tax, one of the highest nationwide. Many argue sales taxes are regressive, because poorer residents tend to spend a larger share of their income on taxed goods and services.
5. Tennessee
Middle income growth 2010-2014: -1.8% Fifth quintile income growth 2010-2014: 3.8% (22nd highest) Fifth quintile share of income: 51.5% (7th highest) Middle class household income: $44,635 (6th lowest)In 2010, middle class households in Tennessee earned 14.7% of all income in the state, a slightly higher share than that earned by middle class households nationwide. By 2014, that share had dropped to 14.2%, nearly twice the comparable decline across the country. In fact, the share of income controlled by the bottom 95% of Tennessee households contracted between 2010 and 2014, with all income gains going to the top 5%. Those gains contributed to a 7.1% increase in incomes among the top 5% of households, larger than the 6.1% growth for that cohort nationwide.At 7.0%, Tennessee’s sales tax is among the highest in the country and may contribute to declining middle class incomes. A sales tax causes poorer residents -- roughly 18.3% of Tennesseans live in poverty -- to pay a larger share of their income in taxes compared to wealthier residents.Read More: States With the Highest (and Lowest) Property Taxes
4. North Carolina
Middle income growth 2010-2014: -1.8% Fifth quintile income growth 2010-2014: 3.3% (25th highest) Fifth quintile share of income: 51.0% (11th highest) Middle class household income: $46,677 (11th lowest)North Carolina’s unemployment rate dropped 4.8 percentage points from 2010 to 6.1% in 2014, just below the national unemployment rate of 6.2% that year. Despite the improvement, however, income inequality has been getting worse in the state. The highest earning 20% of North Carolina households have an average income of more than $166,000, up 3.3% since 2010. Meanwhile, the income of a typical middle class North Carolina household fell by 1.8%, more than twice the comparable national income decline of 0.7%.Union membership, which is often associated with middle class health, fell 1.3 percentage points to 1.9% in 2014, the lowest share in the country. Low union membership can often make it more difficult for workers to organize and advocate for themselves. North Carolina has resisted workers’ demands to raise the minimum wage above the federal minimum of $7.25 per hour, which many argue would help mitigate income inequality.
3. Maine
Middle income growth 2010-2014: -2.2% Fifth quintile income growth 2010-2014: 6.0% (11th highest) Fifth quintile share of income: 49.3% (20th lowest) Middle class household income: $49,250 (16th lowest)Unlike most states where the middle class is falling behind, income in Maine is relatively well distributed. However, the income gap in Maine is widening faster than in the nation as a whole. Average incomes among the wealthiest 20% of households in the state grew by 6.0% between 2010 and 2014, one of the faster growth rates and much faster than the comparable national figure of 3.7%. Incomes earned by middle class households, on the other hand, declined 2.2% over that time. While more income has been shifting faster to the state’s wealthiest residents, both Maine’s unemployment and poverty rates have been lower than the respective national rates.Read More: States With the Highest (and Lowest) Voter Turnou
2. Georgia
Middle income growth 2010-2014: -2.7% Fifth quintile income growth 2010-2014: 2.7% (22nd lowest) Fifth quintile share of income: 51.3% (9th highest) Middle class household income: $49,285 (18th lowest)Household incomes of the top 20% of earners in Georgia grew by 2.7% in the five years through 2014, slower than the 3.7% income growth among that cohort nationally. While the income growth in the top quintile of households was modest over that period, incomes of middle class households declined dramatically. Income from Georgian households in the third quintile fell by 2.7% over that period, more than 2.0 percentage points faster than the 0.7% decline in middle class incomes nationwide.Union membership, which can help strengthen a state’s middle class, is low in the state with just 4.3% of workers belonging to a union, considerably less than the 11.1% of the American workforce with a union membership.
1. Rhode Island
Middle income growth 2010-2014: -3.1% Fifth quintile income growth 2010-2014: 4.5% (18th highest) Fifth quintile share of income: 51.2% (10th highest) Middle class household income: $55,414 (19th highest)Middle class households in Rhode Island are among the worst off compared to the highest earning households in the state. From 2010 through 2014, middle class household incomes shrank 3.1% to $55,414 a year. Over the same period, incomes of the top 20% of households grew by 4.5%, one of the largest income growth disparities between those cohorts in the country. Consequently, the state’s Gini coefficient increased nearly four times as fast as the nation’s comparable figure from 2012 through 2014. Additionally, the state’s labor market is far from healthy. Nearly 8% of the state’s workforce is unemployed, the third highest unemployment rate in the country. And while the state’s unemployment rate has fallen 3.5 percentage points since its peak in 2010, the decline is due largely to a 2.4% contraction in the state’s labor force.Read More: The Tallest Building in Every State
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