August 17th 2024.
According to a recent study by Visual Capitalist, New Mexico has been ranked as the state with the highest poverty rate in the United States. This southwestern state has a staggering poverty rate of 18.2%, which was determined using the official poverty measure. This measure compares a family's pre-tax income to a national threshold that varies depending on the size of the family. For instance, a family of four would have a poverty threshold of $29,950, while a family of one would have a threshold of $14,880.
This list of high poverty rates also includes Mississippi, Louisiana, Arkansas, and Kentucky, all of which have large rural areas that are historically known to be poorer than urban areas. Oklahoma, West Virginia, and Alabama also have high poverty rates, with the District of Columbia and Texas rounding out the top 10. It is worth noting that all these states are located in the South, where low levels of education and labor force participation are common issues. These factors contribute to the slow economic growth and lower personal income levels in these areas.
Unfortunately, poverty has been a persistent problem in the South for the last 30 years. In fact, one in five counties in this region are considered to have "persistent poverty", with a poverty rate of over 20% for three decades. What's more, a majority of these persistently poor counties are located in the South. This paints a bleak picture of the economic situation in this region.
As of 2022, the official poverty rate in the United States was 11.5%, with 37.9 million people living below the poverty line. However, there is some hope for progress, particularly within the Black community. The official poverty rate for Black individuals actually decreased between 2021 and 2022, with 2022 being the lowest on record. This is a small but important step towards reducing poverty in the United States.
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