These 10 States Practically Require a Second Job (New York and California Aren’t Even on the List)
For many, a second job — and not just a part-time gig — is crucial for getting by. As of this time last year, 426,000 people held two full-time jobs, compared to 308,000 in February 2020, according to federal labor data. Inflation has been a major contributor to the need for a second paycheck in the U.S.
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Though no state provides enough income to prevent everyone within its borders from needing a second job, there are some states that are less hospitable than others. New research by Hostinger looked at living wages to determine which states put the most pressure on folks to take up a second job or side hustle in order to augment their income.
Here’s a look at the 10 states in the U.S. that offer the least amount of financial flexibility after covering essentials including healthcare, housing and groceries, according to Hostinger’s findings. Note that the average salary in the U.S. is $55,640, according to Indeed.
Alabama
- Living wage: $33,093
- Annual salary: $44,930
- Residual wage: $11,837
The average annual salary in Alabama is only $44,930 — more than $10k under what the average worker makes in this state, where the cost of living is 12% lower than the national average, according to RentCafe. Alabama is the sixth poorest state in the U.S.
Montana
- Living wage: $33,946
- Annual salary: $45,370
- Residual wage: $11,424
According to RentCafe, the cost of living is 2% higher than the national average, yet the average worker is making less than the national average salary.
West Virginia
- Living wage: $32,136
- Annual salary: $43,420
- Residual wage: $11,284
West Virginia is a notoriously impoverished place — with a 16.8% poverty rate. The cost of living in this state is 1.24 times less expensive than the average in the country, according to LivingCost.org.
Maine
- Living wage: $37,190
- Annual salary: $48,470
- Residual wage: $11,280
The cost of living in Maine is actually 1.05 times higher than the national average, according to LivingCost.org, but people here generally aren’t being paid enough to meet that high threshold. Many residents need to double up on jobs.
Idaho
- Living wage: $33,613
- Annual salary: $44,890
- Residual wage: $11,277
According to LivingCost.org, the cost of living in Idaho is 1.02 times as expensive as the national average. No wonder Idahoans often resort to a side hustle or more to get by.
Louisiana
- Living wage: $33,592
- Annual salary: $44,170
- Residual wage: $10,578
Louisiana is another example of a state with a staggering poverty rate, with roughly 19.6% of its population living below the line, according to Statista. The cost of living here is 8% lower than the national average, according to RentCafe.
Arkansas
- Living wage: $32,344
- Annual salary: $42,690
- Residual wage: $10,346
You may not think a lucrative salary is necessary to live well in Arkansas — but certainly you need more than $42,690, especially if you’ve got a family to support. Arkansas is the seventh poorest nation in the U.S.
Hawaii
- Living wage: $45,739
- Annual salary: $54,930
- Residual wage: $9,191
Pretty much everyone knows that Hawaii is an exorbitantly expensive place to reside. In Honolulu, for instance, the cost of living is 84% above the national average, according to PayScale. It’s shocking that the average annual salary here is below the nation’s average.
South Carolina
- Living wage: $36,338
- Annual salary: $44,380
- Residual wage: $8,042
According to the U.S. Census Bureau, South Carolina’s poverty rate stands at 14.6%. It’s woefully understandable when considering that the average residual wage is only $8,042.
Mississippi
- Living wage: $32,573
- Annual salary: $40,090
- Residual wage: $7,517
Mississippi is the state most desperately in need of second jobs. The state has a low average annual salary of $40,090. Even as a relatively “affordable” state, that’s just too little money for many to get by on.
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