Vermont Tops List of Hardest States to Live and Work in 2025

• The hardest state to live and work in America is Vermont, where residents are left with just $3,452 after paying annual living costs of more than $62K.

• New Mexico leaves 65.4% of workers without health insurance, showing the worst coverage rate in the US.

• Louisiana reports the lowest safety rating in America, while its workers also log some of the longest weeks at 46 hours on average.

Housing costs have surged 40% across the US since 2020, and more than half of American workers now live paycheck to paycheck. The Law Offices of James Scott Farrin recently did a study analyzing social and economic conditions across the country to identify the states where it’s hardest to live and work right now.

The research evaluated each state across numerous labor and living standards, such as: yearly income and living expenses, spare money potential, weekly work hours, unemployment rates, insurance coverage, safety ratings, and commute times. The rankings gave more weight to work conditions, while still considering living factors.

Here's a look at the 10 hardest states to work and live in:

State	Average Yearly Income (USD)	Annual Cost of Living (one person)	Unemployment Rate	Safety Index	% of Insured Employees
Vermont	65,712	62,260	2.6	67.9	48.80%
Kentucky	57,509	44,027	4.9	52.7	46.10%
Rhode Island	72,515	61,265	4.8	57.5	50.80%
Louisiana	53,821	40,749	4.5	33.3	40.90%
New Mexico	56,766	41,481	4.2	48.0	34.60%
West Virginia	57,979	44,637	3.7	49.1	44.30%
Mississippi	51,554	42,632	4.0	35.1	42.70%
Hawaii	78,745	69,434	2.7	60.1	50.00%
Maine	66,369	47,321	3.2	64.2	46.40%
Wyoming	61,866	47,567	3.3	55.9	47.80%

You can access the complete research findings here.

Vermont ranks as the hardest state to work and live in America. Despite average 66K earnings, residents have to manage living costs of 62K annually, leaving just 3,452 in disposable income. With this, workers spend 95% of their income on necessities. Combined with Vermont’s challenging job market, which is growing below the national standard, it creates challenging conditions for work and living.

Kentucky takes second place among the hardest states to live in. Kentucky workers earn 58K yearly while facing 44K in living costs. Though this creates 13K in disposable income, the state's high 4.9% unemployment rate indicates limited job opportunities. Kentucky falls short in worker protection too, with just 46.1% of employees receiving insurance coverage.

Rhode Island holds third position with high living costs. Despite residents here earning 73K annually, housing expenses consume 61K, which works out to just 11K available for savings. The state's 4.8% unemployment rate also sits well above the national average, creating job insecurity among the local workforce.

Louisiana is the fourth most challenging state for workers. While earning just 54K on average (second-lowest wages), residents must cover yearly living expenses of around 41K. They also put in some of the nation’s longest weeks at 46 hours, all while facing the country’s lowest safety rating and with nearly 60% of the local workforce lacking health benefits.

New Mexico takes fifth place with the worst rate of insured workers. Just 34.6% of employees have access to medical insurance here. 4.2% of labor is also unemployed, and those with jobs earn 57K on average. With 41K in living costs, this leaves them with 15K potential annual spare money.

West Virginia sits in sixth position, reporting the lowest job growth in America at only 0.4%. Workers here earn 58K while handling annual expenses of 45K. The state registers low insurance coverage, while locals also have to deal with one of the longest commutes every day.

In the seventh place is Mississippi, where paychecks are the smallest in the country at just 52K a year. With living costs reaching 43K, most residents are left with less than 9K to work with. Mississippi also shows America’s second-worst crime rates, while 42.7% employed residents are without health benefits.

Next comes Hawaii, where high 79K wages get overwhelmed by 69K living costs, shrinking take-home amount to about 9K a year. The island residents also face average commutes of 27 minutes, which is among the longest in the country.

Maine is in the ninth position among the toughest states to live and work. The average worker in Maine gets 66K in annual wages, out of which 47K is spent on necessities. This translates to 19K in potential savings each year. Like other challenging states, Maine also struggles with insurance rates, covering only 46.4% of employees.

Wyoming completes the top 10 hardest states for living. Residents here earn 62K and put aside nearly 48K for living costs every year (ending up with 14K after expenses). Wyoming’s unemployment rate is close to the national average, while job growth (2.1%) falls behind it.

"Safety statistics affect both your physical protection and your money situation," says James Scott Farrin from The Law Offices of James Scott Farrin. "In states with higher crime rates, residents pay more for many things, including personal and home insurance (due to increased risks). When incomes are already low, these extra safety costs take a bigger bite out of family budgets. In addition, even small incidents like theft or property damage can push people into serious money troubles when they're already spending most of their paycheck on basics. So safer states not only protect people physically, they also help residents financially through lower rates and fewer unexpected expenses.”