A new report from Insider Monkey, a New Jersey-based finance website, has named Indiana the 16th poorest state in America. The study, which analyzed poverty and education levels using 2021 data from the U.S. Census Bureau, also revealed that Bloomington stands out as the poorest city in Indiana.
How Indiana Was Ranked
The report, titled “25 Poorest States in America,” placed Indiana at number 16 based on a poverty rate of 10.8% in 2021. This marked a slight improvement compared to the 11.2% poverty rate recorded in 2020. The median household income in Indiana was estimated to be around $62,000 during the same period.
In terms of education, 18.5% of Indiana residents aged 25 and older held a bachelor’s degree. Among younger adults aged 18 to 24, around 38.2% had completed some level of college education.
Bloomington: The Poorest City in Indiana
The report pointed out that Bloomington, best known as the home of Indiana University, has a poverty rate of 34.3%. This not only makes it the poorest city in the state but also places it among the poorest cities nationwide.
Experts often link higher poverty rates in college towns like Bloomington to large student populations, who may have little or no income while pursuing their education. However, the report’s findings still highlight the financial struggles faced by many residents.
How Indiana Compares to Other States
The Insider Monkey study also named New Mexico as the poorest state in America, with a poverty rate of 16.7%. In New Mexico, about 16% of those over 25 years old had bachelor’s degrees, while 35.7% of young adults aged 18 to 24 had attended some college.
West Virginia and Louisiana were ranked second and third poorest, respectively. West Virginia was also noted for having the lowest educational attainment in the country, with just 14.2% of adults over 25 holding a bachelor’s degree.
While Indiana has made slight progress in reducing its poverty rate, challenges remain, especially in cities like Bloomington. With education levels playing a big role in economic health, focusing on boosting educational opportunities could be key to improving the state’s financial future. As states like New Mexico, West Virginia, and Louisiana continue to face even higher poverty levels, the report serves as a reminder of the ongoing efforts needed across the U.S. to tackle poverty and uplift communities.
