America´s Livelihood Index

The livelihood gap prevents financial wellness

Everything you need to know about the Livelihood Gap for the half of America that earns less than the median wage and likely struggles to make ends meet.

What Is the Livelihood Gap

Millions of Americans are struggling to meet livelihood needs, and over 80% live paycheck to paycheck. For the 65 million living at or below the median wage: After being monetized by costly financial service fees for short-term liquidity, everything is more expensive. Whatever is left after paying for food, fuel, auto loans, shelter, daycare, telecom, various types of insurances is not enough. The difference is the Livelihood Gap.

We Calculated This Gap for Every State

LIVELIHOOD INDEX

For most of America, basic expenses exceed income

State Rank
Alabama 10
Alaska * 6
Arizona 2
Arkansas 29
California 28
Colorado 8
Connecticut 36
Delaware 35
Florida 47
Georgia 9
Hawaii * 31
Idaho 19
Illinois 34
Indiana 23
Iowa 12
Kansas 21
Kentucky 7
Louisiana 27
Maine 48
Maryland 5
Massachusetts 30
Michigan 26
Minnesota 18
Mississippi 16
Missouri 39
Montana 45
Nebraska 33
Nevada 44
New Hampshire 49
New Jersey 42
New Mexico 15
New York 41
North Carolina 3
North Dakota 40
Ohio 38
Oklahoma 4
Oregon 14
Pennsylvania 43
Rhode Island 11
South Carolina 17
South Dakota 50
Tennessee 20
Texas 24
Utah 13
Vermont 46
Virginia 25
Washington 1
West Virginia 37
Wisconsin 32
Wyoming 22

Half the working population in 48 out of 50 states is experiencing a gap in their livelihoods. This population – our better half – consists primarily of occupations we now consider essential workers.

If Livelihood Index is less than 100, there is a gap and basic life expenses exceed income. Financial Wellness can only begin when the Livelihood Index is greater than 100 and savings can be put towards financial and social mobility.

Livelihood Index Ranking

1. Washington	102	26. Michigan	93
2. Arizona	100	27. Louisiana	93
3. North Carolina	99	28. California	93
4. Oklahoma	98	29. Arkansas	92
5. Maryland	98	30. Massachusetts	92
6. Alaska	97	31. Hawaii	91
7. Kentucky	97	32. Wisconsin	91
8. Colorado	97	33. Nebraska	91
9. Georgia	96	34. Illinois	90
10. Alabama	96	35. Delaware	90
11. Rhode Island	96	36. Connecticut	90
12. Iowa	96	37. West Virginia	90
13. Utah	96	38. Ohio	90
14. Oregon	95	39. Missouri	89
15. New Mexico	95	40. North Dakota	88
16. Mississippi	95	41. New York	87
17. South Carolina	95	42. New Jersey	86
18. Minnesota	94	43. Pennsylvania	86
19. Idaho	94	44. Nevada	85
20. Tennessee	94	45. Montana	85
21. Kansas	94	46. Vermont	84
22. Wyoming	94	47. Florida	83
23. Indiana	93	48. Maine	81
24. Texas	93	49. New Hampshire	78
25. Virginia	93	50. South Dakota	76

How Payactiv bridges the gap

Benefits like Earned Wage Access (EWA) help millions of workers solve the livelihood gap in order to reach financial wellness.

When you use Payactiv, what do you spend on the most? Select all that apply.

What makes up livelihood

Livelihood needs and wants represent the basic human physiological necessities that include food, shelter and clothing for comfort. Financial wellness begins after Livelihood needs are met – and includes upper-order needs, such as self-esteem and self-actualization.

FINANCIAL WELLNESS: SAVINGS

Emergencies

Holidays

Travel

Gifts

Retirement

Education

Investments

LIVELIHOOD WANTS

Apparel & Footwear

Cable

Recreation

Travel

Home Items & Furnishings

Pet care

LIVELIHOOD NEEDS

Food

Fuel

Auto

Shelter

Phone & Internet

Various Insurances

Medical

Other

The livelihood gap: State by state comparison

In each state, wants —and sometimes even basic livelihood needs—typically go unmet.

Week-by-week Financial Life of a Person

The expenses at the beginning of the month typically exceed the first paycheck

livelihood

a means of securing the necessities of life
“Jobs are a primary way to secure livelihood.”

mean (average) wage

the total wages divided by the count of workers
“Average wage in the United States is $56,000.”

median wage

half the workers earn less than this number
“Median hourly wage in the United States is $20 and average hourly wage is $27.” “Difference between the US median and average wages is $16,000, or 40%.”

livelihood index

a standardized way to measure the Livelihood Gap