12 Worst States for Financial Stability

  Inflation has increased the risk of financial instability for many Americans. According to the U.S. Census Bureau, up to 46% of households in some areas struggle to pay for essentials. Anxiety induced by inflation and other factors is so high these days that a majority of Americans are more worried about poverty in retirement than about death, according to recent research. The Census Bureau's survey of households indicates that levels of financial stability vary across the country. SmartAsset recently undertook a study to find out where people are hurting most financially. Researchers ranked states based on an analysis of six metrics, with data coming from the Census Bureau's 2022 1-year American Community Survey and from its Household Pulse Survey, the Bureau of Labor Statistics Local Area Unemployment Statistics and the Department of Labor:

• Poverty rate, the percentage of residents living below the poverty line.
• Unemployment rate for February.
• Two-year change in unemployment rate, the two-year percentage point difference between the February 2024 and February 2022 unemployment rates.
• Unemployment benefit replacement rate, the ratio of the average unemployment benefit received to the average worker's weekly salary, with data annual for 2023.
• Percentage of adults experiencing recent housing insecurity, meaning households are not current on rent or mortgage where eviction or foreclosure in the next two months is either very or somewhat likely, based on survey responses from March 5 through April 1.
• Percentage of adults experiencing recent food insufficiency, meaning adults in households who either sometimes or often did not have enough to eat in the last seven days, based on data from the same survey.

See the gallery for the 12 states where residents are experiencing the most financial instability, according to SmartAsset's analysis.