#5: Kentucky
Kentucky’s position comes from a combination of low wages, limited urban growth, and ongoing struggles in former coal-mining regions. Many workers remain concentrated in lower-paying sectors, and health challenges in the population make workforce participation rates lower than the national average, which slows economic momentum.

Kentucky could see gains by strengthening its manufacturing base, supporting logistics and automotive expansion, and improving healthcare access to boost its workforce. Investments in education and job retraining may help residents transition into higher-paying industries. Over time, these efforts could pull the state closer to the national income middle.
