The States with the Best and Worst Economies

As the largest economy in the world, the United States comprises vastly different economic landscapes that can vary greatly from state to state. While some states boast thriving economies with low unemployment rates and growing GDPs, others struggle with high poverty rates and stagnant growth. Understanding the factors that contribute to these differences is critical for policymakers, business owners, and individuals looking to make informed decisions about where to live, work, and invest.

In states with thriving economies, residents often enjoy access to plentiful job opportunities, higher average wages, and a lower cost of living. These states are often characterized by a flourishing business environment, strong infrastructure, and a highly educated workforce.

On the other hand, some states with struggling economies may experience higher unemployment rates, fewer jobs, lower average wages, and a higher cost of living. Factors that can contribute to these struggles include weak infrastructure, limited access to capital, and disparities in income and education levels.

Today, we're taking a look at states in the country that are struggling the most, as well as the ones who are seeing an economic boom. Is your state rolling in the dough or struggling to make ends meet? 

Let's get started! 

In 2023, West Virginia faced economic struggles with an unemployment rate of 3.9%, indicating a certain level of joblessness within the state. The GDP growth from the second to the third quarter of 2022 stood at 2.8%, reflecting a moderate increase in economic activity. 

However, despite this growth, the average weekly wages for Q3 2022 remained at $1,042, suggesting a relatively stagnant income level for the population. Additionally, a significant concern was the high poverty rate, with 16.9% of the population living below the poverty line as of 2021. These factors highlight the challenges faced by West Virginia's economy in terms of employment, wages, and poverty.

South Dakota's economy has been thriving, with a January 2023 unemployment rate of only 2.1%, which is significantly lower than the national average. The state experienced solid GDP growth from Q2 to Q3 in 2022, with a 5.1% increase. Additionally, in Q3 2022, the average weekly wage in South Dakota was $1,994, which is higher than the national average and suggests that many residents are financially secure.

However, despite these positive indicators, poverty remains an issue in the state with 12.5% of the population falling below the poverty line in 2021. To continue building on South Dakota's economic success, policymakers may need to consider implementing policies that provide greater support for households living in poverty. Overall, while South Dakota's economy has been performing well, there is still work to be done to ensure that everyone in the state has access to economic opportunities and stability.

Mississippi, like other states, has faced recent struggles. The unemployment rate stood at 3.9%, indicating some level of joblessness within the state. However, there was a positive aspect in terms of GDP growth, as Mississippi experienced a growth rate of 5.0% from the second to the third quarter of 2022, reflecting a significant increase in economic activity.

On the downside, the average weekly wages for Q3 2022 were relatively low at $933, suggesting limited income opportunities for the population. Moreover, the high poverty rate remained a pressing concern, with 19.4% of the population living below the poverty line as of 2021. These economic indicators highlight the challenges faced by Mississippi, emphasizing the need for initiatives to improve employment opportunities, wages, and poverty levels.

Florida's economy thrived in early 2023, boasting a low unemployment rate of 2.6% in January. The state experienced exceptional economic growth, with a remarkable 9.6% increase in GDP from the second to the third quarter of 2022, signifying a flourishing economic landscape. 

Additionally, Florida recorded relatively high average weekly wages of $1,220 in Q3 2022, reflecting strong income opportunities for its residents. Moreover, the state showcased a commendable poverty rate, with only 13.1% of the population living below the poverty line in 2021. These impressive economic indicators highlight Florida's robust economic performance, marked by low unemployment, substantial GDP growth, competitive wages, and relatively low poverty rates.

Louisiana is another state with economic struggles recently. The unemployment rate stood at 3.5%, indicating a certain level of joblessness within the state. However, there was positive news in terms of GDP growth, as Louisiana experienced a robust growth rate of 5.2% from the second to the third quarter of 2022, signifying a significant increase in economic activity. Furthermore, the average weekly wages for Q3 2022 were relatively higher at $1,103, indicating better income opportunities for the population.

Despite these positive indicators, the state still faced challenges with a significant portion of the population, around 18.8%, living below the poverty line as of 2021. These economic statistics highlight both progress and areas for improvement in Louisiana's economy, emphasizing the need for continued efforts to address unemployment, wages, and poverty levels.

Idaho's economy has been thriving, with a January 2023 unemployment rate of only 2.7%, which is significantly lower than the national average. The state experienced impressive GDP growth from Q2 to Q3 in 2022, with an 8.9% increase, indicating strong economic activity. Additionally, while the average weekly wage in Q3 2022 was $1,063, which is lower than the national average, the cost of living in Idaho is also lower than many other states.

Nevertheless, poverty remains an issue in the state with 11.4% of the population falling below the poverty line in 2021. To continue building on Idaho's economic success, policymakers may need to consider implementing policies that provide greater support for households living in poverty. Overall, while Idaho's economy has been performing well, there is still work to be done to ensure that everyone in the state has access to economic opportunities and stability.

New Mexico has encountered economic challenges in 2023, grappling with an unemployment rate of 3.5%. However, there was a positive aspect regarding GDP growth, as the state experienced a growth rate of 4.9% from the second to the third quarter of 2022, reflecting a notable increase in economic activity. In terms of wages, the average weekly wages for Q3 2022 were $1,087, indicating relatively better income opportunities for the population.

Despite these encouraging factors, New Mexico still faced the issue of poverty, with 18.3% of the population living below the poverty line in 2021. These economic indicators shed light on the ongoing economic struggles in New Mexico and highlight the importance of addressing unemployment, fostering sustained growth, and alleviating poverty within the state.

Utah's economy demonstrated resilience and prosperity in the start of 2023, as reflected by its impressively low unemployment rate of 2.4%. The state experienced significant economic growth, with a notable 7.7% increase in GDP from the second to the third quarter of 2022, indicating a thriving economic landscape. Moreover, Utah boasted comparatively higher average weekly wages of $1,186 in Q3 2022, illustrating the presence of favorable income prospects for its workforce.

Additionally, Utah showcased a low poverty rate, with only 8.8% of the population living below the poverty line in 2021. These remarkable economic indicators highlight Utah's robust economic performance, characterized by low unemployment, substantial GDP growth, competitive wages, and a relatively low poverty rate.

Ohio faced a 4.0% unemployment rate in January of 2023. However, the state also witnessed positive economic growth, with a notable 6.0% increase in GDP from the second to the third quarter of 2022, indicating a robust economic expansion. Furthermore, Ohio recorded relatively higher average weekly wages of $1,187 in Q3 2022, providing better income opportunities for its residents.

Despite these favorable indicators, there remained a concern with 13.4% of the population living below the poverty line in 2021, emphasizing the need for continued efforts to address poverty and promote equitable economic growth within the state.

Nebraska's economy has been performing well, with a January 2023 unemployment rate of only 2.5%, which is significantly lower than the national average. The state also experienced solid GDP growth from Q2 to Q3 in 2022, with a 6.7% increase. Additionally, in Q3 2022, the average weekly wage in Nebraska was $1,117, which is higher than the national average and suggests that many residents are financially secure.

However, despite these positive indicators, poverty remains an issue in the state with 10.3% of the population falling below the poverty line in 2021. To continue building on Nebraska's economic success, policymakers may need to consider implementing policies that provide greater support for households living in poverty. Overall, while Nebraska's economy has been performing well, there is still work to be done to ensure that everyone in the state has access to economic opportunities and stability.

Wyoming's economy has been experiencing some challenges, despite the 3.9% unemployment rate in January 2023. GDP growth from Q2 to Q3 in 2022 was only at 2.5%, which is lower than anticipated. Additionally, the average weekly wages in Q3 2022 were $1,083, which may not be enough for some individuals and families to cover their basic needs.

Furthermore, almost 11% of the population in Wyoming still falls below the poverty line as of 2021. These economic indicators suggest that while Wyoming's economy has been making progress, there is still more work to be done to ensure better economic stability for its residents.

In January 2023, Virginia's economy exhibited strength and resilience, boasting a relatively low unemployment rate of 3.2%. The state experienced notable economic growth, with a substantial 7.6% increase in GDP from the second to the third quarter of 2022, reflecting a robust and thriving economic landscape. Furthermore, Virginia showcased higher average weekly wages of $1,380 in Q3 2022, indicating favorable income levels for its workforce. 

Additionally, the state demonstrated commendable progress in addressing poverty, with only 9.9% of the population living below the poverty line in 2021. These encouraging economic indicators highlight Virginia's successful economic performance, characterized by low unemployment, significant GDP growth, competitive wages, and a relatively low poverty rate.

Although Kentucky's unemployment rate in January 2023 was at 3.9%, the state continues to struggle with high poverty rates. In 2021, 16.3% of the population was below the poverty line. While there has been some progress, the average weekly wage in Q3 2022 was only $1,082, making it difficult for many residents to make ends meet.

Despite these challenges, Kentucky did experience significant GDP growth of 6.6% from Q2 to Q3 in 2022. While this growth is encouraging, it will take time to see how it translates into greater economic stability for Kentucky's residents.

Minnesota's economy has been thriving, with a January 2023 unemployment rate of only 2.9%, which is well below the national average. The state experienced impressive GDP growth from Q2 to Q3 in 2022, with a 7.6% increase that indicates strong economic activity. Additionally, in Q3 2022, the average weekly wage in Minnesota was $1,346, which is higher than the national average and suggests that many residents enjoy financial stability.

Despite these positive indicators, 9.2% of the population fell below the poverty line in 2021. To continue building on Minnesota's economic success, policymakers may need to focus on implementing policies that provide greater support for households living in poverty. Overall, while Minnesota's economy has been performing well, there is still work to be done to ensure that all residents have access to economic opportunities and stability.

Michigan's economy has made significant gains, with a January 2023 unemployment rate of 4.3%. This is a positive sign for the state's workforce. Additionally, Michigan experienced an impressive 7.5% GDP growth rate from Q2 to Q3 in 2022, indicating that the economy is moving in the right direction. In Q3 2022, the average weekly wage in Michigan was $1,236, which is higher than the national average. 

However, despite these positive indicators, poverty remains an ongoing issue. As of 2021, 13.3% of Michigan's population fell below the poverty line. To address this problem, policymakers may need to focus on increasing wages and implementing policies that support households in need. Overall, while Michigan's economy has made significant strides, it remains important to ensure that all residents have access to economic opportunities and stability.

Hawaii's economy experienced notable success in 2023, marked by a relatively low unemployment rate of 3.6%. The state demonstrated impressive economic growth, with a significant 10.2% increase in GDP from the second to the third quarter of 2022, showcasing a thriving and resilient economic landscape. Moreover, Hawaii recorded average weekly wages of $1,208 in Q3 2022, indicating favorable income levels for its workforce. 

Additionally, the state exhibited commendable progress in reducing poverty, with only 9.5% of the population living below the poverty line in 2021. These encouraging economic indicators highlight Hawaii's remarkable economic performance, characterized by low unemployment, substantial GDP growth, competitive wages, and a relatively low poverty rate.

Oklahoma's economy has shown some positive indicators, with a January 2023 unemployment rate of 3.1%, which is well below the national average. However, while the state experienced 4.4% GDP growth from Q2 to Q3 in 2022, this was lower than what was seen in other states. Additionally, the average weekly wage in Q3 2022 was $1,047, which is lower than the national average and may make it difficult for some Oklahoma residents to cover basic expenses.

In addition to these economic challenges, Oklahoma also struggles with poverty, with 15.2% of the population falling below the poverty line in 2021. To address this issue, policymakers may need to focus on increasing access to good-paying jobs and implementing policies that support households in need. While Oklahoma's economy has made some progress, there are still areas where improvements can be made to ensure greater economic stability for all residents

Colorado's economy has been performing exceptionally well, with a January 2023 unemployment rate of only 2.8%, which is well below the national average. The state experienced solid GDP growth from Q2 to Q3 in 2022, with a 7.3% increase, indicating strong economic activity. In Q3 2022, the average weekly wage in Colorado was $1,432, which is higher than the national average and suggests that many residents enjoy financial stability.

Despite these positive indicators, 8.5% of the population falls below the poverty line in 2021. But overall, Colorado's strong economic performance is a testament to the hard work and resilience of its residents, and it bodes well for a prosperous future.

California's economy has been thriving, with a January 2023 unemployment rate of 4.2%, which is lower than the national average. The state also experienced impressive GDP growth from Q2 to Q3 in 2022, with an 8.9% increase. In Q3 2022, the average weekly wage in California was $1,601, which is higher than the national average and suggests that many residents are doing well financially

However, despite these positive indicators, poverty remains an issue in the state, with 12.3% of the population falling below the poverty line in 2021. To address this problem, policymakers may need to focus on increasing access to good-paying jobs, implementing policies that support households in need, and investing in education and training programs. Overall, while California's economy has made significant progress, there is still work to be done to ensure greater economic stability for all residents.

Texas has been experiencing positive economic growth, with a January 2023 unemployment rate of only 2.8%, which is lower than the national average. The state also experienced solid GDP growth from Q2 to Q3 in 2022, with a 7.3% increase. Moreover, in Q3 2022, the average weekly wage in Texas was $1,432, which is higher than the national average and reflects a healthy job market and suggests that many workers are earning livable wages

Despite these positive indicators, 8.5% of the population falls below the poverty line in 2021. To ensure continued prosperity, it is crucial that policymakers focus on implementing policies that provide greater support for households living in poverty. Overall, while Texas' economy has been performing well, there is still work to be done to ensure that all residents have access to economic opportunities and stability.