The 5 states with the best economies in America right now — and the 5 worst
WalletHub set out to find the states that are thriving, and the ones that are lagging behind their neighbors economically
The economic health of U.S. states varies widely, due to factors such as job growth, income levels, business development, and overall financial stability.
While some states have relatively strong, thriving economies, others struggle with high unemployment rates, low wages, and contracting industries.
WalletHub set out to pick the states with the best and worst economies, looking at factors across three key metrics: economic activity, economic health, and investment potential. It considered everything from unemployment rates, change in GDP, exports per capita, and the share of the population in poverty.
“A strong state economy doesn’t guarantee success for the state’s residents, but it certainly makes financial success more attainable,” said WalletHub analyst Chip Lupo. “The best state economies also encourage growth by being friendly to new businesses and investing in new technology that will help the state deal with future challenges and become more efficient.”
Continue reading to see which states have the best — and the worst — economies.
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5th Worst: South Dakota
While South Dakota scored high marks for economic health, it suffered from poor rankings for economic activity and innovation potential.
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4th Worst: North Dakota
Like its neighbor to the south, North Dakota was dinged for low economic activity and meager innovation potential.
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3rd Worst: Hawaii
Hawaii may be a tourist hotspot, but it still scored low marks for economic activity and innovation potential.
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2nd Worst: West Virginia
West Virginia suffers from poor economic health and the lowest innovation potential, landing it the second to worst spot.
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Worst: Iowa
Iowa came in last, with the lowest score for economic activity and a low score for economic health, too.
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5th Best: New Hampshire
New Hampshire took fifth thanks to solid scores across all categories.
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4th Best: California
Despite coming in 47th place for economic health, California still managed to get the 4th spot since it scored second-highest for economic activity and third-highest for innovation potential.
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3rd Best: Washington
Washington state came in second for innovation potential and third for economic activity, helping it secure the 3rd spot.
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2nd Best: Utah
Utah ranked second thanks to its first-place ranking in economic activity, with solid scores in the other two categories.
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Best: Massachusetts
Massachusetts claimed the top spot with the highest innovation potential and strong showings in WalletHub’s other two categories.