States Whose Economies Are Failing vs. States Whose Economies Are Thriving
The swiftness with which the coronavirus pandemic wiped out the U.S. economy in early 2020 was breathtaking. Seemingly overnight, the U.S. unemployment rate shot up to an all-time record of 14.7% in April 2020. Both the overall rate of 14.7% and the 10.3% jump from the prior month were the highest on record since the Bureau of Labor Statistics began keeping statistics in January 1948. Since then, the economy as a whole has been steadily improving, both in terms of the unemployment rate and year-over-year GDP. However, as the U.S. is such a large country, with a wide diversity of states and economies, the recovery has thus far been uneven. Some states have already come back nearly all the way to normal levels, while others have been stuck behind.
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To determine which economies are thriving and which are failing, GOBankingRates took a look at a variety of economic factors, from year-over-year GDP and unemployment rates to wage changes and the percentage of a state's population that is living in poverty. States were divided into the top 15 and the bottom 15 and ranked in reverse order. Thus, the state in the worst current economic shape appears as No. 1 at the end of the "failing economies" section, while the only state in the nation thus far that shows a year-over-year percentage gain in employment appears as No. 1 under the "thriving economies" section.
Read on to find out which states are at the bottom and the top of this split recovery.
Last updated: Oct. 12, 2021
States Whose Economies Are Failing
These states have not yet been pulled up by the slow recovery in the American economy to the extent that some others have. Although overall unemployment trends are improving, residents of these states are still having trouble finding jobs and contributing to the state's GDP.
See: How Do We Track Unemployment and Joblessness?
15. Arkansas
Feb. 2021 unemployment rate: 4.5%
Year-over-year change in unemployment Feb. 2021: -2.8%
Q4 2020 GDP per capita: $44,328
GDP growth Q3 2020-Q4 2020: 5.1%
Average weekly wages Sept. 2020: $892
Percent change in average weekly wages Sept. 2019-Sept. 2020: 6.1%
Percent of population below poverty line 2019: 16.2%
Find Out: What the Unemployment Rate Means for You and the Economy
14. Rhode Island
Feb. 2021 unemployment rate: 7.3%
Year-over-year change in unemployment Feb. 2021: -8.7%
Q4 2020 GDP per capita: $58,245
GDP growth Q3 2020-Q4 2020: 2.6%
Average weekly wages Sept. 2020: $1,092
Percent change in average weekly wages Sept. 2019-Sept. 2020: 10.4%
Percent of population below poverty line 2019: 10.8%
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13. Oregon
Feb. 2021 unemployment rate: 6.1%
Year-over-year change in unemployment Feb. 2021: -7.8%
Q4 2020 GDP per capita: $62,109
GDP growth Q3 2020-Q4 2020: 2.7%
Average weekly wages Sept. 2020: $1,113
Percent change in average weekly wages Sept. 2019-Sept. 2020: 7.4%
Percent of population below poverty line 2019: 11.4%
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12. Illinois
Feb. 2021 unemployment rate: 7.4%
Year-over-year change in unemployment Feb. 2021: -7.5%
Q4 2020 GDP per capita: $69,422
GDP growth Q3 2020-Q4 2020: 3.5%
Average weekly wages Sept. 2020: $1,199
Percent change in average weekly wages Sept. 2019-Sept. 2020: 6.8%
Percent of population below poverty line 2019: 11.5%
11. Pennsylvania
Feb. 2021 unemployment rate: 7.3%
Year-over-year change in unemployment Feb. 2021: -7.2%
Q4 2020 GDP per capita: $62,497
GDP growth Q3 2020-Q4 2020: 3.7%
Average weekly wages Sept. 2020: $1,139
Percent change in average weekly wages Sept. 2019-Sept. 2020: 7.0%
Percent of population below poverty line 2019: 12.0%
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10. Michigan
Feb. 2021 unemployment rate: 5.2%
Year-over-year change in unemployment Feb. 2021: -7.5%
Q4 2020 GDP per capita: $53,008
GDP growth Q3 2020-Q4 2020: 1.7%
Average weekly wages Sept. 2020: $1,096
Percent change in average weekly wages Sept. 2019-Sept. 2020: 7.5%
Percent of population below poverty line 2019: 13.0%
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9. Wyoming
Feb. 2021 unemployment rate: 5.3%
Year-over-year change in unemployment Feb. 2021: -5.2%
Q4 2020 GDP per capita: $63,772
GDP growth Q3 2020-Q4 2020: 3.8%
Average weekly wages Sept. 2020: $939
Percent change in average weekly wages Sept. 2019-Sept. 2020: -0.4%
Percent of population below poverty line 2019: 10.1%
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8. Kentucky
Feb. 2021 unemployment rate: 5.2%
Year-over-year change in unemployment Feb. 2021: -5.1%
Q4 2020 GDP per capita: $48,655
GDP growth Q3 2020-Q4 2020: 4.3%
Average weekly wages Sept. 2020: $935
Percent change in average weekly wages Sept. 2019-Sept. 2020: 5.8%
Percent of population below poverty line 2019: 16.3%
Read: 24 Ways To Stretch Your Unemployment Benefits
7. Nevada
Feb. 2021 unemployment rate: 8.3%
Year-over-year change in unemployment Feb. 2021: -10.6%
Q4 2020 GDP per capita: $60,028
GDP growth Q3 2020-Q4 2020: 4.2%
Average weekly wages Sept. 2020: $1,048
Percent change in average weekly wages Sept. 2019-Sept. 2020: 7.8%
Percent of population below poverty line 2019: 12.5%
6. Oklahoma
Feb. 2021 unemployment rate: 4.4%
Year-over-year change in unemployment Feb. 2021: -5.4%
Q4 2020 GDP per capita: $48,508
GDP growth Q3 2020-Q4 2020: 3.5%
Average weekly wages Sept. 2020: $917
Percent change in average weekly wages Sept. 2019-Sept. 2020: 2.3%
Percent of population below poverty line 2019: 15.2%
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5. Hawaii
Feb. 2021 unemployment rate: 9.2%
Year-over-year change in unemployment Feb. 2021: -17.8%
Q4 2020 GDP per capita: $63,826
GDP growth Q3 2020-Q4 2020: 2.1%
Average weekly wages Sept. 2020: $1,114
Percent change in average weekly wages Sept. 2019-Sept. 2020: 10.3%
Percent of population below poverty line 2019: 9.3%
More: What Is the GDP - and What Does It Have to Do With You?
4. Mississippi
Feb. 2021 unemployment rate: 6.3%
Year-over-year change in unemployment Feb. 2021: -4.0%
Q4 2020 GDP per capita: $39,580
GDP growth Q3 2020-Q4 2020: 5.6%
Average weekly wages Sept. 2020: $810
Percent change in average weekly wages Sept. 2019-Sept. 2020: 5.6%
Percent of population below poverty line 2019: 19.6%
Read: What Is Inflation and What Does It Mean When It Goes Up or Down?
3. West Virginia
Feb. 2021 unemployment rate: 6.2%
Year-over-year change in unemployment Feb. 2021: -5.5%
Q4 2020 GDP per capita: $41,798
GDP growth Q3 2020-Q4 2020: 3.4%
Average weekly wages Sept. 2020: $913
Percent change in average weekly wages Sept. 2019-Sept. 2020: 1.8%
Percent of population below poverty line 2019: 16.0%
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2. Louisiana
Feb. 2021 unemployment rate: 7.6%
Year-over-year change in unemployment Feb. 2021: -7.8%
Q4 2020 GDP per capita: $53,229
GDP growth Q3 2020-Q4 2020: 3.0%
Average weekly wages Sept. 2020: $970
Percent change in average weekly wages Sept. 2019-Sept. 2020: 5.2%
Percent of population below poverty line 2019: 19.0%
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1. New Mexico
Feb. 2021 unemployment rate: 8.3%
Year-over-year change in unemployment Feb. 2021: -8.9%
Q4 2020 GDP per capita: $49,050
GDP growth Q3 2020-Q4 2020: 2.5%
Average weekly wages Sept. 2020: $944
Percent change in average weekly wages Sept. 2019-Sept. 2020: 5.1%
Percent of population below poverty line 2019: 18.2%
More: What You Actually Take Home From a $200,000 Salary in Every State
States Whose Economies Are Thriving
If you live in one of these states, consider yourself lucky. Unemployment and GDP levels are recovering nicely in these areas. Here's a look at the 15 states helping to lead America as a whole back to a full recovery.
Further Reading: Experts on What the Economy Will Be Like Post-Recovery
15. Kansas
Feb. 2021 unemployment rate: 3.2%
Year-over-year change in unemployment Feb. 2021: -4.9%
Q4 2020 GDP per capita: $61,274
GDP growth Q3 2020-Q4 2020: 4.0%
Average weekly wages Sept. 2020: $952
Percent change in average weekly wages Sept. 2019-Sept. 2020: 6.6%
Percent of population below poverty line 2019: 11.4%
Read: How To Recover After a Long Stretch of Bad Financial Luck
14. Connecticut
Feb. 2021 unemployment rate: 8.5%
Year-over-year change in unemployment Feb. 2021: -7.2%
Q4 2020 GDP per capita: $80,816
GDP growth Q3 2020-Q4 2020: 7.0%
Average weekly wages Sept. 2020: $1,328
Percent change in average weekly wages Sept. 2019-Sept. 2020: 7.4%
Percent of population below poverty line 2019: 10.0%
See: The 50 Cities Best Prepared To Reignite Their Economy and Job Market
13. Delaware
Feb. 2021 unemployment rate: 6.3%
Year-over-year change in unemployment Feb. 2021: -5.2%
Q4 2020 GDP per capita: $81,158
GDP growth Q3 2020-Q4 2020: 5.8%
Average weekly wages Sept. 2020: $1,150
Percent change in average weekly wages Sept. 2019-Sept. 2020: 6.8%
Percent of population below poverty line 2019: 11.3%
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12. Virginia
Feb. 2021 unemployment rate: 5.2%
Year-over-year change in unemployment Feb. 2021: -4.8%
Q4 2020 GDP per capita: $66,997
GDP growth Q3 2020-Q4 2020: 4.7%
Average weekly wages Sept. 2020: $1,201
Percent change in average weekly wages Sept. 2019-Sept. 2020: 6.4%
Percent of population below poverty line 2019: 9.9%
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11. Iowa
Feb. 2021 unemployment rate: 3.6%
Year-over-year change in unemployment Feb. 2021: -5.1%
Q4 2020 GDP per capita: $63,688
GDP growth Q3 2020-Q4 2020: 6.3%
Average weekly wages Sept. 2020: $969
Percent change in average weekly wages Sept. 2019-Sept. 2020: 6.0%
Percent of population below poverty line 2019: 11.2%
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10. Maryland
Feb. 2021 unemployment rate: 6.2%
Year-over-year change in unemployment Feb. 2021: -6.0%
Q4 2020 GDP per capita: $71,926
GDP growth Q3 2020-Q4 2020: 3.6%
Average weekly wages Sept. 2020: $1,277
Percent change in average weekly wages Sept. 2019-Sept. 2020: 9.5%
Percent of population below poverty line 2019: 9.0%
Read: 24% of Unemployed Americans Haven't Worked in a Year
9. Minnesota
Feb. 2021 unemployment rate: 4.3%
Year-over-year change in unemployment Feb. 2021: -7.0%
Q4 2020 GDP per capita: $69,290
GDP growth Q3 2020-Q4 2020: 4.7%
Average weekly wages Sept. 2020: $1,178
Percent change in average weekly wages Sept. 2019-Sept. 2020: 6.4%
Percent of population below poverty line 2019: 9.0%
See: Don't Let the Pandemic Keep You from Your Tax Refund - Here's How to File Fast (and Free)
8. District of Columbia
Feb. 2021 unemployment rate: 8.1%
Year-over-year change in unemployment Feb. 2021: -8.9%
Q4 2020 GDP per capita: $210,453
GDP growth Q3 2020-Q4 2020: 1.2%
Average weekly wages Sept. 2020: $1,962
Percent change in average weekly wages Sept. 2019-Sept. 2020: 6.1%
Percent of population below poverty line 2019: 13.5%
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7. Idaho
Feb. 2021 unemployment rate: 3.3%
Year-over-year change in unemployment Feb. 2021: 1.0%
Q4 2020 GDP per capita: $50,856
GDP growth Q3 2020-Q4 2020: 5.4%
Average weekly wages Sept. 2020: $884
Percent change in average weekly wages Sept. 2019-Sept. 2020: 5.5%
Percent of population below poverty line 2019: 11.2%
More: What Homes Will Be Worth in Your State by the End of 2021
6. Massachusetts
Feb. 2021 unemployment rate: 7.1%
Year-over-year change in unemployment Feb. 2021: -8.7%
Q4 2020 GDP per capita: $87,374
GDP growth Q3 2020-Q4 2020: 4.7%
Average weekly wages Sept. 2020: $1,488
Percent change in average weekly wages Sept. 2019-Sept. 2020: 9.7%
Percent of population below poverty line 2019: 9.4%
Read: How Long $1 Million in Savings Will Last in Every State
5. Washington
Feb. 2021 unemployment rate: 5.6%
Year-over-year change in unemployment Feb. 2021: -6.0%
Q4 2020 GDP per capita: $86,167
GDP growth Q3 2020-Q4 2020: 1.8%
Average weekly wages Sept. 2020: $1,482
Percent change in average weekly wages Sept. 2019-Sept. 2020: 11.0%
Percent of population below poverty line 2019: 9.8%
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4. Nebraska
Feb. 2021 unemployment rate: 3.1%
Year-over-year change in unemployment Feb. 2021: -2.9%
Q4 2020 GDP per capita: $69,500
GDP growth Q3 2020-Q4 2020: 6.3%
Average weekly wages Sept. 2020: $964
Percent change in average weekly wages Sept. 2019-Sept. 2020: 6.4%
Percent of population below poverty line 2019: 9.9%
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3. New Hampshire
Feb. 2021 unemployment rate: 3.3%
Year-over-year change in unemployment Feb. 2021: -5.4%
Q4 2020 GDP per capita: $64,757
GDP growth Q3 2020-Q4 2020: 3.8%
Average weekly wages Sept. 2020: $1,171
Percent change in average weekly wages Sept. 2019-Sept. 2020: 8.9%
Percent of population below poverty line 2019: 7.3%
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2. South Dakota
Feb. 2021 unemployment rate: 2.9%
Year-over-year change in unemployment Feb. 2021: -2.5%
Q4 2020 GDP per capita: $65,632
GDP growth Q3 2020-Q4 2020: 9.9%
Average weekly wages Sept. 2020: $918
Percent change in average weekly wages Sept. 2019-Sept. 2020: 7.2%
Percent of population below poverty line 2019: 11.9%
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1. Utah
Feb. 2021 unemployment rate: 3.0%
Year-over-year change in unemployment Feb. 2021: 0.4%
Q4 2020 GDP per capita: $65,494
GDP growth Q3 2020-Q4 2020: 7.1%
Average weekly wages Sept. 2020: $1,015
Percent change in average weekly wages Sept. 2019-Sept. 2020: 6.1%
Percent of population below poverty line 2019: 8.9%
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Methodology: GOBankingRates analyzed the following seven factors for each state and the District of Columbia to gauge the health of their economies: (1) the February 2021 unemployment rate according to the Bureau of Labor Statistics' (BLS) Local Area Unemployment Statistics data; (2) the year-over-year change in nonfarm payroll jobs as of February 2021 according to the BLS's State and Metro Area Employment, Hours, & Earnings data; (3) the Q4 2020 GDP per capita in current dollars, calculated by using population data from the Census Bureau's American Community Survey (ACS) 2019 5-year estimates and the Bureau of Economic Analysis's (BEA) most recent GDP by State release; (4) the percent by which GDP grew between the third and fourth quarters of 2020, also according to the BEA's GDP release; (5) the average weekly wage in September 2020 according to the BLS's Economic News Release; (6) the percent change in the average weekly wage between September 2019 and September 2020, also according to the BLS Economic News Release; and (7) the percent of the population that was living below the poverty line in 2019, according to the Census Bureau's 2019 ACS 1-year data. States were scored on all factors and ranked against each other based on their combined total score. The states with the lowest combined scores were identified as states with thriving economies and the states with the highest combined scores were identified as states with failing economies. All data was collected on and up to date as of March 29, 2021.
This article originally appeared on GOBankingRates.com: States Whose Economies Are Failing vs. States Whose Economies Are Thriving