WA has strongest economy across all U.S. states, report says. What makes state the best?
When a person brings up states with the largest economies, California immediately enters the conversation. The Golden State, home to industry juggernauts like Silicon Valley and Hollywood, is on pace to become among the top five world’s largest economies, Bloomberg reported in October.
However, the U.S. state with the best economy is actually Washington, and California is only the fifth best, according to a new report from personal finance site WalletHub.
WalletHub examined all 50 states, as well as the District of Columbia, and assessed their economic strength and performance based on 28 key indicators. These factors fell into three categories: economic activity, economic health and innovation potential. Among these groupings, indicators with high weight include:
GDP change
Exports per capita
Unemployment rate
Median household income adjusted for cost of living
Share of jobs in high-tech industries and STEM
Data sources that WalletHub used to form the ranking include the U.S. Census Bureau, Bureau of Labor Statistics, United Health Foundation and United States Patent and Trademark Office.
Source: WalletHub
WA state best economy
Washington ranks first overall out of all state economies, but it also ranks highly in other categories, WalletHub found. Of the three key dimensions, the Evergreen State ranked second for economic activity and innovation potential but is 14th for economic health.
The state also scored well in key metrics. Here are the notable areas where Washington excels:
1st (tie with LA, OR and TX) – Exports per capita
1st (tie with CA and MA) – Independent inventor patents per 1,000 working-age population
2nd – Average educational attainment of recent immigrants
2nd – Number of jobs in high-tech industries
However, Washington ranked poorly in other areas, such as the unemployment rate, where it tied with Delaware for 47th. The Evergreen State also made the bottom for state-government surplus per capita at 46th.
Mike Fong, director of Washington’s Department of Commerce, says he isn’t surprised the state topped WalletHub’s list.
“Washington continues to rank at the top for patents, high-tech jobs and exports, but there is still more work to do in terms of ensuring that every resident has access to economic opportunity and mobility, including quality education, workforce training and living wage jobs,” Fong stated in an email to McClatchy News. “This will keep Washington positioned to lead the nation as a preferred place to work and live for years to come.”
Fong adds that the state is driving growth across sectors such as aerospace, clean energy, life sciences and the maritime industry.
Washington is home to some of the world’s largest employers and manufacturers, including Amazon and Microsoft. Seattle, the center of much of Washington’s economic activity, is notable for being one of the best cities for STEM workers, according to a separate report from WalletHub earlier this year.
Despite prosperity in its tech industry, Washington’s unemployment rate of 4.1% is higher than the national average’s 3.6%, according to April data from Washington State’s Employment Security Department. Pierce County’s unemployment rate stands at 4.4%. The county with the highest unemployment rate, Ferry County, is nearly double at 8.1%.
U.S. state economy
After Washington, here are the states that fared as the best economy-wise:
Washington
Utah
Massachusetts
Colorado
California
On the other end of the list, the states that have the weakest economies in America include Louisiana, Alaska and West Virginia in last place.
