Washington state, where I live, has the second best economy in the United States, according to an analysis by WalletHub, a personal finance website. Massachusetts is No. 1.
“A strong state economy doesn’t guarantee success for the state’s residents, but it certainly makes financial success more attainable,” said Chip Lupo, WalletHub analyst. “Factors like a low unemployment rate and high average income help residents purchase property, pay down debt and save for the future.”
Lupo said 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.
States with the best economies
1.Massachusetts
2. Washington
3. Utah
4. California
5. Delaware
6. North Carolina
7. New York
8. Texas
9. Colorado
10. Florida
States with the worst economies
42.Missouri
43. Oklahoma
44. Hawaii
45. Mississippi
46. Wyoming
47. Rhode Island
48. Maine
49. Louisiana
50. Kentucky
51. West Virginia
Top three states
Here’s why three states received the top rankings, according to the WalletHub analysis:
Massachusetts
Massachusetts has the best state economy, and it invests a lot more in both industry and academic R&D than most other states, which leads to big payoffs in economic growth. This has led to the state having the second-most invention patents per capita.
Massachusetts has a lot of workers in industries that propel the economy forward, too. It has the highest share of jobs in high-tech industries and the third-highest share of STEM – science, technology, engineering, and math – professionals.
In addition, Massachusetts has the highest percentage of firms that are listed on the Technology Fast 500 list.
Washington
Washington has the second-best state economy in the country, and it has the second-highest amount of industry R&D investment per capita, which allows it to be at the forefront of new tech. It has the second-highest share of jobs in high-tech industries and the second-highest share of STEM professionals.
In addition, Washington has the eighth-highest percentage of firms that are listed on the Technology Fast 500 list, and the third-highest number of invention patents per capita. This business growth and new technology will expand the economy even more in the future.
New immigrants to Washington are the 12th-most educated in the country, and the state has the fifth-highest median household income after adjusting for the cost of living.
Utah
Utah has the third-best state economy, and at more than $91,600, the median annual household income in the state is the highest in the country after adjusting for the cost of living. The state also has the seventh-highest share of STEM professionals, reflecting a highly skilled workforce.
The labor market in Utah is also very healthy. The state ranks third in business startup activity and sixth in the share of fast-growing firms, which contributes to job creation and a robust labor market.
Finally, Utah shows great potential for the future of business, with the fourth-highest growth rate in the number of businesses and the sixth-highest share of jobs in high-tech industries.
Final thoughts
I’m glad I live in Washington state. Although it’s one of the fastest growing states in the nation, which brings problems of how to provide for new growth, it was a good place to grow up and, later, build a professional life.
