States Whose Economies Are Failing vs. States Whose Economies Are Thriving

Jordan Rosenfeld

17 June 2024 at 9:53 am·8-min read

After the economy righted itself in the wake of the pandemic and things seemed to be looking up in terms of unemployment rates and consumer spending, the U.S. entered a period of high inflation from which it hasn’t quite recovered.

As a result, some parts of the country may seem to be doing really well, while others are struggling. Though record high inflation has begun to level out some, an overall increase in cost of living has left a trace. Some states have already rebounded nearly to pre-pandemic levels, while others struggle to return to a state of balance.

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 growth rate and unemployment rates to wage changes and the percentage of a state’s population that is living in poverty as of March 2024. States — including Washington D.C., which is not a state, but a sizable economy — were divided into the top 15 and the bottom 15 based on their economy health. Read on to find out which states are struggling and which ones are thriving.

Also see how even in an improving economy, Americans are still struggling.

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States Whose Economies Are Failing

These states are still struggling with economic challenges. Although overall unemployment trends are improving, residents of these states may still have trouble finding jobs and contributing to the state’s GDP.

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DenisTangneyJr / Getty Images/iStockphoto

Louisiana

March 2024 unemployment rate: 4.4%
GDP growth Q3 2023 to Q4 2023: 3.2%
Average weekly wages Q1 2023: $1,107
Percent of population below poverty line 2022: 18.7%

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Mississippi

March 2024 unemployment rate: 3%
GDP growth Q3 2023 to Q4 2023: 4.2%
Average weekly wages Q1 2023: $927
Percent of population below poverty line 2022: 19.2%

Illinois

March 2024 unemployment rate: 4.8%
GDP growth Q3 2023 to Q4 2023: 3.6%
Average weekly wages Q1 2023: $1,346
Percent of population below poverty line 2022: 11.8%

Arkansas

March 2024 unemployment rate: 3.5%
GDP growth Q3 2023 to Q4 2023: 3.1%
Average weekly wages Q1 2023: $1,036
Percent of population below poverty line 2022: 16.2%

Kentucky

March 2024 unemployment rate: 4.5%
GDP growth Q3 2023 to Q4 2023: 4.1%
Average weekly wages Q1 2023: $1,092
Percent of population below poverty line 2022: 16.1%

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Michigan

March 2024 unemployment rate: 3.9%
GDP growth Q3 2023 to Q4 2023: 3.8%
Average weekly wages Q1 2023: $1,228
Percent of population below poverty line 2022: 13.1%

AppalachianViews / Getty Images/iStockphoto

West Virginia

March 2024 unemployment rate: 4.3%
GDP growth Q3 2023 to Q4 2023: 5.9%
Average weekly wages Q1 2023: $1,044
Percent of population below poverty line 2022: 16.8%

Ohio

March 2024 unemployment rate: 3.8%
GDP growth Q3 2023 to Q4 2023: 4.3%
Average weekly wages Q1 2023: $1,185
Percent of population below poverty line 2022: 13.3%

Oregon

March 2024 unemployment rate: 4.2%
GDP growth Q3 2023 to Q4 2023: 4.3%
Average weekly wages Q1 2023: $1,301
Percent of population below poverty line 2022: 11.9%

Oklahoma

March 2024 unemployment rate: 3.5%
GDP growth Q3 2023 to Q4 2023: 4.1%
Average weekly wages Q1 2023: $1,052
Percent of population below poverty line 2022: 15.2%

Jonathan Ross / Getty Images/iStockphoto

Tennessee

March 2024 unemployment rate: 3.2%
GDP growth Q3 2023 to Q4 2023: 4.8%
Average weekly wages Q1 2023: $1,199
Percent of population below poverty line 2022: 14

New Mexico

March 2024 unemployment rate: 3.8%
GDP growth Q3 2023 to Q4 2023: 6.1%
Average weekly wages Q1 2023: $1,096
Percent of population below poverty line 2022: 18.3%

Iowa

March 2024 unemployment rate: 2.9%
GDP growth Q3 2023 to Q4 2023: 1.1%
Average weekly wages Q1 2023: $1,112
Percent of population below poverty line 2022: 11.1%

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Indiana

March 2024 unemployment rate: 3.5%
GDP growth Q4 2022 to Q1 2023: 5.0%
Average weekly wages Q1 2023: $1,115
Percent of population below poverty line 2021: 12.3%

California

March 2024 unemployment rate: 5.3%
GDP growth Q3 2023 to Q4 2023: 4.8%
Average weekly wages Q1 2023: $1,613
Percent of population below poverty line 2022: 12.1%

States Whose Economies Are Thriving

If you live in one of these states, you’ve probably noticed the signs of economic improvement. Unemployment and GDP levels are recovering nicely in these areas. Here’s a look at the 15 states that are seeing the strongest signs of economic stability.

Utah

March 2024 unemployment rate: 2.8%
GDP growth Q3 2023 to Q4 2023: 6.7%
Average weekly wages Q1 2023: $1,195
Percent of population below poverty line 2022: 8.5%

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Idaho

March 2024 unemployment rate: 3.3%
GDP growth Q3 2023 to Q4 2023: 7.7%
Average weekly wages Q1 2023: $1,068
Percent of population below poverty line 2022: 11%

District of Columbia

March 2024 unemployment rate: 5.2%
GDP growth Q3 2023 to Q4 2023: 3.8%
Average weekly wages Q1 2023: $2,159
Percent of population below poverty line 2022: 15.1%

Virginia

March 2024 unemployment rate: 2.9%
GDP growth Q3 2023 to Q4 2023: 5.5%
Average weekly wages Q1 2023: $1,383
Percent of population below poverty line 2022: 10%

Muhammad Zulkifal / Getty Images/iStockphoto

Colorado

March 2024 unemployment rate: 3.7%
GDP growth Q3 2023 to Q4 2023: 5.1%
Average weekly wages Q1 2023: $1,431
Percent of population below poverty line 2022: 9.6%

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Washington

March 2024 unemployment rate: 4.8%
GDP growth Q3 2023 to Q4 2023: 5.9%
Average weekly wages Q1 2023: $1,682
Percent of population below poverty line 2022: 9.9%

Alaska

March 2024 unemployment rate: 4.6%
GDP growth Q3 2023 to Q4 2023: 6.3%
Average weekly wages Q1 2023: $1,328
Percent of population below poverty line 2022: 10.5%

Arizona

March 2024 unemployment rate: 3.8%
GDP growth Q3 2023 to Q4 2023: 6.8%
Average weekly wages Q1 2023: $1,248
Percent of population below poverty line 2022: 13.1%

New Hampshire

March 2024 unemployment rate: 2.6%
GDP growth Q3 2023 to Q4 2023: 5.6%
Average weekly wages Q1 2023: $1,350
Percent of population below poverty line 2022: 7.3%

Wyoming

March 2024 unemployment rate: 2.8%
GDP growth Q3 2023 to Q4 2023: 3.7%
Average weekly wages Q1 2023: $1,111
Percent of population below poverty line 2022: 10.7%

Massachusetts

March 2024 unemployment rate: 2.9%
GDP growth Q3 2023 to Q4 2023: 5.0%
Average weekly wages Q1 2023: $1,643
Percent of population below poverty line 2022: 9.9%

North Dakota

March 2024 unemployment rate: 2.0%
GDP growth Q3 2023 to Q4 2023: 2.0%
Average weekly wages Q1 2023: $1,205
Percent of population below poverty line 2022: 10.8%

South Carolina

March 2024 unemployment rate: 3.1%
GDP growth Q3 2023 to Q4 2023: 6.8%
Average weekly wages Q1 2023: $1,086
Percent of population below poverty line 2022: 14.4%

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Maine

March 2024 unemployment rate: 3.3%
GDP growth Q3 2023 to Q4 2023: 5.9%
Average weekly wages Q1 2023: $1,129
Percent of population below poverty line 2022: 10.9%

Florida

March 2024 unemployment rate: 3.2%
GDP growth Q3 2023 to Q4 2023: 7.0%
Average weekly wages Q1 2023: $1,218
Percent of population below poverty line 2022: 12.9%

John Csiszar contributed to the reporting of this article.

Methodology: GOBankingRates analyzed the following seven factors for each state and the District of Columbia to gauge the health of their economies: (1) the March 2024 unemployment rate according to the Bureau of Labor Statistics’ (BLS) Local Area Unemployment Statistics data; (2) the year-over-year change in non-farm payroll jobs as of March 2024 according to the BLS’s State and Metro Area Employment, Hours and Earnings data; (3) the Q4 2023 GDP per capita in current dollars, calculated by using population data from the Census Bureau’s American Community Survey (ACS) 2022 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 quarter of 2023 and the fourth quarter of 2023, also according to the BEA’s GDP release; (5) the average weekly wage in Q3 2023 according to the BLS’s Economic News Release; (6) the percent change in the average weekly wage between Q3 2022 and Q3 2023, also according to the BLS Economic News Release; and (7) the percent of the population that was living below the poverty line in 2022, according to the Census Bureau’s 2022 ACS 5-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 June 17, 2024.

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This article originally appeared on GOBankingRates.com: States Whose Economies Are Failing vs. States Whose Economies Are Thriving

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