Which states are on the move and which ones are standing still?
Now the U.S. is officially and firmly back in election mode in the run-up to the likely Trump/Biden rematch this coming November, the economy and jobs forecasts will again be the big news and a focus of attention.
Fears of a recession have thankfully not come to pass, inflation is falling but still stubbornly higher than many market analysts would like, while interest rates have risen to pre-Covid levels. All in all, job growth is solid if a little sluggish, but on aggregate, and considering the geopolitical challenges facing Uncle Sam and the world at large currently, the U.S. economic outlook is optimistic with a side order of caution.
If you’re thinking of moving to the U.S. or investing in it, you might be considering exactly where to go. With 51 states (plus the District of Columbia) and a wide variance of economic and taxation policies therein, there’s no shortage of choice when deciding which location would be best suited for you. As a general rule, so-called ‘red states’ (those with a longstanding Republican majority electorate and government) tend to be more business-friendly with lower taxes, less regulation, and weaker trade unions, while the ‘blue states’ (those with a longstanding Democratic electorate and government) tend to have higher taxes, stricter regulations, and stronger trade unions.
Ultimately, it depends on your individual needs and requirements as to which state is best for you, but for the purposes of this article, we will first list the 5 states with the highest jobs growth at present followed by the 5 states with lowest jobs growth. These should give you a pretty fair and representative panoramic view of the economic landscape in the listed states.
So without further ado, let’s go…
Nevada
The so-called Silver State is leading the way with strong and consistent jobs growth for the third consecutive year. The state’s tourist mecca of Las Vegas took a major hit during the Covid pandemic period, but has rebounded spectacularly, and saw a major coup this year in hosting the Super Bowl to record attendance, viewing figures, and tourist numbers. With low living costs and clement weather, the state is also seeing an influx of new residents that is further fuelling the economy and a booming labor market.
Employment Growth: 3.8%
South Dakota
Being a largely agricultural economy, South Dakota has taken a hit on the value of commodities like corn and soybeans since their market peak in mid-2022, however, lower feed costs, higher beef prices, and generous subsidies to farmers from the federal government have helped cushion the blow. With an abundance of land, an influx of new residents, and a booming housing market, the need for construction workers is helping fuel the jobs growth in the Mount Rushmore state.
Employment Growth: 3%
Idaho
The so-called Potato State had disappointing growth during the Covid pandemic and still has not fully rebounded from that hit, however, the tech industry which is a mainstay of the Idaho economy has seen consistent growth, including the construction of a Micron chip factory which will add fuel to the labor market.
Economic Growth: 3%
Wyoming
The drop in market prices for the Cowboy State’s oil and gas industry has hurt those respective lucrative revenue streams by decreasing need for further jobs growth, but the tourism sector is once again booming post-Covid thanks to national parks, and the additional plus of several energy-related facilities under construction at present will be a further opportunity for new payrolls.
Economic Growth: 2.8%
Texas
Yee-haa! The Lone Star State is currently enjoying a boom in new residents and migrating businesses, many of them fleeing the overtaxed, overregulated confines of neighboring California, bringing new jobs and sustained growth in their wake. Low costs, good weather, and a booming liquified natural gas sector (that is seeing increased demand as America looks for alternative energy sources) all are contributing to Texas becoming more and more a hub for new entrepreneurs and folks wanting an affordable and comfortable standard of living with good opportunities.
Economic Growth: 2.7%
Rhode Island
The Ocean State has the dubious honor of having the lowest growth rate in Uncle Sam, with a high tax burden, high costs, stagnant economy, and many of the brightest and best working across the state line in neighboring Boston, while the jobs market is hamstrung by a weak labor force and large retiree population.
Economic Growth: 0.4%
Vermont
Suffering much the same problems as Rhode Island, the Green Mountain State took an additional economic hit with a lack of snow hurting the skiing sector that has been further exacerbated by heavy rainfall this season. A chip production factory just recently opened should help employment figures and will cushion the blow from the recent closure of a Defense Department facility in the state.
Iowa
The largely agrarian-based Iowan economy took a blow with the drop in prices for corn and soybeans, while the finance and banking industry has also been stymied by stubbornly high interest rates.
Economic Growth: 0.6%
Mississippi
With a declining population, stagnant economy, and a higher-than-average poverty rate, the Hospitality State has not become so welcoming a prospect for inward investors of late with labor shortages and high unemployment attesting to that downward trajectory.
Economic Growth: 0.7%
Tennessee
The Volunteer State was ranked 4th in jobs growth in 2022 but that has since stalled with a significant increase in house prices as a consequence of an influx of new residents in recent years that also had the consequence of driving prices up and stalling further growth as a result.
Economic Growth: 0.7%
