What States Have The Strongest Economy?

What States Have The Strongest Economy?

strong economyEvery year, USNews.com ranks the states with the strongest economies. The rankings are based on a number of factors including growth, employment, and business environment. According to USNews.com, the ranking categories are defined and weighted as follows:

  • Growth (50%)
    • Growth measures the growth of the young population in the state, overall growth through migration, and the GDP growth rate.
  • Employment (30%)
    • The employment ranking tracks the three-year average of job growth, unemployment rates, and labor force participation rates.
  • Business Environment (20%)
    • This ranking gauges a state’s business environment based on the monthly birth rate or new businesses and the rate of parents for new inventions.

In some cases, a state may be stronger in one category than another. For example, Massachusetts is ranked fifth on this list. While Massachusetts is ranked 26th in terms of growth, the bay state ranks fourth in employment and second in business environment.

The Top Five “Best State for Economy”

USNews.com ranks the top states in terms of the economy every year. The results from 2017 are in and they are:

  1. Colorado
    1. Colorado took the number one overall spot by ranking second in growth, second in employment, and fourth in business environment. Overall, the state of Colorado’s economy had a great year. It continued to grow and new businesses began to form.
  2. North Dakota
    1. North Dakota had the second best years in terms of the USNews economy scale. Although the state has a low population, the residents we able to power the state to the top ranking for growth and the third spot in terms of employment ranking. These strong grades were enough to overcome a low business environment ranking of 21.
  3. California
    1. California is one of the larger states that made this list. California received strong grades for the growth category (5) and took the number one spot for business environment. California’s employment grade was the definition of mediocre, coming in a number 25.
  4. Utah
    1. Utah had the fourth strongest economy in 2017. The industry state ranked first in terms of employment and fifth in business environment. Utah’s weakest category was growth. The state placed 20th in this category.
  5. Massachusetts
    1. As previously mentioned, Massachusetts ranked fifth on the USNews “Best States for Economy” list. The state ranked well for business environment (2) and employment (4). While these numbers are great, Massachusetts placed below the median line for growth (26).

The states are ranked by metrics that have a relation between to the economy. Growth, employment, and business environment are all factors that contribute to the strength of the economy of each individual state. 2017 was a good year for the United State’s economy overall. The nation’s economy was powered by great years from states like Colorado, North Dakota, and California.