The States with the Best and Worst Savings – 24/7 Wall St.
The COVID-19 pandemic has sent economic shockwaves through the US economy, tripling monthly unemployment to nearly 15% and leading to more than 30% asdecline in GDP – by far the biggest economic contraction at.S. history.
No corner of the country has been spared the economic consequences of the pandemic – but some states have come out better than others. A range of factors, including industrial diversity, educational levels of the workforce, household income, and long-term GDP growth, affect a state’s overall economic strength – and its ability to withstand the impact of the pandemic.
To determine which states had the best and worst economies, both in the years leading up to and during the pandemic, 24/7 Wall St. created an index of five measures – economic growth over five years, growth five-year employment rate, poverty rate, unemployment rate and proportion of adults with a bachelor’s degree or above.
Many states with economies at the bottom of this list depend on industries hit hard by the COVID-19 pandemic. States like Hawaii and Nevada, where tourism is a mainstay of the economy, as well as states like Wyoming and Alaska that depend on resource extraction, rank lower on this list than they possibly could. -be otherwise without the pandemic. Here’s a look at the states where people gave up looking for work during the pandemic.
GDP growth, one component of the index, is commonly used to assess the relative economic vitality of a given geography. Economic growth is often fueled by population growth, and many states with the fastest growing economies – in fact, many of the states with the best economies – also have rapidly growing populations. Americans move to many of the top-ranked states on this list, and those same states often have much higher than average birth rates. Here is an overview of the evolution of the population of each state since 2010.
Click here to see the states with the best and worst savings.
To determine which states have the best and worst economies, 24/7 Wall St. ranked states based on an index comprising five measures: GDP growth, employment growth, unemployment rate, the poverty rate and the baccalaureate graduation rate among adults. The average annual growth rate of GDP from Q4 2015 to Q4 2020 is taken from the Bureau of Economic Analysis and has been included in the index by weight. The average annual employment growth rate from March 2016 to March 2021 is taken from the Bureau of Labor Statistics and has been included in the full weight index. The seasonally adjusted unemployment rate in March 2021 was also taken from the BLS and was included in the full weight index. The share of the population living below the poverty line and the share of adults with a bachelor’s degree or above were from the 2019 U.S. Census Bureau survey and were included in the index based on total weight.
In addition to the index components, we took into account additional state data. Real GDP and contributions to real GDP growth by industry came from the BEA. Median household income, baccalaureate graduation rate, and proportion of workers commuting out of state to work were from ACS 2019. The Median Housing Value to Median Income Accessibility Ratio of Household is a 24/7 Wall Street calculation based on ACS data. Data on regional price parity, a measure of the cost of living, is from the BEA and is for 2019. Population changes due to natural causes and net migration from 2010 to 2020 are from the US Census Bureau. All data refer to the most recent period available.