The COVID-19 pandemic sent economic shockwaves through the U.S. economy, tripling the monthly unemployment to nearly 15% and leading to a more than 30% quarterly decline in GDP — by far the largest economic contraction in U.S. history.
No corner of the country was untouched by the pandemic’s economic consequences — but some states have emerged better off than others. A range of factors, including industrial diversity, labor force education levels, household income, and long-term GDP growth, have an effect on a state’s overall economic strength — and its ability to withstand the impact of the pandemic.
To determine the states with the best and worst economies, both in the years leading up to the pandemic and during it, 24/7 Wall St. created an index of five measures — five-year economic growth, five-year employment growth, the poverty rate, unemployment rate, and share of adults with a bachelor’s degree or higher.
There are over a quarter million fewer people working in Michigan today than there were at this time last year. Job losses attributable to the pandemic contributed to a 2.7% decline in overall employment in the state from 2016 to 2021, one of the larger employment declines among states.
Economic growth has also been stagnant in Michigan in recent years. Due in part to a 4.2% economic contraction in the last year, Michigan’s five-year average annual GDP growth rate was just 0.4%, less than one-third the comparable 1.4% national growth rate.
All index components used to create this ranking were included at equal weight. All data used to create the index came from the Bureau of Labor Statistics and the U.S. Census Bureau. Additional state level data on economic output by industry from the Bureau of Economic Analysis. This is how all 50 state economies rank.
| Rank | State | Poverty rate | March 2021 unemployment rate | Avg. annual employment chg., March 2016 to March 2021 | Avg. annual GDP chg., Q4 2015 to Q4 2020 |
|---|---|---|---|---|---|
| 1 | Utah | 8.9% | 2.9% | +2.0% | +3.9% |
| 2 | Idaho | 11.2% | 3.2% | +2.3% | +3.9% |
| 3 | Washington | 9.8% | 5.4% | +1.2% | +4.3% |
| 4 | Colorado | 9.3% | 6.4% | +1.4% | +2.8% |
| 5 | New Hampshire | 7.3% | 3.0% | +0.2% | +0.6% |
| 6 | Nebraska | 9.9% | 2.9% | +0.0% | +1.2% |
| 7 | Minnesota | 9.0% | 4.2% | -0.1% | +1.1% |
| 8 | Massachusetts | 9.4% | 6.8% | +0.2% | +1.4% |
| 9 | Georgia | 13.3% | 4.5% | +1.7% | +2.2% |
| 10 | Oregon | 11.4% | 6.0% | +0.9% | +2.8% |
| 11 | Virginia | 9.9% | 5.1% | -0.2% | +1.2% |
| 12 | Kansas | 11.4% | 3.7% | +0.2% | +1.1% |
| 13 | Montana | 12.6% | 3.8% | +0.5% | +1.2% |
| 14 | South Dakota | 11.9% | 2.9% | +0.6% | +0.8% |
| 15 | Florida | 12.7% | 4.7% | +0.9% | +2.2% |
| 16 | Maryland | 9.0% | 6.2% | -0.6% | +1.0% |
| 17 | Arizona | 13.5% | 6.7% | +1.9% | +2.9% |
| 18 | Wisconsin | 10.4% | 3.8% | -0.2% | +0.8% |
| 19 | Vermont | 10.2% | 2.9% | -1.9% | -0.1% |
| 20 | North Carolina | 13.6% | 5.2% | +0.8% | +1.7% |
| 21 | Indiana | 11.9% | 3.9% | +0.1% | +1.5% |
| 22 | South Carolina | 13.8% | 5.1% | +0.9% | +1.8% |
| 23 | Maine | 10.9% | 4.8% | -0.7% | +1.0% |
| 24 | Alabama | 15.5% | 3.8% | +1.3% | +1.1% |
| 25 | Tennessee | 13.9% | 5.0% | +1.2% | +1.0% |
| 26 | Missouri | 12.9% | 4.2% | -0.0% | +0.7% |
| 27 | New Jersey | 9.2% | 7.7% | -0.9% | +0.3% |
| 28 | Iowa | 11.2% | 3.7% | -0.9% | +0.3% |
| 29 | Ohio | 13.1% | 4.7% | +0.0% | +0.7% |
| 30 | North Dakota | 10.6% | 4.4% | -0.6% | -0.4% |
| 31 | Texas | 13.6% | 6.9% | +0.6% | +1.7% |
| 32 | California | 11.8% | 8.3% | -0.6% | +2.4% |
| 33 | Delaware | 11.3% | 6.5% | +0.4% | -0.6% |
| 34 | Nevada | 12.5% | 8.1% | +1.5% | +1.9% |
| 35 | Michigan | 13.0% | 5.1% | -0.6% | +0.4% |
| 36 | Wyoming | 10.1% | 5.3% | -0.4% | -1.6% |
| 37 | Rhode Island | 10.8% | 7.1% | -0.8% | -0.5% |
| 38 | Oklahoma | 15.2% | 4.2% | +0.4% | -0.6% |
| 39 | Pennsylvania | 12.0% | 7.3% | -0.8% | +0.6% |
| 40 | Illinois | 11.5% | 7.1% | -1.6% | +0.2% |
| 41 | New York | 13.0% | 8.5% | -0.8% | +0.8% |
| 42 | Arkansas | 16.2% | 4.4% | +0.1% | +0.6% |
| 43 | Alaska | 10.1% | 6.6% | -0.8% | -0.8% |
| 44 | Connecticut | 10.0% | 8.3% | -2.4% | +0.1% |
| 45 | Kentucky | 16.3% | 5.0% | -0.1% | +0.5% |
| 46 | Hawaii | 9.3% | 9.0% | -2.1% | -0.5% |
| 47 | West Virginia | 16.0% | 5.9% | +0.3% | -0.2% |
| 48 | New Mexico | 18.2% | 8.3% | -0.1% | +1.1% |
| 49 | Mississippi | 19.6% | 6.3% | +0.1% | +0.5% |
| 50 | Louisiana | 19.0% | 7.3% | -0.8% | +0.3% |
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