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Ranked: The Best and Worst State Economies

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Ranked: The Best and Worst State Economies

Ranked: The Best and Worst State Economies

View the high resolution version of today’s graphic by clicking here.

On a global scale, the U.S. economy is massive at close to $19 trillion in size.

However, the United States is also the sum of its parts. America represents the union of 50 states and other jurisdictions such as D.C., and all of these state-level economies have their own unique problems to overcome, drivers of growth, and local resources that factor into their prosperity.

How can we compare these state economies on an even playing field?

Ranked: State Economies

Using absolute numbers, it’s hard to directly compare California ($2.75 trillion GDP, 39.5 million people) to a state like Vermont ($33 billion, 0.6 million people). By leveling the playing field, we can get an idea of how states contrast in terms of relative economic strength that companies and workers would better recognize.

Today’s infographic uses 27 metrics from WalletHub to rank state economies. These metrics are grouped into three major categories, which are evenly weighted:

1. Economic Activity: GDP growth, startup activity, exports per capita, and three other metrics
2. Economic Health: Labor force changes, median household income, unemployment, and 13 other metrics
3. Innovation Potential: Entrepreneurial activity, R&D investment, patents per capita, and three other metrics

Note: the full methodology with all 27 factors can be found here.

Here’s how the rankings shake down, for all 50 state economies and D.C.:

OverallStateTotal ScoreEconomic ActivityEconomic HealthInnovation Potential
1Washington76.5143
2California73.82262
3Utah73.8514
4Massachusetts73.34291
5District of Columbia67.13613
6Colorado66.41535
7Oregon65.76910
8New Hampshire62.517107
9Maryland61.018286
10Delaware59.8102015
11Idaho58.221219
12Michigan57.923338
13Virginia57.591823
14Arizona57.4162414
15North Carolina57.3241112
16Connecticut57.312459
17Minnesota56.6201617
18Georgia56.082129
19New York55.774418
20Texas55.4191521
21New Jersey55.1114711
22Florida54.5131230
23Missouri50.2341924
24South Carolina49.8142341
25Wisconsin49.2331431
26Vermont49.1353122
27Nebraska49.036734
28Indiana48.9262535
29Nevada48.1222740
30Pennsylvania47.7254127
31Montana47.7461325
32South Dakota47.139539
33Iowa47.0312237
34Illinois46.9274326
35Tennessee46.4291744
36Rhode Island46.0404020
37Ohio45.7304228
38Kansas44.3433432
39Hawaii43.7383038
40New Mexico42.1445116
41Alabama41.6323843
42North Dakota41.151836
43Wyoming39.4473245
44Kentucky38.9284648
45Maine38.9373647
46Alaska37.7503933
47Oklahoma37.1493742
48Arkansas35.9453550
49Mississippi35.0414846
50Louisiana33.2425049
51West Virginia28.1484951

Topping the list for overall score were the states of Washington, California, and Utah, and the first place state in each major category includes Washington (Economic Activity), Utah (Economic Health), and Massachusetts (Innovation Potential).

Case in Point

Looking at statistics and scoring methodologies alone can be a bit esoteric, so let’s look at some individual cases to see some contrast.

Utah (Rank: #3)
Utah consistently ranks as one of the top states for business, in the country, as well as a top state for job growth and employment. It’s also pretty unique in that it has a fairly diversified economy, with major sectors in the tourism, agriculture, tech, manufacturing, finance, energy, and mining industries.

Utah has a higher median household income ($65,977), and a blistering 3.4% employment growth rate.

Florida (Rank: #22)
Using this methodology, Florida falls somewhere in the middle of the rankings. The good news is the state has good employment growth (2.9%) and a myriad of thriving industries like aerospace. The bad news? Florida has the second-highest level of poverty in the union at 19%, and it also has a lower median household income ($50,860) than the national average.

Maine (Rank: #45)
Economic activity is sluggish in the country’s most northeastern state. With an aging population, slow employment growth (0.8%), and a number of lost manufacturing jobs over the last 15 years, the state is trying to rebound. Maine isn’t helped by having one of the highest tax burdens for its citizens and businesses in the country, either.

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The New Rules of Leadership: 5 Forces Shaping Expectations of CEOs

This infographic delves into five major forces reshaping our world and the new rules of leadership that CEOs should follow as a result.

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It’s common knowledge that CEOs assume a long list of roles and responsibilities.

But in today’s world, more and more people rely on them to go beyond their day-to-day responsibilities and advocate for broader social change. In fact, a number of external forces are changing how leaders are now expected to behave.

How can leaders juggle these evolving expectations while successfully leading their companies into the future?

The New Rules of Leadership

This infographic from bestselling author Vince Molinaro explores five drivers reshaping our world that leaders must pay attention to in order to bring about real change.

“the

How is the World Being Reshaped?

Leaders need to constantly stay one step ahead of the transformative forces that impact businesses on a broader scale.

Below we outline five key drivers that are changing what it means to be a leader in today’s world:

1. Transformative Technologies

Over the last number of decades, several technologies have emerged that could either accelerate the disruption of companies, or provide them with new opportunities for growth. According to KPMG, 72% of CEOs believe the next three years will be more critical for their industry than the previous 50 years.

For example, artificial intelligence (AI), can now provide companies with insights into what motivates their employees and how they can help them succeed. IBM’s AI predictive attrition program can even predict when employees are about to quit—saving them roughly $300 million in retention costs.

Leaders must accept that the future will be mediated by technology, and how they respond could determine whether or not their organization survives entirely.

2. Geopolitical Instability

Geopolitical risks—such as trade disputes or civil unrest—can have a catastrophic impact on a business’s bottom line, no matter its industry. Although 52% of CEOs believe the geopolitical landscape is having a significant impact on their companies, only a small portion say they have taken active steps to address these risks.

By being more sensitive to the world around them, leaders can anticipate and potentially mitigate these risks. Extensive research into geopolitical trends and leveraging the appropriate experts could support a geopolitical risk strategy, and alleviate some of the potential repercussions.

3. Revolutionizing the Working Environment

As the future of work looms, leaders are being presented with the opportunity to reimagine the inner workings of their company. But right now, they are fighting against a wide spectrum of predictions around what they should expect, with estimations surrounding the automation risk of jobs ranging from 5% to 61% as a prime example.

While physical, repetitive, or basic cognitive tasks carry a higher risk of automation, the critical work that remains will require human interaction, creativity, and judgment.

Leaders should avoid getting caught up in the hype regarding the future of work, and simply focus on helping their employees navigate the next decade.

By creating an inspiring work environment and investing in retraining and reskilling, leaders can nurture employee well-being and create a sense of connectedness and resilience in the workplace.

4. Delivering Diversity

Diversity and inclusion can serve as a path to engaging employees, and leaders are being asked to step up and deliver like never before. A staggering 77% of people feel that CEOs are responsible for leading change on important social issues like racial inequality.

But while delivering diversity, equity, and inclusion seems to be growing in importance, many companies are struggling to understand the weight of this issue.

An example of this is Noah’s Ark Paradox, which describes the belief that hiring “two of every kind” creates a diverse work environment. In reality, this creates a false sense of inclusion because the voices of these people may never actually be heard.

Modern day leaders must create a place of belonging where everyone—regardless of gender, race, sexual orientation, ability, or age—is listened to.

5. Repurposing Corporations

The drivers listed above ladder up to the fact that society is looking to businesses to help solve important issues, and leaders are the ones being held accountable.

With 84% of people expecting CEOs to inform conversations and policy debates on one or more pressing issues, from job automation to the impact of globalization, CEOs have the potential to transform their organization by galvanizing employees on the topics that matter to them.

For a long time, the purpose of corporations was purely to create value for shareholders. Now, leaders are obligated to follow a set of five commitments:

  1. Deliver value to customers
  2. Invest in employees
  3. Deal fairly and ethically with suppliers
  4. Support communities
  5. Generate long-term value for shareholders

Ultimately, these five commitments build currency for trust, which is critical for sustained growth and building a productive and satisfied workforce.

Lead the Future

If leaders understand the context they operate in, they can identify opportunities that could fuel their organization’s growth, or alternatively, help them pivot in the face of impending threats.

But organizations must invest in the development of their leaders so that they can see the bigger picture—and many are failing to do so.

By recognizing the new rules of leadership, CEOs and managers can successfully lead their organizations, and the world, into a new and uncertain future.

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3D Map: The U.S. Cities With the Highest Economic Output

The total U.S. GDP stands at a whopping $21 trillion, but which metro areas contribute to the most in terms of economic output?

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US Cities by Economic Output

3D Map: The U.S. Cities With the Highest Economic Output

At over $21 trillion, the U.S. holds the title of the world’s largest economy—accounting for almost a quarter of the global GDP total. However, the fact is that a few select cities are responsible for a large share of the country’s total economic output.

This unique 3D map from HowMuch puts into perspective the city corridors which contribute the most to the American economy at large.

Top 10 Metros by Economic Output

The visualization pulls the latest data from the U.S. Bureau of Economic Analysis (BEA, 2018), and ranks the top 10 metro area economies in the country.

One thing is immediately clear—the New York metro area dwarfs all other metro area by a large margin. This cluster, which includes Newark and Jersey City, is bigger than the metro areas surrounding Los Angeles and Chicago combined.

RankMetro AreaState codesGDP (2018)
#1New York-Newark-Jersey CityNY-NJ-PA $1.77T
#2Los Angeles-Long Beach-AnaheimCA$1.05T
#3Chicago-Naperville-ElginIL-IN-WI$0.69T
#4San Francisco-Oakland-BerkeleyCA$0.55T
#5Washington-Arlington-AlexandriaDC-VA-MD-WV$0.54T
#6Dallas-Fort Worth-ArlingtonTX$0.51T
#7Houston-The Woodlands-Sugar LandTX$0.48T
#8Boston-Cambridge-NewtonMA-NH$0.46T
#9Philadelphia-Camden-Wilmington PA-NJ-DE-MD$0.44T
#10Atlanta-Sandy Springs-AlpharettaGA$0.40T
Total GDP$6.90T

Coming in fourth place is San Francisco on the West Coast, with $549 billion in total economic output each year. Meanwhile in the South, the Dallas metroplex brings in $478 billion, placing it sixth in the ranks.

It’s worth noting that using individual metro areas is one way to view things, but geographers also think of urban life in broader terms as well. Given the proximity of cities in the Northeast, places like Boston, NYC, and Washington, D.C. are sometimes grouped into a single megaregion. When viewed this way, the corridor is actually the world’s largest in economic terms.

U.S. States: Sum of Its Parts

Zooming out beyond just these massive cities demonstrates the combined might of the U.S. in another unique way. Tallying all the urban and rural areas, every state economy can be compared to the size of entire countries.

US States and Country Comparison by GDP 2018

According to the American Enterprise Institute, the state of California brings in a GDP that rivals the United Kingdom in its entirety.

By this same measure, Texas competes with Canada in terms of pure economic output, despite a total land area that’s 15 times less that of the Great White North.

With COVID-19 continuing to impact parts of the global economy disproportionately, how will these kinds of economic comparisons hold up in the future?

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