Which U.S. state has the finest economy? Study rates Florida among top 10
Did you know that Florida, California, Texas, and New York have economies so large that if they were countries, they would be in the top 20 in the world?
Personal finance startup WalletHub recently produced research that evaluates all 50 states by identifying which have the greatest and worst economies based on variables such as changes in GDP, unemployment rates, and business growth. And Florida was ranked in the top ten on the “best” list.
“A strong state economy doesn’t guarantee success for the state’s residents, but it certainly makes financial success more attainable,” WalletHub analyst Cassandra Happe said in the report.
“Factors like a low unemployment rate and high average income help residents purchase property, pay down debt and save for the future.”
Here’s the states topped WalletHub’s ranking of the greatest economies, where Florida ranked, and why.
Which US state has the best economy?
According to WalletHub’s research, Washington has the finest state economy in the United States for a variety of reasons.
Washington has the second-highest concentration of high-tech jobs and STEM experts in the country.
“Additionally, Washington boasts the fourth-highest percentage of enterprises on the Technology Fast 500 list and the third-highest number of inventive patents per capita.” Based on the survey, corporate growth and new technology will further expand the economy in the future.
“To top things off, new immigrants to the Evergreen State are the fifth-most educated in the country, and the state has the sixth-highest median household income after adjusting for the cost of living.”
Which are the top ten economies in the United States?
According to the WalletHub rankings, Florida has the sixth-greatest economy in the United States.
Florida also ranked well in two separate categories: first in startup activity and second in nonfarm payrolls.
Nonfarm payrolls are a monthly statistic that counts the number of jobs in the state, omitting farm workers, private home employees, non-profits, local government, unincorporated business owners, and active military service personnel.
According to WalletHub’s research, the top ten best state economies in the United States are as follows:
- Washington
- Utah
- Massachusetts
- Texas
- California
- Colorado
- Florida
- North Carolina
- District of Columbia
- Arizona
What is the most reliable indication of a state’s economy?
GDP (gross domestic product) is the most commonly used measure by economists to assess the health of a country or region’s economy.
GDP is defined as the total market value of final goods and services generated within a country, state, or territory in a given year. In its “What is GDP?” handbook, the Bureau of Economic Analysis explains the four-part formula used to calculate GDP.
However, GDP is not the only economic measure that matters.
“Conventional indicators include state-level GDP, unemployment, inflation, and government budgets. Libo Xu, an assistant professor of economics, told WalletHub that they assess overall income, labor market conditions, living costs, and government actions.
Moreover, Xu cited two more, less conventional indications in the study.
“One is the distribution of people according to age group. “The state that retains and attracts many young people will perform better economically,” Xu stated.
“Another indicator is the percentage of small businesses in the economy.” Small firms provide major work prospects, despite their low monetary value and size. They are important for a vibrant labor market.
In January, Florida ranked third on WalletHub’s list of the top states for starting a business in 2024.
According to a January research, Florida’s working-age population (ages 16-64) is rising at a quicker rate than other states.
“Florida also has more entrepreneurs and startup firms relative to its population than most other states.”
This article originally appeared on Naples Daily News
