In which U.S. states is the economic climate bleakest?
To find out, WalletHub compared the states and Washington, D.C., in three key areas: economic activity, economic health, and innovation potential. It identified 23 relevant metrics, ranging from GDP growth, exports per capita and business startup activity to the unemployment rate, the number of residents lacking health insurance, and the unfunded liability of its pension plans.
Add in such additional factors as the foreclosure rate, the median annual household income, the immigration of U.S. knowledge workers, the number of independent-inventor patents, and entrepreneurial activity, and you get a picture of the state's overall economic climate.
States were ranked based on WalletHub's calculation of the overall score for each state using the weighted average across all metrics.
Hawaii
Often touted as paradise—if you can afford its higher-than-average taxes and cost of living—Hawaii came in 10th from the bottom because, among other things, its economic activity rank placed it at 50th—while, surprisingly, its export rate per capita was even lower: the lowest in the nation. For economic health, the state ranked 17th, but for innovation potential it only made 39th place.
It also ranked 44th in venture capital funding per capita and 49th in the percentage of jobs in high-tech industries—although who goes to Hawaii for tech? Unemployment isn't a problem in the state, though; it tied with North Dakota for the fifth-lowest unemployment rate in the country.
Oklahoma
The wind may come sweeping across the plain here, but a 39th place finish for economic activity isn't great. Neither is a 42nd place ranking for economic health or a 46th place ranking for innovation potential.
The state also finished 50th for exports per capita.
Alabama
Alabama's 37th place innovation potential outpaced the state's economic activity, at 44th place, and its 46th place economic health ranking.
Alabama residents will not be pleased to know that the state ranked 47th for median annual household income, and 48th for independent-inventor patents per 1,000 working-age residents.
Kentucky
The Bluegrass State's 30th place finish for economic activity makes a better showing than its 50th place ranking for economic health and 45th place for innovation potential.
Placing 49th for independent-inventor patents per 1,000 working-age residents isn't exactly a sterling recommendation, either; nor is Kentucky's 48th place for lowest state-government surplus per capita and for lowest median annual household income.
Louisiana
The Pelican State's economic activity isn't all that bad, at 29th place, probably thanks in part to its first-place tie with the state of Washington for most exports per capita, but its economic health—at 49th—and innovation potential—also at 49th—helped to drag it down.
Louisiana came in at 45th for venture funding capital per capita, near the bottom, at 48th, for nonfarm payrolls change. And the state was 49th for state-government surplus per capita and 50th in immigration of U.S. knowledge workers.
New Mexico
New Mexico's innovation potential was considerably higher, at 15th place, than either its economic activity—47th place—or its economic health, at 51st place.
But in a study in contrasts, it surprisingly comes in second place for the highest percentage of jobs in high-tech industries—yet finishes in 51st place, with the lowest immigration of U.S. knowledge workers of any state.
Maine
Maine was an outlier, a New England state finishing near the bottom. Its economic activity held it down to 48th place, while economic health was only 45th and innovation potential dragged in at 47th place.
Maine also had the fourth-lowest GDP growth in the country.
West Virginia
West Virginia's economic activity placed 43rd, while its economic health placed it in 47th place and its innovation potential was even worse, at 50th.
Interestingly, its GDP growth placed it at the other end of the scale, in fourth place, while the state finished dead last in business startup activity and tied for 48th place for its unemployment rate. It placed 49th for nonfarm payrolls change and for median annual household income, 50th for the percentage of jobs in high-tech industries, and 49th for the number of independent-inventor patents per 1,000 working-age residents.
Arkansas
For economic activity, the Natural State was right down near the bottom, at 49th; economic health was a tad better, at 36th, but innovation potential was at the very bottom: 51st place.
The state was 50th in median annual household income, 48th when it came to the percentage of jobs in high-tech industries, 50th for independent-inventor patents per 1,000 working-age residents, and 43rd in venture capital funding per capita.
Mississippi
The state ranked as having the worst economy in the union was Mississippi, due to its rankings of 51st in economic activity, 48th in economic health, and 44th in innovation potential.
Mississippi also placed 50th in GDP growth, 47th in unemployment, 51st in median annual household income, and 51st for independent-inventor patents per 1,000.
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