Business Insider evaluated all states and the District of Columbia based on six indicators, including labor market and overall economic health—specifically unemployment rate, job growth, GDP per capita, GDP growth, average weekly wages, and wage growth. These assessments were then combined to calculate an overall economic score for each state, which was used to rank their economies.
The following are the 10 states with the best economies in the U.S.:
1. Washington, D.C.
As the capital of the United States, Washington, D.C. differs from other locations in several key respects. Perhaps most importantly for this ranking, the entire District of Columbia is a city, and urban areas tend to have more economic activity and higher wages than rural areas. This is one of the main reasons why D.C. ranks at the top of the list.
The District of Columbia had a GDP per capita of $190,737 in the third quarter of 2017, and an average weekly wage of $1,464.37 in December 2017, far exceeding the higher levels in the U.S., which offset the negative impact of its 6.0% unemployment rate in December 2017.
2. Washington State
Washington State's high-tech industry is on par with Silicon Valley, with tech giants like Amazon and Microsoft headquartered in the state.
Washington State's average weekly wage in December 2017 was $1,107.20, ranking 2nd highest in the U.S. Its GDP growth rate in the third quarter of 2017 was 4.3%, the 4th highest in the U.S.
The state ranks 7th in the nation for job creation, with a non-farm employment growth rate of 2.1% from December 2016 to December 2017.
3. Massachusetts
The Boston area in Massachusetts is home to world-class universities and colleges, which has spurred the booming growth of the city's technology and biotechnology industries.
Massachusetts' average weekly wage in December 2017 was $1,095.45, ranking 3rd highest in the U.S. Its GDP per capita in the third quarter of 2017 was $77,360, the 4th highest in the U.S.
4. Texas
While the oil fields of West Texas remain an important part of the state's economy, the three major cities of Dallas-Fort Worth, Houston, and Austin are all business and corporate hubs.
Texas' GDP growth rate in the third quarter of 2017 was 5.0%, ranking 2nd highest in the U.S. Its job growth rate ranked 4th, with a 2.5% increase in non-farm payroll jobs from December 2016 to December 2017.
5. Colorado
Denver is one of the fastest-growing regions in the U.S. economy, with a booming real estate market. Other parts of the state, including Boulder, are also seeing economic prosperity. Colorado has achieved well-rounded results across various economic indicators.
Colorado's unemployment rate in December 2017 was 3.1%, and its non-farm employment growth rate from December 2016 to December 2017 was 2.0%, ranking 10th.
6. California
California's economy is vast and diverse, ranging from farms that produce most of the nation's agricultural products to the gleaming laboratories of Silicon Valley and top-tier university campuses.
California's average weekly wage in December 2017 was $1,050.53, ranking 5th in the nation. Its GDP per capita in the third quarter of 2017 was $69,589, the 9th highest in the nation.
7. Utah
Utah has the 3rd highest job growth rate in the U.S., with non-farm employment increasing by 2.6% from December 2016 to December 2017.
Utah's GDP growth rate in the third quarter of 2017 was 3.9%, the 6th highest in the U.S.
8. Nebraska
While Nebraska remains a major agricultural state, Omaha is the home of legendary investor and Berkshire Hathaway CEO Warren Buffett.
Nebraska's unemployment rate in December 2017 was 2.7%, the 4th lowest in the U.S.
Its average hourly wage grew by 9.7% from December 2016 to December 2017, the 2nd highest growth rate in the U.S.
9. Rhode Island
Rhode Island's wage growth rate ranks 3rd in the U.S., with average hourly earnings increasing by 8.3% from December 2016 to December 2017.
The state's GDP growth rate in the third quarter of 2017 was 3.5%, well above the national average of 2.9%.
10. Maryland
Maryland's proximity to Washington, D.C. makes it the home to many federal government departments.
Maryland's average weekly earnings in December 2017 were $1,010.33, the 9th highest in the U.S.; earnings grew by 7.2% from December 2016 to December 2017, the 5th highest in the nation.
The 10 states with the least ideal domestic economic performance in the U.S.:
While the U.S. economy continues to grow, there are differences in economic and employment conditions across the 51 regions, including the 50 states and the capital district. Below, "Business Insider" compares economic indicators across U.S. states to rank the 10 states with the relatively least ideal economic growth.
1. Alaska
Historically, Alaska's economy has relied heavily on its abundant oil reserves. Unfortunately, Alaska ranks at the bottom of this list.
Although the state's GDP per capita in the third quarter of 2017 was $70,574 and the average weekly wage in December 2017 was $1,012.09, Alaska's labor market is the weakest in the U.S., with the highest unemployment rate of 7.3% in December 2017.
From December 2016 to December 2017, employment in the state fell by 0.7%, while almost all other states in the U.S. saw job growth.
2. Louisiana
Louisiana's GDP grew by 1.1% in the third quarter of 2017, the 2nd worst in the U.S. Its non-farm employment growth rate from December 2016 to December 2017 was 0.3%, the 4th worst in the nation.
3. New Mexico
New Mexico is home to the Los Alamos National Laboratory, where the atomic bomb was first developed during World War II.
New Mexico's average weekly wage in December 2017 was $723.07, far below the national average of $884.93, and the unemployment rate for the same month was 6.0%, tied for the 2nd lowest.
4. South Dakota
In the third quarter of 2017, South Dakota's GDP grew by only 0.5%, the lowest in the nation.
The state's average weekly wage in December 2017 was $733.50, ranking 3rd lowest.
Fortunately, its unemployment rate in December 2017 was 3.5%, lower than the national average unemployment rate of 4.0%.
5. Kentucky
Kentucky has traditionally relied on coal mining as an important part of its economy, but the shift toward alternative energy has hit this industry hard.
From December 2016 to December 2017, Kentucky's wage growth rate was only 0.8%, the 3rd lowest in the nation.
The state's average weekly wage in December 2017 was $769.89, ranking 7th lowest.
6. Mississippi
Mississippi's GDP per capita in the third quarter of 2017 was $37,849, and the average weekly wage in December 2017 was only $707.48.
7. West Virginia
West Virginia is one of the states most severely affected by the opioid epidemic in the U.S.
West Virginia's unemployment rate in December 2017 was 5.5%, ranking 4th highest in the U.S. Its non-farm employment growth rate from December 2016 to December 2017 was 0.2%, the 3rd lowest in the U.S.
The state's GDP per capita in the third quarter of 2017 was $42,770, ranking 4th lowest.
8. Kansas
Kansas is one of the states with the lowest job growth rates, with non-farm employment increasing by only 0.4% from December 2016 to December 2017, far below the national average of 1.3%.
However, despite slow growth, the state's unemployment rate in December 2017 was 3.4%, the 14th lowest in the nation.
9. Arkansas
Arkansas is home to the headquarters of Walmart, which is one of the largest private employers in the U.S.
Arkansas' GDP per capita in the third quarter of 2017 was $42,552, the 3rd lowest in the nation. The average weekly wage in December 2017 was $736.40, the 4th lowest in the U.S.
Fortunately, workers in the state earned more than the previous year: wages grew by 5.5% between December 2016 and December 2017, the 11th highest in the nation.
10. Tennessee
Tennessee's central location makes it a transportation and shipping hub, with FedEx headquartered in Memphis.
Tennessee's wage growth ranked 2nd lowest in the U.S., with average hourly wages increasing by only 0.5% from December 2016 to December 2017.
However, the state's unemployment rate in December 2017 was 3.2%, well below the national unemployment rate of 4.1%.
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