The States With the Best Economic Growth

Where Should Millennials Live for the Most Successful 2017?

In the late 2000s a great recession hit the American economy and all 50 states were affected. Unemployment rocketed, GDP crashed, and successful new businesses became few and far between.

The recession has officially been over since mid-2009, but some states are recovering better than others.

At Expert Market we researched the growth/decline in the 5 years following the end of the recession of 6 key factors;



FactorDetails
UnemploymentAll 50 states decreased unemployment over the years 2010-2015. Utah had the biggest change 15.12% and Louisiana had the least 0.36%.
GDP per capita43 states saw a rise in GDP, North Dakota had the biggest growth 4.54% while Wyoming saw the biggest drop -1.45%.
Startup density37 states grew the rate of new businesses over 5 years. North Dakota by the most 5.56%. 13 states saw a loss in density, with Louisiana’s the worst at -1.45%.
House valueHouse values increased in 42 states, the highest increase of 7.63% was Nevada. The highest loss in value was 6.44% in Maine.
New entrepreneursOnly 17 states saw a rise in the amount of people opening their own business. Hawaii saw the biggest rise 6.62% while Georgia saw the biggest decline 12.56%.
Household incomeAll states saw an increase in average household income over 2010-2015. North Dakota had the biggest increase 4.10% and Nevada saw the smallest change 0.75%.

Using data from the Bureau of Labor Statistics, Bureau of Economic Analysis, the Kauffman Index and property experts Zillow, we ranked each state by the percentage growth or decline in each factor over the years 2010-2015.

Combining these rankings gave us an overall look into which states have bounced back and now offer great opportunities for those looking to start or grow their careers.

The Top 10

Here are the top 10 states that you should consider moving to if you are hoping for a bright and successful future;

StateOverall RankingUnemploymentHouse ValueNew EntrepreneursGDP per CapitaStartup DensityHousehold Income
North Dakota1st43rd5th23rd1st1st1st
Oklahoma2nd26th16th11th2nd20th2nd
Texas3rd14th11th21st3rd19th15th
Michigan4th2nd7th15th6th14th46th
California5th20th2nd36th5th7th28th
Montana6th24th32nd17th10th12th4th
Ohio7th4th27th28th4th17th22nd
Washington8th19th12th25th19th15th13th
Minnesota9th5th15th13th8th40th24th
Massachusetts10th29th13th19th21st11th17th

North Dakota

North Dakota
Category% Change 2010-2015Ranking
Unemployment Growth7.42%43rd
Rise in House Value5.77%5th
Rate of New Entrepreneurs-0.86%23rd
GDP per Capita Growth4.54%1st
Rise in Startup Density5.56%1st
Household Income Increase4.10%1st

The Peace Garden State on the northern border of the United States and Canada has been anything but sleepy in the years since the recession. A huge surge in oil extraction has seen their GDP rise by 4.54% per capita - far more than any other state. New business density and household income have also both risen here more than anywhere else. Unemployment has decreased but at a slower pace than many other states at only 7.72% - 8th lowest across the country.

Oklahoma

Oklahoma
Category% Change 2010-2015Ranking
Unemployment Growth10.22%26th
Rise in House Value2.66%16th
Rate of New Entrepreneurs1.48%11th
GDP per Capita Growth2.45%2nd
Rise in Startup Density0.60%20th
Household Income Increase2.45%2nd

Another state with huge growth in GDP and household income, Oklahoma scored in the top half for every single category. Lower scores for startup density and house values stopped them from grabbing the top spot - despite scoring 17 places higher than North Dakota for a 10.22% decrease in unemployment.

Texas

Texas
Category% Change 2010-2015Ranking
Unemployment Growth11.73%14th
Rise in House Value3.96%11th
Rate of New Entrepreneurs-0.74%21st
GDP per Capita Growth2.32%3rd
Rise in Startup Density0.79%19th
Household Income Increase1.94%15th

A 2.32% rise in GDP and 3.96% house value increase over 5 years secures Texas a place in the top 3. Housing a tech hub like Austin means it's no surprise that the biggest state scored well for reducing unemployment too, an 11.73% drop put them in 14th place.

Michigan

Michigan
Category% Change 2010-2015Ranking
Unemployment Growth14.92%2nd
Rise in House Value4.57%7th
Rate of New Entrepreneurs0.92%15th
GDP per Capita Growth1.58%6th
Rise in Startup Density0.97%14th
Household Income Increase1.34%46th

It's not all lying around on boats in Michigan! In fact, the Great Lakes State has been working hard since the recession, reducing unemployment by an impressive 14.92% - second highest of any state, just behind Utah’s incredible 15.12% drop. Whist it has risen by 1.34%, household income has not been growing as quickly in Michigan as most other states, they ranked 5th worst for this factor.

California

California
Category% Change 2010-2015Ranking
Unemployment Growth10.73%20th
Rise in House Value6.19%2nd
Rate of New Entrepreneurs-2.49%36th
GDP per Capita Growth1.70%5th
Rise in Startup Density1.16%7th
Household Income Increase1.69%28th

Property prices have always been high in California, but anyone who owns a home there should be very happy with the 6.19% increase in house values over the past 5 years. California has also seen big growth in GDP per capita and startup density, ranking 5th and 7th respectively, perhaps in part due to the huge amount of new companies appearing in Silicon Valley every year.

Montana

Montana
Category% Change 2010-2015Ranking
Unemployment Growth10.30%24th
Rise in House Value0.95%32nd
Rate of New Entrepreneurs0.06%17th
GDP per Capita Growth1.36%10th
Rise in Startup Density1.04%12th
Household Income Increase2.35%4th

A 4th place score for rise in household income (2.35%), along with average to good scores across the board sees Montana just outside the top 5 but still firmly within the top 10. Having only a small rise in house values (0.95%) let them down and saw them place 32nd for that metric - still better than the 8 states that actually saw a loss in property values over the 5 years.

Ohio

Ohio
Category% Change 2010-2015Ranking
Unemployment Growth14.06%4th
Rise in House Value1.34%27th
Rate of New Entrepreneurs-1.44%28th
GDP per Capita Growth2.03%4th
Rise in Startup Density0.86%17th
Household Income Increase1.79%22nd

Impressive 4th place rankings for both unemployment decrease (14.06%) and GDP per capita growth (2.03%), combined with average scores for all other factors, brought up the overall ranking of Ohio to 7th place.

Washington

Category% Change 2010-2015Ranking
Unemployment Growth10.99%19th
Rise in House Value3.56%12th
Rate of New Entrepreneurs-1.07%25th
GDP per Capita Growth0.86%19th
Rise in Startup Density0.91%15th
Household Income Increase1.95%13th

Washington, DC may have the White House, but Washington state in the north western corner of the US has strong economic growth, so who’s the real winner? Scoring within the top half for all factors gave the Evergreen State a place firmly within the top 10.

Minnesota

Minnesota
Category% Change 2010-2015Ranking
Unemployment Growth13.56%5th
Rise in House Value2.70%15th
Rate of New Entrepreneurs1.00%13th
GDP per Capita Growth1.51%8th
Rise in Startup Density-0.21%40th
Household Income Increase1.78%24th

Bordering 1st place North Dakota, Minnesota has had the 5th highest decrease in unemployment (13.56%) since the recession ended. This large northern state also showed an impressive growth in GDP but was let down by their 0.21% loss in startup density, placing them among the 13 states that saw a loss in new business opening rates.

Massachusetts

Massachusetts
Category% Change 2010-2015Ranking
Unemployment Growth9.84%29th
Rise in House Value2.92%13th
Rate of New Entrepreneurs-0.33%19th
GDP per Capita Growth0.84%21st
Rise in Startup Density1.09%11th
Household Income Increase1.87%17th

Rounding out our top 10 is the home of MIT. As Boston is one of the top 10 tech hubs to live in, it is no surprise that MA saw a healthy 1.09% rise in startup density, placing them 11th for that category and 10th overall.

The Bottom 10

StateOverall RankingUnemploymentHouse ValueNew EntrepreneursGDP per CapitaStartup DensityHousehold Income
New York41st41st41st20th27th47th14th
Vermont42nd31st46th26th25th42nd20th
Mississippi43rd37th45th27th38th44th7th
West Virginia44th47th38th29th29th46th10th
Arkansas45th45th26th48th15th37th29th
Georgia46th35th18th50th24th34th40th
Arizona47th23rd4th44th43rd41st47th
Maine48th32nd50th34th46th36th19th
New Mexico49th48th49th45th33rd21st36th
Louisiana50th50th33rd47th49th50th41st

New York ranked in the top half of states for a few factors but a very low score for startup density growth sees them starting off our bottom 10. The highest individual rank of any state within the bottom 10 was Arizona’s impressive 5.88% increase in house values which saw them in 4th place for that category. Unfortunately, poor scores across the rest of the board, particularly for household income and rate of new entrepreneurs means they sit firmly within the bottom 10.

However, just because a state ranked in the bottom 10 does not mean that there is no economic growth there. For example, Louisiana ranked in bottom place for reducing unemployment - even though unemployment did drop there by 0.36%. Louisiana actually saw positive growth in 3 out of 6 categories, so if your state is close to the bottom it doesn’t necessarily mean that their economy is dwindling - it may just not be growing quite as fast as in other states.

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