WalletHub compared all 50 states and the District of Columbia across three broad categories – economic activity, economic health and innovation potential – to determine its rankings
Brett Davis
The Center Square Washington
Washington state has the best economy in the nation, according to a WalletHub study released on Monday.
The personal finance website compared all 50 states and the District of Columbia across three broad categories – economic activity, economic health and innovation potential – to determine its rankings. The study looked at 28 key indicators of economic performance and strength, including exports, unemployment rates, fiscal health, entrepreneurial activity and high-tech jobs.
Washington ranked as the top state overall. The Evergreen State ranked second in economic activity, 14th in economic health and second in economic potential.
WalletHub analyst Jill Gonzalez explained Washington’s first-place finish.
“It has a large share of fast-growing firms and the highest amount of exports per capita,” she told The Center Square. “The state also registered an almost 5% employment increase last year compared to 2021, it has a high median annual household income and a low foreclosure rate. The strong innovation potential in Washington is another factor that contributed to its overall ranking.”
According to WalletHub, Washington ranked high in several categories, including tying for first place with Texas, Oregon and Louisiana in terms of exports per capita.
Washington ranked second in terms of the average educational attainment of recent immigrants behind only the nation’s capital, Washington, D.C.
In terms of the percentage of jobs in high-tech industries, Washington ranked second, trailing only Massachusetts.
Washington took the top spot in a tie with California and Massachusetts for the number of independent patents per 1,000 members of the working-age population.
It wasn’t all good news, however, for Washington state.
“High unemployment and the amount of government deficit per capita are the state’s weakest points,” Gonzalez noted.
Washington tied with Delaware for the No. 47 spot in terms of the unemployment rate and came in at No. 46 for state-government surplus per capita.
Patrick Connor, the Washington state director for the National Federation of Independent Business, took some exception to WalletHub’s methodology and results.
“No small-business owner I know would agree with the rankings awarded to four of WalletHub’s Top 5 state economies,” he told The Center Square in an email.
He went on to explain what he meant, taking a jab at WalletHub in the process.
“With scores so heavily biased in favor of the tech sector, the patents that sector produces, and overall export volume, it’s no wonder Washington scored at the top,” he said. “If WalletHub actually believes the ‘studies’ it produces, I look forward to the announcement they are relocating their headquarters to Washington state.”
WalletHub is headquartered in Miami, Florida.
The 10 states – and state designate – with the best economies:
1. Washington
2. Utah
3. Massachusetts
4. Colorado
5. California
6. Idaho
7. North Carolina
8. District of Columbia
9. Texas
10. Arizona
The 10 states with the worst economies:
51. West Virginia
50. Louisiana
49. Alaska
48. Mississippi
47. Hawaii
46. Oklahoma
45. Kentucky
44. North Dakota
43. South Dakota
42. Maine
This report was first published by The Center Square Washington.
Also read:
- WA Senate Republicans unable to stop income tax bill now headed to governor’s desk
Washington lawmakers narrowly approved a new income tax on households earning over $1 million, setting the stage for court battles and a statewide initiative campaign. - 17th District lawmakers Kevin Waters and David Stuebe decry passage of state income tax bill after marathon floor debate
Reps. Kevin Waters and David Stuebe condemn Senate Bill 6346, warning the new state income tax sends more money into the general fund without real reform, risks expanding to every family, and ignores Washington’s affordability crisis. - Opinion: Washington’s fight for liberty
Conservative columnist Nancy Churchill argues that despite the passage of a new 9.9% state income tax, signs of shifting political momentum in Washington state give reason for hope and continued action. - 18th District Reps. Stephanie McClintock and John Ley denounce passage of state income tax
Following a marathon 24-hour House floor debate, 18th District Reps. Stephanie McClintock and John Ley denounce Senate Bill 6346, a new 9.9% state income tax on household income above $1 million, warning it could expand broadly, harm Washington’s economy, and face serious constitutional challenges. - County pays $7.5 million to widow of VPD Officer Donald Sahota
Clark County has agreed to pay $7.5 million to the widow of Vancouver Police Officer Donald Sahota to resolve a negligence lawsuit following the 2022 incident where a sheriff’s deputy mistakenly shot the off-duty officer during a confrontation with a robbery suspect. - Opinion: Brandi Kruse and I are feeling discouraged but we’re planning to continue advocating for political change. Will you?
Clark County Today Editor Ken Vance reflects on a discouraging week in Washington state politics, echoing Brandi Kruse’s frustrations over Democrats’ state income tax victory and local decisions on transit and ICE while urging conservatives not to give up on advocating for political change. - OII passes 60-day point in Vancouver Police Department use of deadly force investigation
The Washington State Office of Independent Investigations is just past 60 days into its investigation of a Vancouver Police Department use of deadly force involving officers Sean Donaldson and Christopher Holmquist and the death of 44-year-old Perry J. Sellars after a late-night disturbance call on NE 46th Street.
