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.
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