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Texas Has Ninth Best State Economy In The Country

The study analyzed and compared the economies of U.S. states and the District of Columbia based on three key categories — Economic Health, Economic Activity and Innovation Potential
Photo: Julia Sudnitskaya | Shutterstock

According to a new study, Texas was named the state with the ninth-best economy in the country.

In its report, "2023’s Best & Worst State Economies," personal finance website WalletHub analyzed and compared the economies of the 50 U.S. states and the District of Columbia based on three key categories related to the topic: Economic Health, Economic Activity and Innovation Potential.

Within each major category are a number of different metrics that helped determine the ranking of each U.S. state, ranging from unemployment rate, entrepreneurial activity, share of fast-growing firms and foreclosure rate, among others.

Texas ranked sixth overall in the Economic Health category. This was due to the state having the ninth-best annual median household income (adjusted for cost of living) and the second-best change in nonfarm payrolls.

In the Economic Activity category, Texas found itself placing 10th overall as a result of ranking high in significant metrics such as its exports per capita (where the state ranked number one), along with its change in GDP (fifth overall).

Finally, Texas placed in the upper half of the Innovation Potential category, ranking 23rd. This was because Texas was (coincidentally) the 23rd best state when it came to the percentage of jobs in high-tech industries that it offers, among other metrics.

According to the study, the top five states with the best economies in America included number one ranked Washington, followed by Utah, Massachusetts, Colorado and California.

The states with the worst economies included West Virginia (which ranked last), followed by Louisiana, Alaska, Mississippi and Hawaii.

In addition to the study itself, WalletHub also asked a number of experts about what they thought the top indicators were for states that possessed the best economies.

"There are dozens of potentially useful indicators to evaluate a state’s economy," said Janet Harrah, senior director of the Center for Economic Development and Business Research at Haile College of Business, Northern Kentucky University.

"I typically look at four primary indicators: attraction and retention of people; attraction and retention of jobs; increasing total payroll; and increases in average earnings per job that are keeping up with inflation and the region’s cost of living."

To put together its study, WalletHub gathered data from a variety of sources, including the U.S. Census Bureau, Bureau of Labor Statistics, Council for Community and Economic Research, United States Patent and Trademark Office, etc.

To view the full study, head over to the WalletHub website.