These Are the States with the Worst Economies in 2017
It’s a fact; not all the states in the U.S. are the same. Know that there are several states that are underperforming and their economies are struggling.
With this said, one must be wondering, which state has the worst economy.
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We have compiled a list of 10 U.S. states with the worst economies in 2017. These states were ranked by their gross domestic product (GDP) growth, household incomes, number of households living below the poverty line, unemployment rate, and several other factors.
Let us reiterate, the list is just not based on GDP and things like GDP per capita. The overall performance of the states was evaluated to find the states with the worst economies in 2017. Also, this list goes from states performing better to states performing worse—10 being the best in the worst performing states, and 1 being the state with the worst economy.
10. Alaska
In the list of 10 states with the worst economies in 2017, Alaska ranks the best of them. Over the past several years, Alaska’s economy has stalled. But this is mainly due to low commodity prices. This state could be dropped from this list if case commodity prices bounce back.
Also, remember that Alaska has the lowest population density compared to any other state.
Considering other factors such as household incomes and households living below the poverty line, Alaska holds a fairly high rank. Household income in the state is close to well above $70,000, and just a little more than 10% of households in the state live below the poverty line. (Source: “Best States Rankings,” U.S. News, last accessed April 6, 2017.)
You will see below how the state with the worst economy has almost half the household income and a significantly large number of households living below the poverty line.
9. Wyoming
Wyoming is one of those states whose economy isn’t really performing that well, but other factors in the state rank it one of the best spots on the top 10 states with the worst economies in 2017 list.
In 2015, the state’s GDP declined by 0.1%. In the third quarter of 2016, Wyoming’s GDP was registered at an annual pace of 0.3%. In the first two quarter of 2016, its GDP declined 10% and 5.3%, respectively. (Source: “Gross Domestic Product by State: Third Quarter 2016,” Bureau of Economic Analysis, February 2, 2017.)
The median household income in Wyoming is a little more than $60,000, with just a bit more than 10% of households living below the poverty line, and an unemployment rate of 4.9%, but one of the lowest job growth rates than other states.
When it comes to public safety and education, Wyoming sits relatively high compared to other states in the U.S.
8. South Carolina
South Carolina Ranks eighth on the list of top 10 states with the worst economies in 2017.
Here’s the thing; South Carolina ranks pretty high when it comes to GDP growth relative to other states, but other factors cause the state to show up on this list. In 2015, the state’s GDP increased by 2.5%. In the third quarter of 2016, it registered an annual growth rate of 3.7%.
Sadly, it doesn’t pare so well when it comes to household income, poverty, and unemployment.
The median household income in the state is a little above $40,000, well over 15% of the households live below the poverty line, and the unemployment rate for the state is over four percent.
Looking at public safety and education, South Carolina is one of the worst when compared other states.
7. Kentucky
Kentucky ranks seventh on the list of top 10 states with the worst economies in 2017.
It could be dubbed as one of the worst states in the U.S. to live financially. Median household income in Kentucky is just over $40,000, but 18.5% of the households in the state live below the poverty line.
This state has a labor force population lower than many states, and an unemployment rate of about five percent. When it comes to jobs growth, it’s not that great either—below 1.5% annually.
6. Pennsylvania
With a population of 12.8 million, and GDP of $689.17 billion, Pennsylvania sits sixth on the list of top 10 states with the worst economies in 2017.
Its GDP growth isn’t that great. In 2015, the state’s GDP grow by 2.8%, but then in the first three quarters of 2016, there were some problems. In the first quarter of 2016, its GDP was registered at an annual pace of negative 4.5%, then 0.5% in the second quarter, and 3.3% in the third quarter.
Median household income in the state is decent—a little below $60,000—but close to 15% of families live below the poverty line. Its unemployment rate is close to six percent and jobs growth is one of the worst in the county.
5. West Virginia
West Virginia is ranked fifth on the list of top 10 states with the worst economies in 2017.
Its GPD is dwindling. In 2015, West Virginia reported GDP growth of 1.4%. In the third quarter of 2016, its growth was registered at an annual rate of 0.9%. In the first quarter, GDP declined at annual rate of 5.9% and in the second quarter of 2016, it declined by 0.8%.
Know that West Virginia’s economy is very reliant on mineral resources such as coal and oil.
Median household income in the state is roughly $40,000 with well over 15% of households living below the poverty line.
West Virginia has one of the lower annual job growth rates among states with the worst economies, a high unemployment rate, and the lowest labor force participation rate.
4. Alabama
Overall conditions in Alabama put it fourth on the list of states with the worst economies in 2017.
GDP growth in the state isn’t anything to be proud of. It grew by 0.9% in 2015. In 2016, since we don’t have the data for the full year, in the first three quarters, GDP growth was not impressive by any measure.
On other fronts, Alabama isn’t doing so well either.
Consider this; unemployment rate in the state is awfully close to six percent, well above the national unemployment rate. Labor force participation rate is low and annual job growth rate is just above one percent.
When it comes to households living below the poverty line, Alabama is one of the worst. Close to 18% of the households live below the poverty line, and 18.8% of the entire population lives with food insecurity.
3. Arkansas
Arkansas is placed in the top three of the top 10 states with the worst economies in 2017.
The median household income for the state is just slightly above $40,000. Poverty is substantial. Almost one in five households in Arkansas live below the poverty line. Also, about 20% of the entire population has food insecurity.
Job growth rate in the state is below one percent and labor participation rate is a month the lowest of other states in the U.S.
But don’t just stop here. The business environment in Arkansas isn’t stellar. The average annual business birth rate in the state is 2.7%—this is compared to 3.8% in Florida. Patent creation—or number of patents granted per million—is very low as well.
2. Louisiana
Louisiana ranks second on the list of top 10 states with the worst economies in 2017.
GDP growth of the state is dismal. In fact, if you were to rank all the states by their economy, from best to worst, Louisiana would rank 45th!
The poverty rate in Louisiana is staggering, too. One in five households live below the poverty line, as household income is one of the lowest in the country as well.
Unemployment in Louisiana is above 6.2%. This is well above the national unemployment rate, and it’s one of the highest in all states.
Other factors that make Louisiana one of the states with the worst economies include education, public healthcare, quality of healthcare, and public safety.
1. Mississippi
Mississippi has the worst economy in the U.S.
On every possible front that could be assessed to evaluate an economy, Mississippi fails at it.
Its GDP growth is well below even the other worse performing and struggling states. Job growth is anemic while the labor force participation is one of the lowest in the nations. Business environment in the state is ranked one of the lowest as well.
When it comes to household income, Mississippi ha the lowest median household income in all states. 22% of the households live below the poverty line and 22.3% of the population lives with food insecurity.
This isn’t all. Mississippi is also one of the worst when it comes to households with internet access and public transit usage.
Below, we have created a table that shows the top 10 states with the worst economies in 2017, the GDP in billions of dollars and their population, in millions.
| Top 10 States with the Worst Economies in 2017 | |||
| Rank | Name of State | GDP in $ billion | Population in Millions |
| 1 | Mississippi | $107.10 | 2.99 |
| 2 | Louisiana | $243.31 | 4.67 |
| 3 | Arkansas | $123.20 | 2.98 |
| 4 | Alabama | $204.23 | 4.86 |
| 5 | West Virginia | $73.74 | 1.84 |
| 6 | Pennsylvania | $689.17 | 12.80 |
| 7 | Kentucky | $194.64 | 4.43 |
| 8 | South Carolina | $198.71 | 4.90 |
| 9 | Wyoming | $38.62 | 0.59 |
| 10 | Alaska | $52.80 | 0.74 |
