It is the state with the worst economy – 24/7 Wall St.

The health of a state’s economy depends on perspective. For businesses, the main considerations may be taxes and the extent to which the workforce can organize or demand benefits. For workers, the problems tend to be more on wages and insurance. For economists, the measures could be unemployment and the state’s gross domestic product. While it’s hard to say which of these should be the deciding factors, there are ways to combine them.

To determine the state with the worst economy, both in the years leading up to the pandemic and during it, 24/7 Wall St. created an index of five measures: economic growth over five years, growth in l employment over five years, poverty rate, unemployment rate and the proportion of adults with a bachelor’s degree or above. The state with the worst economy is Louisiana.

We have found that states with economies that rank at the bottom of the ladder depend on industries that have been hit hard by the COVID-19 pandemic. States like Hawaii and Nevada, where tourism is an economic mainstay, as well as states like Wyoming and Alaska that depend on resource extraction, rank lower on this list than they possibly could. -being without the pandemic. These are the Best and Least Managed States in America: A Survey of the 50.

Here’s how Louisiana ranks in each of our index measures:

> 5 years. annualized GDP growth until Q4 2020: + 0.3% (12th lowest)
> 5 years. annualized employment growth until March 2021: -0.8% (8th lowest)
> Unemployment rate March 2021: 7.3% (8th highest)
> Poverty rate: 19.0% (2nd highest)
> Share of adults with a bachelor’s degree or more: 25.0% (4th lowest)

Louisiana lost nearly 114,000 jobs during the pandemic, and in part as a result, employment is down 4.1% from five years ago. Currently 7.3% of the workforce in Louisiana is unemployed, one of the highest unemployment rates among the states and well above the national unemployment rate of 6.0%.

An estimated 19.0% of the state’s population live below the poverty line, the second largest share of any state and well above the national poverty rate of 12.3%. Widespread financial difficulties in Louisiana are indicative of deep-seated economic problems. Find out which is the best city to live in Louisiana here: The best city to live in each state.

Click here to see the state with the worst economy

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