Louisiana has second worst economy says new report

Louisiana has the second worst state economy in the nation according to a new study.

WalletHub compared the 50 states and the District of Columbia across 28 indicators of economic performance and strength. The data set ranges from GDP growth to startup activity to share of jobs in high-tech industries.

Louisiana ranked 50 out of 51, beating out only Alaska. Washington ranked No. 1.

Economic performance of Louisiana (1=Best; 25=Avg.):

  • T-1st – Most Exports Per Capita
  • 42nd – GDP Growth
  • 31st – Government Surplus/Deficit per Capita
  • 36th – Unemployment Rate
  • 39th – Startup Activity
  • 43rd – Annual Median Household Income
  • 46th – Change in Nonfarm Payrolls
  • 47th – % of Jobs in High-Tech Industries

In order to determine the best state economies, WalletHub compared the 50 states and the District of Columbia across three dimensions: 1) Economic Activity, 2) Economic Health and 3) Innovation Potential.

For Louisiana, its Economic Activity score was 39, Economic Health was 47, and Innovation Potential was 49.

Those dimensions were evaluated using 28 metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the highest economic performance.

Each state’s weighted average was determined across all metrics to calculate its overall score and used the resulting scores to rank-order the sample.

Economic Activity – Total Points: 33.33

  • GDP Growth: Quadruple Weight (~13.33 Points)
  • Share of Fast-Growing Firms: Triple Weight (~10.00 Points). Note: This metric measures the number of firms in Deloitte’s Technology Fast 500 list as a percentage of total firms.
  • State Gross Public Debt as Percent of GDP: Full Weight (~3.33 Points)
  • Exports per Capita: Full Weight (~3.33 Points)
  • Startup Activity: Full Weight (~3.33 Points). Note: This metric measures the rate of newly established firms.

Economic Health – Total Points: 33.33

  • Unemployment Rate: Double Weight (~4.30 Points)
  • Underemployment Rate: Half Weight (~1.08 Points)
  • Change in Nonfarm Payrolls (2018 vs. 2017): Full Weight (~2.15 Points)
  • Change in Total Civilian Labor Force (2018 vs. 2017): Full Weight (~2.15 Points)
  • Increase in Ratio of Full-Time Jobs to Part-Time Jobs (2017 vs. 2016): Half Weight (~1.08 Points)
  • Median Annual Household Income Adjusted for Cost of Living: Full Weight (~2.15 Points)
  • Growth in State Personal Income (2018 vs 2017): Full Weight (~2.15 Points)
  • Government Surplus/Deficit per Capita: Full Weight (~2.15 Points)
  • Unfunded Public Pension Plans per Capita: Full Weight (~2.15 Points)
  • Share of Uninsured Population: Half Weight (~1.08 Points)
  • Share of Population in Poverty: Full Weight (~2.15 Points)
  • Foreclosure Rate: Full Weight (~2.15 Points)
  • Growth in Number of Businesses (2016 vs. 2015): Full Weight (~2.15 Points)
  • Fiscal Health: Full Weight (~2.15 Points). Note: This metric is based on the George Mason University Mercatus Center’s state fiscal rankings, particularly the State Fiscal Condition Index, which refers to the sum of cash, budget, long-run, service-level and trust-fund solvency indices for each state.
  • Building-Permit Activity: Full Weight (~2.15 Points). Note: This metric measures the total number of new privately owned residential-building permits issued annually per capita.
  • Average Educational Attainment of Recent Immigrants: Half Weight (~1.08 Points). Note: The educational attainment of recent immigrants aged 25 and older from a foreign country is classified as having either no high school diploma; a high school diploma or equivalent; some college experience or an associate’s degree; a bachelor’s degree; or a graduate or professional degree.
  • Average Educational Attainment of Recent Migrants from Other U.S. States: Half Weight (~1.08 Points). Note: The educational attainment of recent migrants aged 25 and older from other states within the U.S. is classified as having either no high school diploma; a high school diploma or equivalent; some college experience or an associate’s degree; a bachelor’s degree; or a graduate or professional degree.

Innovation Potential – Total Points: 33.33

  • Share of Jobs in High-Tech Industries: Full Weight (~5.56 Points)
  • Share of STEM Employment: Full Weight (~5.56 Points)
  • Independent Inventor Patents per 1,000 Working-Age Population: Full Weight (~5.56 Points)
  • Industry R&D Investment Amount per Total Civilian Employed Population: Full Weight (~5.56 Points)
  • Nonindustry R&D Investment Amount as Share of GDP: Full Weight (~5.56 Points)
  • Entrepreneurial Activity: Full Weight (~5.56 Points). Note: This metric is based on the Kauffman Index of Startup Activity, which is an equally weighted index of three normalized measures of startup activity, as defined by the Kauffman Foundation: the Rate of New Entrepreneurs (percentage of adults becoming entrepreneurs in a given month); the Opportunity Share of New Entrepreneurs (percentage of new entrepreneurs driven primarily by “opportunity” vs. “necessity”); and the Startup Density of a Region (number of new employer businesses, normalized by the business population).

For the full report, please visit:
https://wallethub.com/edu/states-with-the-best-economies/21697/