Looking for a job? A vibrant economy in which to launch your new business? A new market for your firm's next expansion? The Kiplinger Letter's annual state economic outlooks help job-seekers, entrepreneurs and business executives to get ahead of shifts in job creation and GDP in different markets across the country.
The following 15 states are likely to see the fastest employment gains next year, from 2.1% to 4.0%, all topping the 1.8% national average. Not all will see the highest numbers of new jobs, an honor that almost always goes to the most populous states, even if their rate of growth is slower. That's the case this year with
Meanwhile, look for unemployment rates to continue to decline in almost all the states. The U.S. unemployment rate, as of September, was 5.1%.
1. Nevada
Population: 2,839,099
2015 job growth: 3.4%
2016 job growth: 4.0%
New jobs in 2015: 41,000
New jobs in 2016: 50,800
Unemployment rate by year-end 2015: 6.5%
Unemployment rate by year-end 2016: 6.1%
The stronger national economy will bring in more gamblers and conventioneers. Moreover, carmaker Tesla's planned
2. Arizona
Population: 6,731,484
2015 job growth: 2.4%
2016 job growth: 3.6%
New jobs in 2015: 60,500
New jobs in 2016: 95,200
Unemployment rate by year-end 2015: 5.6%
Unemployment rate by year-end 2016: 5.4%
3. Florida
Population: 19,893,297
2015 job growth: 3.3%
2016 job growth: 2.9%
New jobs in 2015: 254,300
New jobs in 2016: 236,700
Unemployment rate by year-end 2015: 5.2%
Unemployment rate by year-end 2016: 4.7%
Construction, tourism, health care, transportation and technology will buoy the economy. Employment growth in
4. Georgia
Population: 10,097,343
2015 job growth: 2.6%
2016 job growth: 2.6%
New jobs in 2015: 108,100
New jobs in 2016: 111,200
Unemployment rate by year-end 2015: 5.9%
Unemployment rate by year-end 2016: 5.7%
Strong growth will continue next year in
5. Tennessee
Population: 6,549,352
2015 job growth: 1.9%
2016 job growth: 2.4%
New jobs in 2015: 52,800
New jobs in 2016: 69,400
Unemployment rate by year-end 2015: 5.5%
Unemployment rate by year-end 2016: 5.4%
Although national growth in auto production is expected to ease in 2016, it will continue to grow in
6. Washington
Population: 7,061,530
2015 job growth: 3.2%
2016 job growth: 2.4%
New jobs in 2015: 98,400
New jobs in 2016: 75,000
Unemployment rate by year-end 2015: 5.1%
Unemployment rate by year-end 2016: 5.0%
The slowdown in the economies of emerging-market nations will slow aircraft orders at
7. South Carolina
Population: 4,832,482
2015 job growth: 2.7%
2016 job growth: 2.4%
New jobs in 2015: 51,800
New jobs in 2016: 46,900
Unemployment rate by year-end 2015: 6.2%
Unemployment rate by year-end 2016: 5.7%
Improvements to the
8. Oregon
Population: 3,970,239
2015 job growth: 3.1%
2016 job growth: 2.3%
New jobs in 2015: 52,600
New jobs in 2016: 41,500
Unemployment rate by year-end 2015: 5.0%
Unemployment rate by year-end 2016: 5.1%
Thriving development in
9. California
Population: 38,802,500
2015 job growth: 2.8%
2016 job growth: 2.3%
New jobs in 2015: 439,600
New jobs in 2016: 374,100
Unemployment rate by year-end 2015: 5.9%
Unemployment rate by year-end 2016: 5.7%
10. Utah
Population: 2,942,902
2015 job growth: 3.8%
2016 job growth: 2.3%
New jobs in 2015: 50,900
New jobs in 2016: 31,400
Unemployment rate by year-end 2015: 3.0%
Unemployment rate by year-end 2016: 2.6%
Tight labor markets will get even tighter as employment rises, spurred by the Beehive State's vibrant tech and financial sectors. Demand for multifamily housing and office space will spur construction. Semiconductor output, however, is hurt by declining demand from
11. North Carolina
Population: 9,943,964
2015 job growth: 2.5%
2016 job growth: 2.2%
New jobs in 2015: 105,200
New jobs in 2016: 93,000
Unemployment rate by year-end 2015: 5.2%
Unemployment rate by year-end 2016: 4.7%
Construction is booming, and professional, business, and health services, plus leisure/hospitality, will see strong job gains. Like elsewhere, manufacturing will continue to face headwinds created by the strong greenback. All in all, a positive outlook for
12. Indiana
Population: 6,596,855
2015 job growth: 2.3%
2016 job growth: 2.1%
New jobs in 2015: 68,200
New jobs in 2016: 64,100
Unemployment rate by year-end 2015: 4.7%
Unemployment rate by year-end 2016: 4.6%
Population growth is easing, lessening strong gains in leisure/hospitality jobs. And the strong dollar will dent pharmaceuticals and medical equipment production. But prospects remain upbeat, overall, with a continued drop in unemployment.
13. Idaho
Population: 1,634,464
2015 job growth: 3.3%
2016 job growth: 2.1%
New jobs in 2015: 21,400
New jobs in 2016: 13,900
Unemployment rate by year-end 2015: 3.7%
Unemployment rate by year-end 2016: 3.7%
Construction is going full steam, and employment in the tech sector is growing fast. One caveat: Semiconductor and electronics output has been hurt by the decline in demand from
14. Delaware
Population: 935,614
2015 job growth: 1.6%
2016 job growth: 2.1%
New jobs in 2015: 7,000
New jobs in 2016: 9,500
Unemployment rate by year-end 2015: 4.4%
Unemployment rate by year-end 2016: 4.4%
A continued pickup in the credit card industry will improve growth in
15. New Hampshire
Population: 1,326,813
2015 job growth: 1.3%
2016 job growth: 2.1%
New jobs in 2015: 8,500
New jobs in 2016: 13,800
Unemployment rate by year-end 2015: 3.6%
Unemployment rate by year-end 2016: 3.5%
Spillover from growth in the greater
2015 Rankings - States With the Fastest Job Growth
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David Payne is Staff Economist at The Kiplinger Letter.