Utah’s economy remains strong, ranked 2nd in the nation – Cache Valley Daily

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LOGAN – Utah’s economy continues to perform well despite some levels of uncertainty and difficulty caused by the COVID-19 pandemic. Personal finance site WalletHub recently compared the 50 states and the District of Columbia to provide an update on state economies, and Utah ranked 2nd overall. Washington is ranked first.

Other western states received high marks, including California (3rd), Colorado (6th), Oregon (9th), and Idaho (13th). Other Utah neighbors finished lower: Arizona is ranked 17th, Montana 18th, Nevada 26th and Wyoming finished near the bottom at 45th.

The site scored all states on 28 key indicators of economic performance and strength, ranging from GDP growth to start-up activity to share of jobs in high-tech industries. Utah ranked 1st overall for Economic Health, 2nd overall for Economic Activity, and 10th overall for Innovation Potential. Utah’s low unemployment rate (tied for 1st), start-up activity (3rd), and median household income (2nd) are other factors that helped Utah earn such a high ranking. solid. Idaho finished 2nd in overall economic health.

In rating the states with the best economies, Gregory S. Burge, president and professor of economics at the University of Oklahoma, says there are a number of common factors that contribute to the strength of the state economy. ‘a state.

“I would like to give a nod to the power of innovation and American entrepreneurship – so maybe start with something like patents per capita,” says Burge. “Secondly, I’m a big proponent of the idea that a strong economy should work for everyone – including middle-income and low-income workers – so I would say you want a low poverty rate (adjusted for the cost of living). After that, maybe something general like the ratio of per capita income to a general cost of living index.

“All the best patterns I’ve seen suggest that people/workers like to move to places where this ratio is high and tend to move away from places where this ratio is low. We could complete with two big social indicators indicating that families and children are doing well – perhaps the lowest incarceration rates for youth and young adults as well as something like high school graduation rates?”

Lawrence J. White, Robert Kavesh Professor of Economics and General Editor, Review of Industrial Organization at New York University’s Stern School of Business, adds that per capita income, unemployment rate, and recent growth rate are common factors in the best performing states.

Another economic expert to whom the site refers, Robert Wyllie, assistant professor of political science, director of the political economy program at Ashland University’s College of Arts and Sciences, is concerned about the direction the economy is taking. American economy in general.

“High inflation,” says Wyllie, “fueled in part by high energy prices, combined with slow growth points, drew many comparisons to the 1970s.”

Burge agrees.

“Hard goods like cars/refrigerators/TVs, the kind of stuff that’s been bought aggressively over the past two years — those kinds of sales are going to go down,” he says. “But service-related sectors, and travel in particular, are heating up. Ultimately, households have limited resources – so with $5 a gallon of gas and higher than ever costs for housing and food, there simply won’t be as many discretionary spending dollars left in the typical US budget on the rest of 2022 as he looked back. On the net, my hunch is that this means we have a good chance of heading into (or are already in) a small recession.

The site considered the following information to determine its ranking:

Economic activity

  • Evolution of GDP (2021 vs 2020)
  • Share of fast-growing companies
  • Government gross public debt as a percentage of GDP
  • Exports per capita
  • Startup activity

Economic health

  • Unemployment rate
  • Underemployment rate
  • Evolution of the non-agricultural wage bill (2021 compared to 2020)
  • Evolution of the total civilian labor force (2021 compared to 2020)
  • Increase in the ratio of full-time jobs to part-time jobs (2020 compared to 2019)
  • Median annual household income adjusted for cost of living
  • Personal State Income Growth (2021 vs. 2020)
  • Public surplus/deficit per capita
  • Unfunded public pension schemes per capita
  • Share of uninsured population
  • Share of population in poverty
  • Foreclosure rate
  • Growth in the number of companies (2020 compared to 2019)
  • Financial health
  • Building permit activity
  • Average educational attainment of recent immigrants
  • Average educational attainment of recent migrants from other U.S. states

Innovation potential

  • Share of jobs in high-tech industries
  • Share of jobs STEM employment
  • Independent inventor patents per 1,000 people of working age
  • Amount of industry research and development investment per total employed civilian population
  • Amount of investment in non-industrial research and development as a percentage of GDP
  • Entrepreneurial activity

The data used to create this ranking was collected from the US Census Bureau, Bureau of Labor Statistics, Bureau of Economic Analysis, Deloitte, United Health Foundation, American Legislative Exchange Council, Mercatus Center at George Mason University, Council for Community and Economic Research , ATTOM Data Solutions, United States Patent and Trademark Office, usgovernmentspending.com, National Science Foundation and Ewing Marion Kauffman Foundation.

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