2014 Economic Outlook, State by State

Kiplinger

After a disappointing year of economic growth in 2013, things are looking up for next year at both the national and state level. But like most of the recovery thus far, improvement will vary from state to state and region to region. States located along the West Coast will by and large fare better than states in New England and portions of the Midwest. Areas rich in natural and energy resources, such as North Dakota, will also lead the way in 2014 while those states heavily impacted by ailing industries and cuts to federal and state government will have more muted growth.

Hover over any state in the map below to see its 2014 outlook.


Forecasted Economic Growth by State in 2014

function get_text(mapid){ var map_text = { 1:'GDP growth: 2013, 2.2%; 2014, 3.2%
Jobless rate by year end 2014: 6.0%

The state's auto and auto parts manufacturers, makers of transportation equipment and technology businesses, are its strength. The state enjoys the lowest jobless rate in the Southeast.', 2:'GDP growth: 2013, 1.0%; 2014, 1.7%
Jobless rate by year end 2014: 6.2%

Cuts in federal and state governments, which employ a significant share of Alaska's workforce, will continue to take a toll.', 3:'GDP growth: 2013, 3.5%; 2014, 3.5%
Jobless rate by year end 2014: 7.9%

Hard hit by the housing crash, home prices are on the rise as more job hunters and retirees head toward the sunny state. Job growth will continue to be mostly in low-wage sectors, however, with modest improvement in the unemployment rate.', 4:'GDP growth: 2013, 2.0%; 2014, 3.0%
Jobless rate by year end 2014: 7.1%

The improving outlook for home construction is responsible for much of the Natural State's improvement, along chemicals manufacturing, production of lumber and wood products, and the leisure and hospitality industries.', 5:'GDP growth: 2013, 3.0%; 2014, 4.5%
Jobless rate by year end 2014: 8.5%

Soaring home prices, coupled with expanding construction and financial services industries, are the state's economic drivers. Also thriving: leisure and hospitality.', 6:'GDP growth: 2013, 4.0%; 2014, 4.0%
Jobless rate by year end 2014: 6.7%

Strong growth in health care, food services and state government, mainly centered around Denver and the tourist-friendly mountain areas, is improving the state's employment situation.', 7:'GDP growth: 2013, 2.7%; 2014, 3.3%
Jobless rate by year end 2014: 7.7%

The Nutmeg State can thank more robust financial services and hospitality firms for its accelerating growth. Unemployment will decrease from 8.1%. Wages will jump about 5% after barely growing 2% this year.', 8:'GDP growth: 2013, 2.7%; 2014, 3.3%
Jobless rate by year end 2014: 7.2%

Continued government job losses and a flat manufacturing sector will mitigate growth springing from the financial and business services industries. Unemployment will ease from 7.4% now.', 10:'GDP growth: 2013, 3.3%; 2014, 3.7%
Jobless rate by year end 2014: 6.7%

More improvement in the state's hospitality and tourism industries, plus the convalescence of the Sunshine State's devastated housing market, spell jobs. Unemployment will dip from 7.1%.', 11:'GDP growth: 2013, 3.3%; 2014, 4.0%
Jobless rate by year end 2014: 8.3%

The Peach State can boast of more jobs in aircraft assembly, business and financial services, and production of construction equipment.', 12:'GDP growth: 2013, 2.5%; 2014, 2.5%
Jobless rate by year end 2014: 4.5%

Tourists are spending more, helping the state add jobs, but an aging workforce is a crimp on growth.', 13:'GDP growth: 2013, 3.6%; 2014, 3.6%
Jobless rate by year end 2014: 6.5%

Gains in business and financial services and somewhat of a rebound in manufacturing are helping growth, as are home prices, continuing to run ahead of the national average.', 14:'GDP growth: 2013, 2.5%; 2014, 3.1%
Jobless rate by year end 2014: 8.8%

The state's lone bright spot, manufacturing growth, isn't enough to help lower the 9.2% jobless rate, second-highest in the U.S. The state will have less impressive employment growth than some of its neighbors this year and next.', 15:'GDP growth: 2013, 3.0%; 2014, 4.1%
Jobless rate by year end 2014: 7.7%

A revival in manufacturing and strength in the pharmaceuticals industry is boosting growth but not by enough to do much about above-average unemployment.', 16:'GDP growth: 2013, 2.2%; 2014, 3.3%
Jobless rate by year end 2014: 4.7%

Manufacturing and service industries are on the upswing in the Hawkeye State. Agriculture, too. Unemployment won't drop much more from 4.8%.', 17:'GDP growth: 2013, 3.0%; 2014, 4.1%
Jobless rate by year end 2014: 5.7%

Higher cattle prices and rising farm productivity will help bring in more revenue. The state's below-average 5.9% unemployment will tick lower next year.', 18:'GDP growth: 2013, 3.0%; 2014, 4.0%
Jobless rate by year end 2014: 8.0%

Stagnating coal production will be more than offset by gains in the business services industry.', 19:'GDP growth: 2013, 3.0%; 2014, 4.0%
Jobless rate by year end 2014: 6.8%

Rising profits and productivity in natural gas, petroleum refining and petrochemical industries will keep Louisiana growing faster than average.', 20:'GDP growth: 2013, 1.5%; 2014, 2.2%
Jobless rate by year end 2014: 6.8%

Gains in construction and health services will help the state ramp up its economic growth. The unemployment rate will drop from 7.2%, while wages are going to increase by about 4%. In 2013, they will gain less than 3%.', 21:'GDP growth: 2013, 2.8%; 2014, 3.8%
Jobless rate by year end 2014: 6.9%

Health care and biotech will help Maryland's economy accelerate.', 22:'GDP growth: 2013, 2.5%; 2014, 3.3%
Jobless rate by year end 2014: 6.9%

Gains in construction and health services will help the state ramp up its economic growth. Wages are going to increase by about 4% in 2014.', 23:'GDP growth: 2013, 2.2%; 2014, 3.1%
Jobless rate by year end 2014: 8.2%

The boon from a pickup in vehicle sales, particularly light trucks, will continue to buoy growth and lower unemployment. Unemployment will decline.', 24:'GDP growth: 2013, 2.8%; 2014, 4.0%
Jobless rate by year end 2014: 5%

Improvement in educational and health services will help Minnesota finally hit its stride.', 25:'GDP growth: 2013, 1.4%; 2014, 2.5%
Jobless rate by year end 2014: 8.1%

Gains in the state's durable goods manufacturing businesses and health care companies will help whittle unemployment.', 26:'GDP growth: 2013, 2.0%; 2014, 3.0%
Jobless rate by year end 2014: 6.9%

Manufacturing will give the Show-Me State a lift. Also, hospitality and leisure, plus trade, transportation and utilities, will show job growth.', 27:'GDP growth: 2013, 4.0%; 2014, 3.7%
Jobless rate by year end 2014: 5.0%

Strength in the natural resources, mining and tourism industries will more than offset the drag from job losses in state government. Tighter regulation of oil and coal will take a toll.', 28:'GDP growth: 2013, 2.5%; 2014, 3.5%
Jobless rate by year end 2014: 4.1%

Strength in its service industries, particularly hospitality and health care, will keep the Cornhusker State steady. Unemployment won't change.', 29:'GDP growth: 2013, 1.5%; 2014, 2.0%
Jobless rate by year end 2014: 9.0%

The Silver State will continue to struggle with the aftereffects of the recession and housing collapse. Although tourist traffic is up, revenue growth for the gaming industry is sluggish.', 30:'GDP growth: 2013, 1.5%; 2014, 2.5%
Jobless rate by year end 2014: 4.9%

Leisure and hospitality industries, plus business services, will help make up for a flat performance by the state's large manufacturing sector. The state's already-low jobless rate of 5% will tick down a notch, while wages will climb along with the national average.', 31:'GDP growth: 2013, 2.5%; 2014, 3.2%
Jobless rate by year end 2014: 8.3%

Improved performances from health care and manufacturing are a positive, but this year's boost to home building and hiring, tied to rebuilding following Hurricane Sandy, will wane. Unemployment, now 8.6%, will drop as economic activity climbs.', 32:'GDP growth: 2013, 3.0%; 2014, 3.0%
Jobless rate by year end 2014: 6.6%

Most job gains will occur in the low-wage industries of leisure and hospitality, plus some in natural resources, but a recent reduction in the state's corporate income tax rate may help attract additional businesses.', 33:'GDP growth: 2013, 3.5%; 2014, 4.2%
Jobless rate by year end 2014: 7.2%

The financial sector and professional services industry will turn in better performances in 2014.', 34:'GDP growth: 2013, 3.4%; 2014, 3.9%
Jobless rate by year end 2014: 8.4%

Gains in the leisure and hospitality sectors, as well as by business and professional services and software companies, will spur growth. Look for hiring to pick up enough to lop half a percentage point off the state's high 8.9% jobless rate.', 35:'GDP growth: 2013, 6.0%; 2014, 7.0%
Jobless rate by year end 2014: 2.8%

The state's shale gas and oil industries, plus a strengthening agricultural sector, deserve credit for the Peace Garden State's front-runner growth.', 36:'GDP growth: 2013, 2.6%; 2014, 3.0%
Jobless rate by year end 2014: 6.9%

The strengthening auto industry and solid growth in health care will help push Ohio unemployment down and raise wages by about 3.5% in 2014. That'll top the average raise in the U.S.', 37:'GDP growth: 2013, 3.5%; 2014, 4.5%
Jobless rate by year end 2014: 4.9%

The Sooner State will benefit mostly from gains in the energy sector. Construction, leisure and hospitality will also help. Joblessness is likely to slip from 5.3% now.', 38:'GDP growth: 2013, 3.6%; 2014, 3.8%
Jobless rate by year end 2014: 7.6%

Expansions of Intel and other technology firms, including California-based Oracle, are helping job growth.', 39:'GDP growth: 2013, 3.5%; 2014, 4.5%
Jobless rate by year end 2014: 7.1%

While the state's shale gas resources fuel growth in mining and natural resources, its aging population will feed gains in the health care sector. Also helping: durables manufacturing. The jobless rate will drop from 7.5% this year.', 40:'GDP growth: 2013, 1.5%; 2014, 2.5%
Jobless rate by year end 2014: 8.3%

Wages will expand significantly next year, climbing 5.5% or so, compared with around 2.6% this year. The state's high unemployment rate of 9.1% will drop. Helping to fuel growth: Construction and financial services.', 41:'GDP growth: 2013, 3.2%; 2014, 4.0%
Jobless rate by year end 2014: 7.5%

The Palmetto State will see growth driven largely by continued expansion in construction, manufacturing and financial services.', 42:'GDP growth: 2013, 3.0%; 2014, 4.0%
Jobless rate by year end 2014: 3.6%

The hospitality and leisure industry and financial services are helping the Mount Rushmore State, as are the higher prices farmers and ranchers are getting for their output.', 43:'GDP growth: 2013, 2.5%; 2014, 3.7%
Jobless rate by year end 2014: 7.9%

A more moderate pickup in the pace of manufacturing growth for the Volunteer State this year and next. But help from mining, natural resources and professional and business services will bolster it. Joblessness will slip from 8.5% now.', 44:'GDP growth: 2013, 3.5%; 2014, 5.0%
Jobless rate by year end 2014: 6.2%

The Lone Star State's economy will remain the brightest in the region, with a booming housing market and a fast-growing energy sector. Unemployment will end 2014 down from 6.5% now.', 45:'GDP growth: 2013, 4.5%; 2014, 4.5%
Jobless rate by year end 2014: 4.5%

Robust home building, highway construction and the development of a new data facility for the National Security Agency will keep growth solid.', 46:'GDP growth: 2013, 2.0%; 2014, 3.4%
Jobless rate by year end 2014: 4.5%

Health care services and education will provide the oomph for the Green Mountain State. The superlow jobless rate of 4.6% will fall a bit more. Wages will be up about 1.5% in 2014.', 47:'GDP growth: 2013, 3.4%; 2014, 4.0%
Jobless rate by year end 2014: 5.3%

The Old Dominion will continue to enjoy below-average joblessness and an above-average pace of growth in 2014, thanks to strength in the health services, education, finance, leisure and hospitality industries. Unemployment will slide from 5.7% now.', 48:'GDP growth: 2013, 3.5%; 2014, 3.7%
Jobless rate by year end 2014: 6.4%

Technology and retail industry growth will continue to show growth and boost demand for housing. Exports, such as lumber, holding steady.', 49:'GDP growth: 2013, 2.0%; 2014, 3.0%
Jobless rate by year end 2014: 6.0%

The Mountain State will see increasing strength in construction and health care. Unemployment is inching down a few tenths of a percentage point.', 50:'GDP growth: 2013, 1.7%; 2014, 3.4%
Jobless rate by year end 2014: 6.4%

A recovering housing sector plus job growth in leisure, mining and other natural resources industries will accelerate in 2014.', 51:'GDP growth: 2013, 3.3%; 2014, 3.5%
Jobless rate by year end 2014: 4.5%

The coal, oil and gas boom spells growth for the Cowboy State, though increased regulations and competition will keep it in check. The state's already-low 4.6% unemployment rate isn't likely to get much better.', }; return map_text[mapid]; } .myqtip { padding-top: .75em; background-color : #ffffff; border-color: #ccc; color: #333; -webkit-box-shadow: 2px 2px 9px rgba(50, 50, 50, 0.65); -moz-box-shadow: 2px 2px 9px rgba(50, 50, 50, 0.65); box-shadow: 2px 2px 9px rgba(50, 50, 50, 0.65); -webkit-border-radius: 5px; -moz-border-radius: 5px; border-radius: 5px; } .myqtip strong { color: #000; }
GPD
View Comments (0)