The Most Stimulated States

When President Barack Obama signed the American Recovery and Reinvestment Act on Tuesday, he let loose a $787 billion tidal wave of money aimed at getting the stalled economy moving again. But not everyone, everywhere will share in it equally.

In terms of raw jobs and raw cash, it's no surprise that California--the biggest state, staggering under one of the nation's worst unemployment rates--is the biggest beneficiary. What is surprising: On a per capita basis, it is smaller states--where unemployment is not as large a problem--that will get the most help, according to White House data released before the signing ceremony.

Of the 10 smallest states (including the District of Columbia), six are estimated to receive the largest per capita job creation. So while California, Texas, New York and Florida, the four biggest states, get the most total jobs, it is some of the smallest states--Wyoming, Washington, D.C., Vermont, North and South Dakota, and Delaware that are getting the biggest boost per citizen.

Several of the biggest recipients on a per-person basis also have the lowest unemployment rates in the nation. Depending on one's perspective, that's either aid for those who don't need it, or it's rightfully not withholding funds from states that have done a good job keeping their economies in order.

The four states in the country with the lowest unemployment rates all make the list--Wyoming, North Dakota, South Dakota and Nebraska. All four states had unemployment of 4% or lower in December, while the national average was 7.2%. Since December, the national average has jumped further to 7.6% and is expected to jump again in February.

The White House estimates are based off assumptions from "The Job Impact of the American Recovery and Reinvestment Plan," written by Christina Romer and Jared Bernstein.

Romer was a member of the National Bureau of Economic Research business cycle dating committee, the arbiter of recessions in the U.S., until leaving to chair President Obama's Council of Economic Advisers.

The estimates from the White House combined Romer and Bernstein's analysis of how many jobs were likely to be created in different sectors with data on state economies, such as the industrial composition of each state.

The $787 billion stimulus was controversial legislation, obviously, with politicians and economists debating what would be the most effective use of stimulus and whether the administration's job creation claims were realistic. The Congressional Budget Office has questioned whether or not the government is even capable of spending such a large amount of money in two years. Ultimately, nobody knows whether or not the legislation can achieve its goal of creating 3.5 million jobs in two years. Nothing of this scope has ever been attempted before.

What is agreed is that states are hobbled by unemployment and collapsing tax revenues. In December, in California, the Bureau of Labor Statistics estimated that 1.7 million people were unemployed--a rate of 9.3%. But even that is lower than the 9.5% unemployment rate in South Carolina, 10% in Rhode Island and 10.6% in Michigan.

The Democrats (and three Republicans) who supported the legislation now have their futures largely tied to the goals they outlined: 109,000 jobs for Michigan, 396,000 jobs for California, 3.5 million jobs nationwide. At a price tag of $787 billion, they better hope they are right.

In Pictures: The 10 Most Stimulated States

District of Columbia

© AP Photo

Stimulus jobs: One job for every 49 people

Total jobs: 12,000

December unemployment: 29,000 (8.8%)

It's perhaps no surprise that $787 billion in federal spending would create more jobs on a per-capita basis in the seat of the federal government, Washington, D.C., than in any other state.

Not that D.C. doesn't need some help--at 8.8% in December, the unemployment rate in the District is higher than all but six states.

Wyoming

Stimulus jobs: One job for every 67 people

Total jobs: 8,000

December unemployment: 10,000 (3.4%)

America's smallest state has the lowest unemployment rate of any state in the country, but it still stands to benefit big-time from the stimulus. The White House estimates all that energy and infrastructure spending could create 8,000 jobs in Wyoming.

Nevada

© Ethan Miller/Getty Images

Stimulus jobs: One job for every 76 people

Total jobs: 34,000

December unemployment: 130,500 (9.1%)

The Bureau of Labor Statistics estimates Nevada lost 32,000 jobs in 2008 as unemployment soared to 9.1% (blame a plummeting real estate market and slowing tourism traffic).

The White House projects the stimulus will create more jobs than were lost in that downturn.

Nebraska

Stimulus jobs: One job for every 78 people

Total jobs: 23,000

December unemployment: 40,000 (4%)

As everything from banks to oil went crashing down, farm economies have weathered the storm relatively well. Unemployment in Nebraska is still a mild 4%. Sen. Ben Nelson, D-Neb., who emerged as one of the key negotiators in passing the bill, said Nebraska schools would receive $236 million to help avert teacher layoffs, $52 million to rebuild infrastructure and $310 million to preserve Medicaid assistance.

Vermont

© AP Photo/Toby Talbot

Stimulus jobs: One job for every 78 people

Total jobs: 8,000

December unemployment: 22,700 (6.4%)

The legislation is sure to create some jobs here. The Associated Press reported the Vermont Transportation Agency began hiring engineers for infrastructure projects the moment the legislation was enacted. Sen. Patrick Leahy, D-Vt., said in a statement that Vermont is expected to receive more than $600 million in direct federal funding from the stimulus.

Click here for the full list of the 10 Most Stimulated States