(The Center Square) – A new study paints a bleak picture of the economic health of Illinois.
The personal finance website WalletHub has released its findings of the best and worst state economies.
Researcher Chip Lugo said Wallethub used three economic categories including economic activity, economic health and innovation potential.
“Then we applied 28 relevant metrics, and those run everything from GDP growth, start-up activity and share of jobs in high-tech industries,” said Lugo.
Overall, the study ranked Illinois 40th for its state economy but dead last in the economic health category.
“Fifty-one out of 50 states and Washington, D.C.,” said Lugo. “A number of things Illinois did not fare well in that particular dimension.”
Illinois ranked 48th in change in nonfarm payrolls, 41st in economic activity, and scored poorly for high foreclosure rates and the state’s unemployment rate.
Illinois’ unemployment rate is 4.8%, one of the highest in the country, and is in the top-10 for states with the biggest increases in unemployment claims.
The study found that Massachusetts has the best state economy while Iowa has the worst.
The “State of Illinois Economic Forecast” from Moody Analytics released in February showed some dark clouds on the horizon.
“Illinois will underperform the region and the U.S. in 2025, with gross state product, employment, and income increasing less than elsewhere,” the report’s summary said.
“A strong state economy doesn’t guarantee success for the state’s residents, but it certainly makes financial success more attainable,” said Lugo. “The best state economies encourage growth by being friendly to new businesses and investing in new technology that will help the state deal with future challenges.”
