A recession is a period of economic decline, and it can be particularly hard on certain areas of the country. Some states are better equipped to handle a recession, thanks to a diverse economy, strong job market, and a well-funded safety net.
Other states, however, are more vulnerable to economic downturns and can be particularly challenging places to live during a recession. Here are some of the worst states to live in during a recession in 2023.
Nevada was hit particularly hard by the Great Recession, and it continues to be a challenging place to live during economic downturns. The state’s economy is heavily dependent on tourism and hospitality, two industries that are often the first to be affected during a recession. Additionally, Nevada has one of the highest unemployment rates in the country, making it even more difficult for residents to find work during a downturn.
Florida’s economy is also heavily dependent on tourism, which makes it vulnerable to recessions. Additionally, the state has a large number of retirees, who may be on fixed incomes and particularly vulnerable to economic downturns. While Florida has made efforts to diversify its economy in recent years, it still faces challenges during recessions.
Louisiana’s economy is heavily dependent on the oil and gas industry, which can be particularly volatile during economic downturns. Additionally, the state has a high poverty rate and a lower-than-average median income, which can make it particularly challenging for residents during a recession.
Michigan’s economy is heavily dependent on the automotive industry, which has faced challenges in recent years due to increased competition and technological changes. Additionally, Michigan has a higher-than-average unemployment rate and a large number of residents living in poverty.
Alaska’s economy is heavily dependent on the oil and gas industry, which makes it particularly vulnerable to economic downturns. Additionally, the state has a high cost of living, which can make it even more challenging for residents during a recession.
While no state is immune to the effects of a recession, some states are more vulnerable than others. States that are heavily dependent on tourism, hospitality, or volatile industries like oil and gas may be particularly challenging places to live during a recession.
Additionally, states with high unemployment rates, high poverty rates, or a high cost of living may also be particularly difficult for residents during economic downturns. Ultimately, it’s important for residents to be aware of the economic challenges facing their state and to be prepared for the potential impacts of a recession.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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