Southern States With Failing Economies vs. Southern States With Thriving Economies

People are constantly moving for various reasons: starting a new job, searching for a lower cost of living, or to escape frigid temperatures in the North. Southern states have often benefited from these trends, with explosions in population in states like Florida, Texas and Nevada

But not every state in the South has fared well, even amid a population boom. Some are failing or struggling. We’ll break down both categories, focusing specifically on southern states.

These Southern states have economies that are failing in some ways. Several trendlines are still positive, but these states aren’t doing as well as some of their counterparts.

1. South Carolina

• March 2022 unemployment rate: 3.4%
• Year-over-year change in unemployment Feb. 2021: 2.7%
• Q4 2021 GDP per capita: $54,280
• GDP growth Q3 2021-Q4 2021: 6.8%
• Average weekly wages Sept. 2020: $988
• Percent change in average weekly wages Sept. 2020-Sept. 2021: 6.9%
• Percent of population below the poverty line in 2020: 14.2%

South Carolina is experiencing numerous economic difficulties, including a tight labor market and a low labor participation rate. A South Carolina Public Radio report says the labor force participation rate in the state is around 57.5% compared to 62% nationally. While its unemployment rate is low, that low rate has increased wages, leading to upward pressure on prices.

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• March 2022 unemployment rate: 3.1%
• Year-over-year change in unemployment Feb. 2021: 2.8%
• Q4 2021 GDP per capita: $49,732
• GDP growth Q3 2021-Q4 2021: 5.1%
• Average weekly wages Sept. 2020: $963
• Percent change in average weekly wages Sept. 2020-Sept. 2021: 7.8%
• Percent of population below the poverty line in 2020: 14.1%

Arkansas has grappled with inflation just as the rest of the country has. That has left people in the state feeling the pressure of soaring prices. Although the state’s revenue was up $26.2 million in August, the state’s low weekly wage means many Arkansans are struggling to get by.

• March 2022 unemployment rate: 4.2%
• Year-over-year change in unemployment Feb. 2021: 2.5%
• Q4 2021 GDP per capita: $57,769
• GDP growth Q3 2021-Q4 2021: 5.7%
• Average weekly wages Sept. 2020: $1,021
• Percent change in average weekly wages Sept. 2020-Sept. 2021: 5.4%
• Percent of population below the poverty line in 2020: 16.7%

Economic prosperity and hardship often coincide, even within state borders. For Mississippi, that couldn’t be more true. For instance, the state has seen $1.3 billion of corporate investments in 2022, helping the state add 4,149 new jobs in 2021.

But the state’s capital, Jackson, is amid a water crisis. Also, consider that more than one-fifth of the state has no access to broadband internet. Mississippi also has a nearly 17% poverty rate, the highest in the nation.

• March 2022 unemployment rate: 4%
• Year-over-year change in unemployment Feb. 2021: 2.5%
• Q4 2021 GDP per capita: $54,216
• GDP growth Q3 2021-Q4 2021: 5.9%
• Average weekly wages Sept. 2020: $989
• Percent change in average weekly wages Sept. 2020-Sept. 2021: 5.8%
• Percent of population below the poverty line in 2020: 13.8%

Kentucky has had numerous natural disasters lately, including flooding and tornadoes. Of course, all of this is against the backdrop of the economic peril caused by the pandemic. Eroding job quality and stagnant wages are among the difficulties the state is experiencing. Kentucky is also one of the states with average weekly wages under $1,000.

• March 2022 unemployment rate: 4.2%
• Year-over-year change in unemployment Feb. 2021: 2.5%
• Q4 2021 GDP per capita: $57,769
• GDP growth Q3 2021-Q4 2021: 5.7%
• Average weekly wages Sept. 2020: $1,021
• Percent change in average weekly wages Sept. 2020-Sept. 2021: 5.4%
• Percent of population below the poverty line in 2020: 16.7%

Louisiana is yet another state struggling to grow its economy in the current economic climate. It is “likely that the state is currently in an economic downturn,” according to Gary Wagner, an economist at the University of Louisiana at Lafayette. While GDP growth is positive, the projection was revised downward. The state’s poverty rate is also on par with that of Mississippi.

While some southern states are having a tough time, others are doing well despite inflation and other issues affecting the country. Take a look.

1. Florida

• March 2022 unemployment rate: 3.2%
• Year-over-year change in unemployment Feb. 2021: 5.7%
• Q4 2021 GDP per capita: $59,046
• GDP growth Q3 2021-Q4 2021: 7.5%
• Average weekly wages Sept. 2020: $1,120
• Percent change in average weekly wages Sept. 2020-Sept. 2021: 8.7%
• Percent of population below the poverty line in 2020: 12.4%

Although tourism makes up a large portion of Florida’s economy, it has other sectors. These include agriculture, mining and real estate. The state’s jobless rate is the lowest among big states, and its GDP and wages are growing rapidly. In the Ft. Lauderdale area, the unemployment rate was just 2.8% in August 2022.

• March 2022 unemployment rate: 3.2%
• Year-over-year change in unemployment Feb. 2021: 4.1%
• Q4 2021 GDP per capita: $62,944
• GDP growth Q3 2021-Q4 2021: 9.9%
• Average weekly wages Sept. 2020: $1,111
• Percent change in average weekly wages Sept. 2020-Sept. 2021: 8.7%
• Percent of population below the poverty line in 2020: 7%

Tennessee lies just to the south of Kentucky, a state with significant economic issues. Yet, Tennessee finds itself among the states with thriving economies. Developments such as electric vehicle manufacturing are leading to a new age of opportunity in the state. As a result, the state’s wage growth is high, and it has one of the lowest poverty rates in the country.

• March 2022 unemployment rate: 4.4%
• Year-over-year change in unemployment Feb. 2021: 5.9%
• Q4 2021 GDP per capita: $71,274
• GDP growth Q3 2021-Q4 2021: 10.1%
• Average weekly wages Sept. 2020: $1,2427
• Percent change in average weekly wages Sept. 2020-Sept. 2021: 6.7%
• Percent of population below the poverty line in 2020: 12.5%

Texas has the second-largest economy in the U.S. after California. Although the state is seeing some slowdowns in retail and manufacturing, it has strong GDP growth and a high weekly wage. Given how large the state’s economy is and the current economic uncertainty, Texas will be a state to watch in the months ahead.

• March 2022 unemployment rate: 5%
• Year-over-year change in unemployment Feb. 2021: 9.1%
• Q4 2021 GDP per capita: $64,983
• GDP growth Q3 2021-Q4 2021: 7.9%
• Average weekly wages Sept. 2020: $1,135
• Percent change in average weekly wages Sept. 2020-Sept. 2021: 8.3%
• Percent of population below the poverty line in 2020: 11.7%

Nevada is not usually considered part of the South, but its geographic location makes it worth a mention. The state’s economy relies on tourism, with cities like Las Vegas and Reno attracting millions of people every year. And with people beginning to travel again, the state is doing well; GDP and wage growth are high. That said, unemployment is still higher than it is in some states.

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