Ohio and Kentucky have been ranked among the ten worst-performing state economies in the United States, according to a newly released study by personal finance website WalletHub. The report analyzed economic data across all 50 states and the District of Columbia, placing Ohio at 36th and Kentucky at 41st in overall economic strength.
The study measured each state’s economy across three key dimensions: economic activity, economic health, and innovation potential. These dimensions were evaluated using 28 metrics including gross domestic product (GDP) growth, unemployment rates, job creation, startup activity, and the share of high-tech jobs. States were then scored on a 100-point scale based on their performance across all indicators.
Ohio ranked 30th in both economic activity and innovation potential but dropped to 46th in economic health, dragging down its overall score to 40.59. Kentucky also ranked 30th in economic health and placed 27th in economic activity, but it recorded the lowest possible ranking in innovation potential at 51st overall, including the District of Columbia. Kentucky’s overall score was 36.72.
Despite low rankings in several key areas, Kentucky tied for first in exports per capita, indicating strong performance in international trade. Ohio did not place among the top or bottom in individual categories such as GDP growth or startup activity but showed consistent underperformance in health-related and workforce indicators that impact long-term economic resilience.
Indiana outpaces regional neighbors in economic growth
Massachusetts was ranked as having the strongest state economy, followed by Utah, Washington, California, and New Hampshire. These states consistently outperformed in categories such as high-tech job concentration, GDP growth, and innovation output. At the bottom of the list were Louisiana, Alaska, and West Virginia, with Kentucky and Mississippi rounding out the bottom five.
Neighboring Indiana ranked 22nd overall, boosted by one of the highest year-over-year GDP growth rates in the nation and a high export volume relative to population size. The performance gap between Indiana and its neighbors underscores the economic disparities within the Midwest region.
The WalletHub report used data compiled from the U.S. Census Bureau, Bureau of Labor Statistics, United States Patent and Trademark Office, and other federal agencies. Metrics included the change in nonfarm payrolls, business startup activity, median household income growth, and the percentage of jobs in STEM fields.
Ohio struggles with labor force participation post-pandemic
Ohio’s economic challenges have been reflected in its slow recovery in job markets and a decline in workforce participation rates in several counties. Kentucky faces similar pressures, particularly in areas reliant on legacy industries that have struggled to attract new investment or diversify employment opportunities.
The study’s findings provide a comparative snapshot of how state economies are performing in the post-pandemic period, reflecting shifts in labor markets, industrial growth, and innovation capacity. While the national economy continues to expand, the performance among states remains uneven, with high-performing regions benefiting from strong technology sectors and diversified economies.
The economic ranking may influence how policymakers and business leaders approach development strategies, particularly in states that fell in the bottom tier. The data-driven assessment highlights regional economic strengths and weaknesses based solely on measurable, publicly available indicators. – By Content Syndication Services.