Economy

North Dakota Tops Job Creation for Fifth Year: Gallup

Driven by a robust energy industry and a small population, North Dakota was ahead of all other states in terms of employee perceptions of job creation — for the fifth year in a row. Rhode Island was at the bottom of the list, according to Gallup. The list of states shows the sharp divide between those that have recovered completely from the Great Recession and those that may not recover for years.

The list of positive perceptions of job creation by state does not exactly match state unemployment levels, but the link between the two numbers is substantial.

North Dakota has the lowest unemployment rate in the country — 2.6% in December. South Dakota, Delaware, Nebraska, Texas, Iowa, Hawaii and Minnesota were on the Gallup list of “Top States, Gallup Job Creation Index.” Each has an unemployment rate well below the national average — each with an unemployment rate of 6% or less, based on Bureau of Labor Statistics data for December.

At the other end of the spectrum, “Bottom States, Gallup Job Creation Index” includes Kentucky, Arkansas, Connecticut and New York. All of these have unemployment rates well above the national average.

However, the match between the Gallup numbers and BLS data is not perfect. New Hampshire has low unemployment but sits on the Gallup “Bottom States” list. Michigan has high unemployment but is on the “Top States” list. Perhaps it is the impression that jobs are being added in any give state more than what the current unemployment situation is that drives the Gallup list.

Probably the most important conclusion is this one:

The good news about the Gallup Job Creation Index nationally is that it has recovered from the net-negative reading Gallup recorded in 2009, and since then nearly all states have shown substantial improvement.

That indeed does go hand in hand with the overall national improvement in unemployment.

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