The U.S. unemployment rate declined to 3.5% in September, a pre-pandemic level initially reached in July before notching up to 3.7% in August. Compared to September 2021, the jobless rate is 1.2 percentage points lower, with some states faring better than others, based on the recently-released Bureau of Labor Statistics unemployment report.
The September unemployment rate was lower in 11 states, higher in nine, and remained stable in 30 states compared to the previous month. Twenty-five states now have unemployment rates below the national rate, led by Minnesota at 2%.
With inflation at a 40-year high, the economy is increasingly becoming a major issue in the upcoming midterm elections, despite a seemingly strong labor market. Out of 10 states playing a significant role in the midterms, five have unemployment rates above the national average: Arizona at 3.7%, Nevada at 4.4%, North Carolina at 3.6%, Pennsylvania at 4.1%, and Ohio 4%. (These are the states where job openings are disappearing right now.)
While the labor market, including the unemployment rate, is an important aspect for those looking for a job, other factors play a role. To determine the best states to find a job, 24/7 Wall St. reviewed marketing agency TOP’s report Best States to Find a Job 2022. Using 51 metrics, TOP compared the 50 states across five dimensions: state economy, compensation and benefits, job market, quality of life, and business friendliness.
Indeed, the top five states also rank in the top 10 in TOP’s labor market dimension. No. 1 ranked Utah also places in the top 10 in business friendliness and state economy. The No. 2 ranked state, Massachusetts, boasts the highest compensation of all states and ranks No. 2 in business friendliness.
We supplemented TOP’s ranking with other measures, including median household income, September 2022 unemployment rate and one-year change in jobless rate, venture capital per capita, and startup density.
It is interesting to note that the relationship between the amount of venture capital (money that is invested in creating new enterprises) and the unemployment rate do not always correlate.
For example, California has the second-highest amount of venture capital per capita at $3,957, while Florida’s venture capital is 22nd highest at just $252 per person. Still, California’s unemployment rate is much higher than Florida’s, at 3.9% compared to 2.5%.
Nevertheless, venture capital does play an important role in creating new enterprises and jobs. States with the highest amount of VC funding tend to have higher startup densities. Mississippi and West Virginia rank at the bottom in startup density and also have among the lowest VC per capita in the country. (These are cities that will add the most jobs by 2060 according to economists.)
Here are the best states to find a job.
Click here to read our detailed methodology.
50. Hawaii
> Median household income: $84,857 (6th highest)
> Unemployment rate, Sept. 2022: 3.5% (22nd highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.3 ppt.
> Venture capital investment per capita, 2021: $43.38 (5th lowest)
> Startup density: 167 new businesses in 2019 per 100,000 residents (14th lowest)
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49. Louisiana
> Median household income: $52,087 (3rd lowest)
> Unemployment rate, Sept. 2022: 3.4% (25th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.4 ppt.
> Venture capital investment per capita, 2021: $7.74 (2nd lowest)
> Startup density: 167 new businesses in 2019 per 100,000 residents (13th lowest)
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48. Mississippi
> Median household income: $48,716 (the lowest)
> Unemployment rate, Sept. 2022: 3.6% (20th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.4 ppt.
> Venture capital investment per capita, 2021: $1.62 (the lowest)
> Startup density: 135 new businesses in 2019 per 100,000 residents (2nd lowest)
47. West Virginia
> Median household income: $51,248 (2nd lowest)
> Unemployment rate, Sept. 2022: 4.0% (13th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.6 ppt.
> Venture capital investment per capita, 2021: $16.24 (3rd lowest)
> Startup density: 130 new businesses in 2019 per 100,000 residents (the lowest)
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46. New Mexico
> Median household income: $53,992 (6th lowest)
> Unemployment rate, Sept. 2022: 4.2% (6th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -2.0 ppt.
> Venture capital investment per capita, 2021: $77.27 (16th lowest)
> Startup density: 158 new businesses in 2019 per 100,000 residents (8th lowest)
45. Kentucky
> Median household income: $55,573 (7th lowest)
> Unemployment rate, Sept. 2022: 3.8% (16th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.9 ppt.
> Venture capital investment per capita, 2021: $43.82 (7th lowest)
> Startup density: 144 new businesses in 2019 per 100,000 residents (4th lowest)
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44. Michigan
> Median household income: $63,498 (17th lowest)
> Unemployment rate, Sept. 2022: 4.1% (8th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.6 ppt.
> Venture capital investment per capita, 2021: $136.80 (20th lowest)
> Startup density: 151 new businesses in 2019 per 100,000 residents (7th lowest)
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43. Alaska
> Median household income: $77,845 (12th highest)
> Unemployment rate, Sept. 2022: 4.4% (3rd highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.5 ppt.
> Venture capital investment per capita, 2021: $44.27 (8th lowest)
> Startup density: 216 new businesses in 2019 per 100,000 residents (15th highest)
42. Alabama
> Median household income: $53,913 (5th lowest)
> Unemployment rate, Sept. 2022: 2.6% (10th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.6 ppt.
> Venture capital investment per capita, 2021: $48.71 (9th lowest)
> Startup density: 146 new businesses in 2019 per 100,000 residents (5th lowest)
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41. Illinois
> Median household income: $72,205 (17th highest)
> Unemployment rate, Sept. 2022: 4.5% (the highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.0 ppt.
> Venture capital investment per capita, 2021: $554.33 (10th highest)
> Startup density: 188 new businesses in 2019 per 100,000 residents (25th lowest)
40. Maine
> Median household income: $64,767 (19th lowest)
> Unemployment rate, Sept. 2022: 3.3% (22nd lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.2 ppt.
> Venture capital investment per capita, 2021: $66.52 (13th lowest)
> Startup density: 221 new businesses in 2019 per 100,000 residents (13th highest)
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39. Montana
> Median household income: $63,249 (16th lowest)
> Unemployment rate, Sept. 2022: 2.9% (17th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.3 ppt.
> Venture capital investment per capita, 2021: $469.25 (13th highest)
> Startup density: 285 new businesses in 2019 per 100,000 residents (3rd highest)
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38. Arkansas
> Median household income: $52,528 (4th lowest)
> Unemployment rate, Sept. 2022: 3.5% (22nd highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: No change
> Venture capital investment per capita, 2021: $43.53 (6th lowest)
> Startup density: 169 new businesses in 2019 per 100,000 residents (16th lowest)
37. Oklahoma
> Median household income: $55,826 (8th lowest)
> Unemployment rate, Sept. 2022: 3.2% (19th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: No change
> Venture capital investment per capita, 2021: $27.87 (4th lowest)
> Startup density: 187 new businesses in 2019 per 100,000 residents (24th lowest)
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36. New Jersey
> Median household income: $89,296 (3rd highest)
> Unemployment rate, Sept. 2022: 3.3% (22nd lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -2.5 ppt.
> Venture capital investment per capita, 2021: $595.83 (9th highest)
> Startup density: 213 new businesses in 2019 per 100,000 residents (17th highest)
35. New York
> Median household income: $74,314 (14th highest)
> Unemployment rate, Sept. 2022: 4.3% (5th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.7 ppt.
> Venture capital investment per capita, 2021: $2,373.28 (3rd highest)
> Startup density: 228 new businesses in 2019 per 100,000 residents (9th highest)
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34. Pennsylvania
> Median household income: $68,957 (21st highest)
> Unemployment rate, Sept. 2022: 4.1% (8th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.7 ppt.
> Venture capital investment per capita, 2021: $510.59 (12th highest)
> Startup density: 161 new businesses in 2019 per 100,000 residents (11th lowest)
33. Delaware
> Median household income: $71,091 (19th highest)
> Unemployment rate, Sept. 2022: 4.3% (5th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.7 ppt.
> Venture capital investment per capita, 2021: $2,096.22 (4th highest)
> Startup density: 229 new businesses in 2019 per 100,000 residents (8th highest)
32. South Carolina
> Median household income: $59,318 (9th lowest)
> Unemployment rate, Sept. 2022: 3.2% (19th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.6 ppt.
> Venture capital investment per capita, 2021: $49.25 (10th lowest)
> Startup density: 180 new businesses in 2019 per 100,000 residents (19th lowest)
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31. Wisconsin
> Median household income: $67,125 (22nd highest)
> Unemployment rate, Sept. 2022: 3.2% (19th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.2 ppt.
> Venture capital investment per capita, 2021: $88.29 (18th lowest)
> Startup density: 158 new businesses in 2019 per 100,000 residents (9th lowest)
30. Iowa
> Median household income: $65,600 (21st lowest)
> Unemployment rate, Sept. 2022: 2.7% (13th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.4 ppt.
> Venture capital investment per capita, 2021: $64.11 (12th lowest)
> Startup density: 162 new businesses in 2019 per 100,000 residents (12th lowest)
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29. Missouri
> Median household income: $61,847 (11th lowest)
> Unemployment rate, Sept. 2022: 2.4% (8th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.6 ppt.
> Venture capital investment per capita, 2021: $198.68 (24th lowest)
> Startup density: 206 new businesses in 2019 per 100,000 residents (19th highest)
28. Oregon
> Median household income: $71,562 (18th highest)
> Unemployment rate, Sept. 2022: 3.8% (16th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.7 ppt.
> Venture capital investment per capita, 2021: $386.15 (15th highest)
> Startup density: 233 new businesses in 2019 per 100,000 residents (7th highest)
27. Indiana
> Median household income: $62,743 (14th lowest)
> Unemployment rate, Sept. 2022: 2.8% (14th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.3 ppt.
> Venture capital investment per capita, 2021: $68.27 (14th lowest)
> Startup density: 151 new businesses in 2019 per 100,000 residents (6th lowest)
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26. California
> Median household income: $84,907 (5th highest)
> Unemployment rate, Sept. 2022: 3.9% (14th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -2.5 ppt.
> Venture capital investment per capita, 2021: $3,957.09 (2nd highest)
> Startup density: 226 new businesses in 2019 per 100,000 residents (10th highest)
25. Kansas
> Median household income: $64,124 (18th lowest)
> Unemployment rate, Sept. 2022: 2.6% (10th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.4 ppt.
> Venture capital investment per capita, 2021: $96.64 (19th lowest)
> Startup density: 177 new businesses in 2019 per 100,000 residents (18th lowest)
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24. Ohio
> Median household income: $62,262 (13th lowest)
> Unemployment rate, Sept. 2022: 4.0% (13th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.7 ppt.
> Venture capital investment per capita, 2021: $200.62 (25th lowest)
> Startup density: 140 new businesses in 2019 per 100,000 residents (3rd lowest)
23. Minnesota
> Median household income: $77,720 (13th highest)
> Unemployment rate, Sept. 2022: 2.0% (the lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.2 ppt.
> Venture capital investment per capita, 2021: $234.88 (23rd highest)
> Startup density: 182 new businesses in 2019 per 100,000 residents (20th lowest)
22. Vermont
> Median household income: $72,431 (16th highest)
> Unemployment rate, Sept. 2022: 2.1% (2nd lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.1 ppt.
> Venture capital investment per capita, 2021: $1,024.78 (8th highest)
> Startup density: 206 new businesses in 2019 per 100,000 residents (18th highest)
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21. Tennessee
> Median household income: $59,695 (10th lowest)
> Unemployment rate, Sept. 2022: 3.4% (25th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.4 ppt.
> Venture capital investment per capita, 2021: $146.51 (21st lowest)
> Startup density: 159 new businesses in 2019 per 100,000 residents (10th lowest)
20. Idaho
> Median household income: $66,474 (24th lowest)
> Unemployment rate, Sept. 2022: 2.8% (14th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.6 ppt.
> Venture capital investment per capita, 2021: $201.35 (25th highest)
> Startup density: 266 new businesses in 2019 per 100,000 residents (5th highest)
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19. Wyoming
> Median household income: $65,204 (20th lowest)
> Unemployment rate, Sept. 2022: 3.3% (22nd lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.9 ppt.
> Venture capital investment per capita, 2021: $207.14 (24th highest)
> Startup density: 319 new businesses in 2019 per 100,000 residents (the highest)
18. Connecticut
> Median household income: $83,771 (8th highest)
> Unemployment rate, Sept. 2022: 4.0% (13th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.6 ppt.
> Venture capital investment per capita, 2021: $445.18 (14th highest)
> Startup density: 176 new businesses in 2019 per 100,000 residents (17th lowest)
17. Nebraska
> Median household income: $66,817 (24th highest)
> Unemployment rate, Sept. 2022: 2.2% (4th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.3 ppt.
> Venture capital investment per capita, 2021: $161.58 (22nd lowest)
> Startup density: 190 new businesses in 2019 per 100,000 residents (25th highest)
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16. Rhode Island
> Median household income: $74,008 (15th highest)
> Unemployment rate, Sept. 2022: 3.1% (18th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -2.3 ppt.
> Venture capital investment per capita, 2021: $79.76 (17th lowest)
> Startup density: 205 new businesses in 2019 per 100,000 residents (20th highest)
15. South Dakota
> Median household income: $66,143 (22nd lowest)
> Unemployment rate, Sept. 2022: 2.3% (7th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.8 ppt.
> Venture capital investment per capita, 2021: $190.30 (23rd lowest)
> Startup density: 214 new businesses in 2019 per 100,000 residents (16th highest)
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14. North Dakota
> Median household income: $66,519 (25th lowest)
> Unemployment rate, Sept. 2022: 2.2% (4th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.0 ppt.
> Venture capital investment per capita, 2021: $61.26 (11th lowest)
> Startup density: 221 new businesses in 2019 per 100,000 residents (12th highest)
13. Georgia
> Median household income: $66,559 (25th highest)
> Unemployment rate, Sept. 2022: 2.8% (14th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.7 ppt.
> Venture capital investment per capita, 2021: $377.45 (16th highest)
> Startup density: 201 new businesses in 2019 per 100,000 residents (21st highest)
12. North Carolina
> Median household income: $61,972 (12th lowest)
> Unemployment rate, Sept. 2022: 3.6% (20th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.9 ppt.
> Venture capital investment per capita, 2021: $345.74 (19th highest)
> Startup density: 184 new businesses in 2019 per 100,000 residents (22nd lowest)
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11. New Hampshire
> Median household income: $88,465 (4th highest)
> Unemployment rate, Sept. 2022: 2.2% (4th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.0 ppt.
> Venture capital investment per capita, 2021: $75.81 (15th lowest)
> Startup density: 197 new businesses in 2019 per 100,000 residents (23rd highest)
10. Virginia
> Median household income: $80,963 (10th highest)
> Unemployment rate, Sept. 2022: 2.6% (10th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.8 ppt.
> Venture capital investment per capita, 2021: $287.28 (20th highest)
> Startup density: 186 new businesses in 2019 per 100,000 residents (23rd lowest)
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9. Maryland
> Median household income: $90,203 (the highest)
> Unemployment rate, Sept. 2022: 4.0% (13th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.8 ppt.
> Venture capital investment per capita, 2021: $360.51 (18th highest)
> Startup density: 169 new businesses in 2019 per 100,000 residents (15th lowest)
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8. Florida
> Median household income: $63,062 (15th lowest)
> Unemployment rate, Sept. 2022: 2.5% (9th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.4 ppt.
> Venture capital investment per capita, 2021: $252.00 (22nd highest)
> Startup density: 274 new businesses in 2019 per 100,000 residents (4th highest)
7. Nevada
> Median household income: $66,274 (23rd lowest)
> Unemployment rate, Sept. 2022: 4.4% (3rd highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.2 ppt.
> Venture capital investment per capita, 2021: $548.36 (11th highest)
> Startup density: 222 new businesses in 2019 per 100,000 residents (11th highest)
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6. Texas
> Median household income: $66,963 (23rd highest)
> Unemployment rate, Sept. 2022: 4.0% (13th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.1 ppt.
> Venture capital investment per capita, 2021: $362.23 (17th highest)
> Startup density: 194 new businesses in 2019 per 100,000 residents (24th highest)
5. Colorado
> Median household income: $82,254 (9th highest)
> Unemployment rate, Sept. 2022: 3.4% (25th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.3 ppt.
> Venture capital investment per capita, 2021: $1,128.49 (6th highest)
> Startup density: 290 new businesses in 2019 per 100,000 residents (2nd highest)
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4. Arizona
> Median household income: $69,056 (20th highest)
> Unemployment rate, Sept. 2022: 3.7% (18th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.5 ppt.
> Venture capital investment per capita, 2021: $264.83 (21st highest)
> Startup density: 183 new businesses in 2019 per 100,000 residents (21st lowest)
3. Washington
> Median household income: $84,247 (7th highest)
> Unemployment rate, Sept. 2022: 3.7% (18th highest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.1 ppt.
> Venture capital investment per capita, 2021: $1,109.14 (7th highest)
> Startup density: 220 new businesses in 2019 per 100,000 residents (14th highest)
2. Massachusetts
> Median household income: $89,645 (2nd highest)
> Unemployment rate, Sept. 2022: 3.4% (25th lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -1.7 ppt.
> Venture capital investment per capita, 2021: $4,993.46 (the highest)
> Startup density: 197 new businesses in 2019 per 100,000 residents (22nd highest)
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1. Utah
> Median household income: $79,449 (11th highest)
> Unemployment rate, Sept. 2022: 2.1% (2nd lowest)
> 1-yr. change in unemployment rate, Sept. 2021 to Sept. 2022: -0.4 ppt.
> Venture capital investment per capita, 2021: $1,236.48 (5th highest)
> Startup density: 249 new businesses in 2019 per 100,000 residents (6th highest)
Methodology
To determine the best states to find a job, 24/7 Wall St. reviewed marketing agency TOP’s report Best States to Find a Job 2022. Using 51 metrics, TOP compared the 50 states across five dimensions: state economy, compensation and benefits, job market, quality of life, and business friendliness. The full description of TOP’s ranking system can be found here.
To supplement TOP’s findings, we also considered median household income from the U.S. Census Bureau’s 2021 American Community Survey. We also reviewed the September 2022 unemployment rates for each state and the one-year unemployment rate change, from September 2021 to September 2022.
Venture capital investment comes from PitchBook, and the per capita rate was calculated using 2020 five-year ACS population data. Startup density data is for 2019 and comes from the U.S. Bureau of Labor’s Business Dynamics Statistics.
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