Moving Rates.org

The Bureau of Economic Analysis recently released state economic data. The data shows which states have gained and lost the most in terms of the size of their economies. The data shows the shift away from industrial Midwest. Michigan and Ohio were the only states to have their economies shrink during the 2000-2010 period. Meanwhile, Virginia, fueled by federal government job growth, Texas, and Florida were the best states for jobs among large states.

California remains the country’s largest economy with a gross domestic product (GDP) of $1.9 trillion. Despite facing a steep housing downturn and high costs of living, California still grew 17.8% during the period.

Overall, the statistics show the best states for jobs in terms of growth were actually some of the smallest states. Wyoming (48.7%) and North Dakota (47.1%) were the two fastest growing states. South Dakota also had a strong gain of 35.1%. These states were helped by the development of natural gas exploration and low tax rates for businesses. However, each of these states has GDP of $40 billion or less. In comparison, the median state Alabama has a GDP of $173 billion.

Among states with above median GDP levels, Oregon showed the largest percentage growth with a 37.5% gain. Oregon was helped by its proximity to more expensive California to the south, more expensive Washington to the north, no state sales tax, and a solid technology sector. Despite this growth, Oregon has an above national average unemployment rate of 9.6% as of May 2011.

Oregon was not the only state adjacent to California to show strong gains. Arizona’s GDP grew 27.5% while Nevada’s grew 26.7%. Nearby Utah grew 29.1% during the period.

In terms of overall job growth, Texas was the best state for jobs. Texas’ GDP gained 26.8% during the period, which is impressive for such a large state. Texas is now the second state in the nation overall with a GDP of $1.2 trillion. Texas has no state income tax, low business costs, and a sunny climate. New Mexico, which is adjacent to Texas in the West, had a solid gain of 24.4%.

Texas’ growth appears to be continuing in 2011. According to this report from Joe Vranich, 70 companies left California from January 1, 2011 through April 15, 2011 and 14 of them went to Texas, the largest beneficiary.

Texas’ economic standing could play a role in the race for the 2012 Republican nominee for President. Current Texas Governor Rick Perry, whom has held the office for 10 years, is a possible contender and will undoubtedly use his state’s economic record to support his campaign if he decides to run.