(The Center Square) – A new study ranks Kentucky’s economy among the worst in the country.
The report by WalletHub evaluated the states based on 28 metrics that looked at each state’s economic activity, fiscal health and growth potential and found the Bluegrass State has the seventh-worst economy out of the 50 states and the District of Columbia. Its 45th place showing was due to finishing in the bottom 10 in six categories and 41st in four more.
Kentucky’s worst score came in its share of the population in poverty. With 16.3% of the state’s residents living below the poverty line, the state ranked 47th nationally.
High-tech jobs and industries are also areas where Kentucky has significant room for growth. Just 4.3% of its jobs are in STEM (Science, Technology, Engineering and Mathematics) fields. That was 45th best among the states. WalletHub also found that 43 states outperformed Kentucky in terms of startup activity, and 41 states had a higher share of their jobs in high-tech fields.
When it comes to attracting residents from other U.S. states, Kentucky’s not attracting many with a higher education background. It ranked 44th nationally in average educational attainment of residents migrating from elsewhere in the country.
Of the four categories where Kentucky came in 41st, three were in innovation categories: independent inventor patents, non-industry research and development investment and overall entrepreneurial activity.
Janet Harrah, the senior director at the Center for Economic Development and Business Research at Northern Kentucky University’s Haile College of Business, said “a favorable business environment” and a “robust educational and training system” are essential to landing good-paying jobs and a skilled workforce to fill those positions. But there are also other factors.
“Investing in the quality of life for residents is critical as well,” Harrah said. “Increasingly young talent in particular picks the place they want to live and then finds a job. This trend is likely to accelerate as more jobs become remote.”
Not all the news was bad for Kentucky. It did come in fifth nationally for exports per capita, and its foreclosure rate of less than .008% was seventh-best.
Of Kentucky’s neighbors, Tennessee earned the best score, finishing 15th, and Virginia was one spot behind.
Indiana came in 27th, with Illinois 32nd, Missouri 34th and Ohio 37th.
West Virginia was the only neighboring state with a lower ranking, and the study found it had the nation’s worst economic climate.
Washington state earned top honors.
