15 States With the Biggest Labor Productiveness

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Editor’s Word: This story initially appeared on Smartest Dollar.

With quite a few financial specialists predicting that the U.S. is headed towards recession, one of many many regarding alerts is a pointy decline in labor productivity.

After greater than a decade of below-average productivity growth, the COVID-19 pandemic raised the prospect of a productivity boom. Many low-productivity jobs have been eradicated early within the pandemic, whereas main infrastructure investments and the accelerated adoption of automation and synthetic intelligence created situations for productiveness to rise.

However newer knowledge has proven productiveness declining. The Bureau of Labor Statistics reported a 7.5% decline in labor productiveness throughout the first quarter of 2022, the steepest decline since 1947.

Productiveness is a helpful metric for assessing the economic system as a result of it displays the economic system’s potential to generate items and providers from the identical quantity of labor. Productiveness progress can concurrently profit companies by elevated income, customers by elevated availability of products and providers, and staff by elevated compensation.

In current a long time, nonetheless, the hyperlink between productiveness progress and wage progress has weakened. Consultants time period this phenomenon the “productivity-pay gap.” Starting within the late Seventies, the expansion price for compensation started to degree out, at the same time as labor productiveness continued to extend.

To find out the states with the best labor productiveness, researchers at Smartest Greenback divided every state’s whole value-added output by its whole annual hours labored. The information used on this evaluation is from the U.S. Bureau of Labor Statistics Office of Productivity and Technology. Learn extra about our methodology on the finish.

Listed here are the states with the best labor productiveness.

15. Pennsylvania

Pittsburgh, Pennsylvania
Sean Pavone / Shutterstock.com
  • Labor productiveness: $79.26
  • Whole value-added output: $702,670,372,000
  • Whole employment: 5,392,400
  • Common annual hours per employee: 1,644

14. Texas

Corpus Christi Texas
Sean Pavone / Shutterstock.com
  • Labor productiveness: $80.54
  • Whole value-added output: $1,640,004,984,000
  • Whole employment: 11,749,000
  • Common annual hours per employee: 1,733

13. Wyoming

Jackson Hole, Wyoming
f11photo / Shutterstock.com
  • Labor productiveness: $80.62
  • Whole value-added output: $31,586,315,000
  • Whole employment: 233,400
  • Common annual hours per employee: 1,679

12. North Dakota

Fargo, North Dakota
Jacob Boomsma / Shutterstock.com
  • Labor productiveness: $82.06
  • Whole value-added output: $48,299,490,000
  • Whole employment: 353,500
  • Common annual hours per employee: 1,665

11. Colorado

Colorado Power Plant
Ann Cantelow / Shutterstock.com
  • Labor productiveness: $82.26
  • Whole value-added output: $334,379,906,000
  • Whole employment: 2,540,100
  • Common annual hours per employee: 1,600

10. Maryland

Baltimore, Maryland
ESB Skilled / Shutterstock.com
  • Labor productiveness: $82.34
  • Whole value-added output: $310,204,445,000
  • Whole employment: 2,313,200
  • Common annual hours per employee: 1,629

9. Illinois

Joliet Illinois
Henryk Sadura / Shutterstock.com
  • Labor productiveness: $88.42
  • Whole value-added output: $778,025,075,000
  • Whole employment: 5,326,200
  • Common annual hours per employee: 1,652

8. Alaska

Anchorage, Alaska
Rex Lisman / Shutterstock.com
  • Labor productiveness: $90.44
  • Whole value-added output: $39,763,770,000
  • Whole employment: 262,600
  • Common annual hours per employee: 1,674

7. New Jersey

Trenton, New Jersey
FotosForTheFuture / Shutterstock.com
  • Labor productiveness: $91.21
  • Whole value-added output: $548,008,610,000
  • Whole employment: 3,655,500
  • Common annual hours per employee: 1,644

6. Connecticut

house in Hartford Connecticut
Jon Bilous / Shutterstock.com
  • Labor productiveness: $98.65
  • Whole value-added output: $247,743,547,000
  • Whole employment: 1,538,800
  • Common annual hours per employee: 1,632

5. Massachusetts

Worcester, Massachusetts
Sean Pavone / Shutterstock.com
  • Labor productiveness: $100.72
  • Whole value-added output: $533,657,907,000
  • Whole employment: 3,288,900
  • Common annual hours per employee: 1,611

4. California

Modesto, California
Matt Gush / Shutterstock.com
  • Labor productiveness: $103.30
  • Whole value-added output: $2,729,409,518,000
  • Whole employment: 15,875,600
  • Common annual hours per employee: 1,664

3. Delaware

Wilmington, Delaware
Paul Brady Pictures / Shutterstock.com
  • Labor productiveness: $104.53
  • Whole value-added output: $66,888,567,000
  • Whole employment: 404,900
  • Common annual hours per employee: 1,580

2. Washington

Bremerton, Washington
Ceri Breeze / Shutterstock.com
  • Labor productiveness: $106.09
  • Whole value-added output: $536,309,572,000
  • Whole employment: 3,071,500
  • Common annual hours per employee: 1,646

1. New York

Buffalo New York
Sopotnicki / Shutterstock.com
  • Labor productiveness: $117.86
  • Whole value-added output: $1,530,281,417,000
  • Whole employment: 8,106,800
  • Common annual hours per employee: 1,602

Methodology

Man analyzing data on a laptop
fizkes / Shutterstock.com

The information used on this evaluation is from the U.S. Bureau of Labor Statistics Office of Productivity and Technology (OPT). To find out the states with the best labor productiveness, researchers divided every state’s whole value-added output by its whole annual hours labored. Within the occasion of a tie, the state with the higher value-added output was ranked above.

All knowledge proven is for personal, nonfarm industries in 2021. Worth-added output is outlined as gross output minus intermediate inputs (corresponding to power, materials, and providers). A whole set of definitions might be discovered on the BLS glossary page.

Disclosure: The knowledge you learn right here is all the time goal. Nonetheless, we typically obtain compensation whenever you click on hyperlinks inside our tales.



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