20 States With the Most Job Growth in 2023
In this article, we will be looking at 20 states with the most job growth in 2023. If you want to skip our detailed analysis of the US job market, you can go directly to 5 States With the Most Job Growth in 2023.
In an era of economic uncertainty, job opportunities play a key role in shaping the lives of individuals and communities. While the US economy navigates through the ebb and flow of market forces, certain states continue to set the pace for economic revitalization and job creation. Before we look at 20 states with the most job growth in 2023, let’s take a look at the job market in America. You can also take a look at the highest paying jobs without a degree in 2023.
Labor Shortage in the US Job Market
Previously, during the peak of the Covid-19 crisis, thousands of businesses in the US shut down their operations temporarily and millions of workers in the country found themselves unemployed. Since then, job opportunities have increased steadily and unemployment has declined. However, according to a report by the United States Chamber of Commerce published on November 20, there is a labor shortage in America and workforce participation remains below pre-pandemic levels. Compared to February 2020, about 1.7 million Americans are missing from the workforce. Moreover, the latest data shows that there are about 9.5 million job openings in America, but the number of unemployed workers is only 6.5 million. The report also mentions that the labor force participation rate has been declining since 2001.
The labor shortage in the US has had a significant impact on HR and staffing companies, prompting them to adopt innovative strategies to attract and retain talent. Such companies are looking for ways to enhance recruitment processes to identify and attract top talent. By leveraging advanced technologies such as artificial intelligence and machine learning, these companies are able to streamline candidate sourcing and screening while also reaching a wider pool of potential candidates.
Workday, Inc. (NYSE:WDAY) is one of the biggest providers of enterprise cloud applications for finance and human resources and one of the best staffing company stocks to buy. On September 27, Workday, Inc. (NYSE:WDAY) announced a series of new ML and AI capabilities and tools that will help businesses drive efficiency, streamline business processes, empower their people, and enhance employee experiences. The new AI solutions will include Generative AI capabilities to tackle common business challenges, including knowledge base articles, generating job descriptions, statements of work, contract analysis and corrections, and employee growth plans. Moreover, Workday, Inc. (NYSE:WDAY) also unveiled a new “User Success Platform”, which includes new tools that empower employees with real-time, contextual guidance on how to complete complex tasks within their workflow.
A New Era of Freelancing and Remote Work
According to a survey of unemployed workers conducted by the US Chamber of Commerce in 2022, about 49% of the respondents were not willing to take jobs that do not offer the opportunity for remote work. Recent trends indicate that there is an overwhelming preference for remote work, and this highlights the changing needs of the modern workforce to prioritize work-life balance.
The pandemic normalized remote work, and opened up opportunities for people to live and work anywhere with an internet connection. As a result, the freelance and contract workforce is booming, offering flexibility and independence for many. This trend is driven by both individual preferences and the increasing demand for project-based expertise.
As the freelance and gig economy continues to expand, platforms that connect businesses with skilled talent are expected to surge in popularity. Upwork Inc. (NASDAQ:UPWK) and Fiverr International Ltd. (NYSE:FVRR) are two major freelancing platforms that are well-positioned to reap significant benefits from the growing trend of gig economy and freelance work.
Both the platforms, Upwork Inc. (NASDAQ:UPWK) and Fiverr International Ltd. (NYSE:FVRR), are constantly looking to attract and retain top-tier freelancers by offering attractive incentives, such as better payment terms, skill development resources and project opportunities. They are introducing new features to provide a seamless and efficient experience for both businesses and freelancers. These platforms are also exploring partnerships with educational institutions and training providers to help nurture emerging talent. On November 6, Upwork Inc. (NASDAQ:UPWK) announced the launch of a new set of AI apps and offers as well as new educational content so that freelancers on the platform can use generative AI to boost productivity and enhance work quality. The new AI education modules will include AI skills-based courses and training resources from Coursera, Inc. (NYSE:COUR) and Udemy, Inc. (NASDAQ:UDMY).
On November 9, Fiverr International Ltd. (NYSE:FVRR) reported strong earnings for the fiscal third quarter of 2023, reflecting strong demand for freelance work. The company reported an EPS of $0.55 and beat estimates by $0.10. Fiverr International Ltd.‘s (NYSE:FVRR) revenue for the quarter grew by 12.1% year-over-year and amounted to $92.53 million, ahead of market consensus by $1.39 million.
Now that we have looked at some of the recent trends in America’s job market, let’s take a look at 20 states with the most job growth in 2023.
Photo by Shridhar Gupta on Unsplash
Methodology
In this article, we have ranked 20 states with the most job growth in 2023. To collect data for our list, we consulted the U.S. Bureau of Labor Statistics. This database provided us with information on the number of nonfarm employment by state for October 2023 as well as October 2022. We used year-over-year growth rate in percentage as the primary metric to rank the top 20 states with the most job growth in 2023. We used the year-over-year change in jobs as our secondary metric. In the case where multiple states had the same growth rate, tie breaking was done on the basis of new jobs added year-over-year. The 20 states with the most job growth in 2023 are listed below in ascending order of their job growth rates, primarily, and the number of new jobs added, secondarily.
20 States With the Most Job Growth in 2023
20. Indiana
Year-Over-Year Job Growth Rate: 1.9%
New Jobs Added Year-Over-Year: 62,400
First up on our list of 20 states with the most job growth in 2023 is Indiana. The state of Indiana is best known for its steel mills and manufacturing industry. Indiana witnessed a 1.9% job growth comparing October 2022 to October 2023, adding 62,400 more new jobs year-over-year in October 2023.
19. Georgia
Year-Over-Year Job Growth Rate: 1.9%
New Jobs Added Year-Over-Year: 93,400
Georgia is a state in the Southeastern region of the US. Georgia’s capital city, Atlanta, is a critical driver of Georgia's economic prosperity, emerging as a prominent center for finance, insurance, technology, manufacturing, real estate, services, logistics, and transportation. The Hartsfield–Jackson Atlanta International Airport is also the world’s busiest airport. Georgia saw a 1.9% job growth in October 2023 year-over-year, and it added 93,400 more new jobs.
18. New Mexico
Year-Over-Year Job Growth Rate: 2%
New Jobs Added Year-Over-Year: 17,100
New Mexico is one of the Mountain States of the southern Rocky Mountains. While New Mexico is the fifth largest US state in terms of area, it ranks among the least densely populated states. The economic landscape of New Mexico is heavily influenced by tourism, oil and gas production, and federal government spending. New Mexico’s job rate for October 2023 grew by 2% year-over-year and it added 17,100 more new jobs.
17. New Jersey
Year-Over-Year Job Growth Rate: 2%
New Jobs Added Year-Over-Year: 85,700
New Jersey ranks among the smallest states by area, but it is the most densely populated state in the US. The state's economy is highly diversified and features high levels of both productivity and retail consumption. New Jersey is best known for its boardwalk beaches and Atlantic City casinos, which attract millions of tourists every year. New Jersey’s job rate for October 2023 grew by 2% year-over-year and it added 85,700 more new jobs.
16. North Carolina
Year-Over-Year Job Growth Rate: 2%
New Jobs Added Year-Over-Year: 96,600
North Carolina is a major producer of flue-cured tobacco and sweet potatoes. North Carolina’s largest city, Charlotte, is a major textile and trade center. North Carolina saw a 2% job growth in October 2023 year-over-year, and it added 96,600 more new jobs.
15. Ohio
Year-Over-Year Job Growth Rate: 2%
New Jobs Added Year-Over-Year: 109,600
Ohio maintains its industrial identity and it is home to a thriving manufacturing sector. It is also one of the largest automobile producing states in the US. The US state of Ohio ranks among the top 15 on our list of states with the most job growth in 2023. Ohio’s employment for October 2023 grew by 2% year-over-year and it added 109,600 more new jobs.
14. Delaware
Year-Over-Year Job Growth Rate: 2.1%
New Jobs Added Year-Over-Year: 10,000
Delaware ranks among the smallest and least populated states in the US. Delaware’s biggest industries include banking, chemicals, and pharmaceuticals. Delaware saw a 2.1% job growth in October 2023 year-over-year, and it added 10,000 more new jobs.
13. Massachusetts
Year-Over-Year Job Growth Rate: 2.1%
New Jobs Added Year-Over-Year: 77,100
Massachusetts ranks among the smallest and most densely populated states. Massachusetts is a global leader in finance, engineering, biotechnology, artificial intelligence, and higher education. The state's capital city, Boston, is its cultural and financial hub. Massachusetts’ employment for October 2023 grew by 2.1% year-over-year and it added 77,100 more new jobs over the year.
12. Pennsylvania
Year-Over-Year Job Growth Rate: 2.1%
New Jobs Added Year-Over-Year: 129,200
Pennsylvania is a state in the Mid-Atlantic region with a diverse geography. Philadelphia, also commonly known as Philly, is the most populated city in the state of Pennsylvania. Philly is the state's main center for finance, technology, and manufacturing. The US state of Pennsylvania saw a 2.1% job growth in October 2023 year-over-year and it added 129,200 more new jobs.
11. Louisiana
Year-Over-Year Job Growth Rate: 2.2%
New Jobs Added Year-Over-Year: 43,400
Louisiana is a South Central US state that is known for the beauty of its distinctive architecture and historic buildings. An abundance of oil and natural gas resources, agriculture, and the emergence of medical and technology hubs are driving Louisiana’s economy. Louisiana’s employment for October 2023 grew by 2.2% year-over-year and it added 43,400 more new jobs over the year.
10. South Carolina
Year-Over-Year Job Growth Rate: 2.2%
New Jobs Added Year-Over-Year: 49,200
South Carolina is a state in the coastal Southeastern region of the US that ranks among the top 10 on our list of 20 states with the most job growth in 2023. Industries such as aerospace, agribusiness, and automotive manufacturing all play a key role in South Carolina’s economy. South Carolina’s employment for October 2023 grew by 2.2% year-over-year and it added 49,200 more new jobs.
9. South Dakota
Year-Over-Year Job Growth Rate: 2.3%
New Jobs Added Year-Over-Year: 10,500
South Dakota ranks among the least populated US states. It is best known for The Black Hills and Mount Rushmore. Tourism, agriculture, retail, finance, and healthcare are some of the biggest industries in South Dakota. South Dakota saw a 2.3% job growth in October 2023 year-over-year and it added 10,500 more new jobs.
8. Utah
Year-Over-Year Job Growth Rate: 2.3%
New Jobs Added Year-Over-Year: 39,600
Utah has a highly diversified economy that covers major industries including tourism, agriculture, mining, information technology, manufacturing, and petroleum production. Utah’s employment for October 2023 grew by 2.3% year-over-year and it added 39,600 more new jobs over the year.
7. Washington
Year-Over-Year Job Growth Rate: 2.3%
New Jobs Added Year-Over-Year: 82,600
The state of Washington ranks among the richest states in America and the states with the most job growth in 2023. Key industries in Washington state include aerospace, agriculture, computer software development, and lumber and wood. Washington saw a 2.3% job growth in October 2023 year-over-year and it added 82,600 more new jobs.
6. Wyoming
Year-Over-Year Job Growth Rate: 2.6%
New Jobs Added Year-Over-Year: 7,500
Wyoming is the least populated state in the United States. Wyoming's economic landscape is mainly driven by tourism and mineral extraction, including coal, natural gas, oil, and trona. Wyoming’s employment for October 2023 grew by 2.6% year-over-year and it added 7,500 more new jobs over the year.
Click to continue reading and see 5 States With the Most Job Growth in 2023.
Suggested Articles:
Disclosure: None. 20 States With the Most Job Growth in 2023 is published on Insider Monkey.