13 States Struggling With Declining Industries and Job Loss

Globalization and international competition have affected job growth across America. According to a study conducted by the Harvard Business School, America’s job generation capability reduced dramatically between 1990 and 2014.

Local job generation has primarily focused on construction, health care, retail, and other industry verticals protected from international competition. Factors like automation, changing industry trends, and certain market factors have further deteriorated the job scene across most of America.

However, these effects are more pronounced in some states than in others. To understand the situation better, we looked at various sources and studies to arrive at a list of 13 states struggling with poor-performing industries and stalled job growth.

1. New York

Things are looking glum in NYC, especially after the COVID-19 pandemic. The tourists have yet to return, and the city is grappling with a workforce shortage.

Moreover, the gloominess isn’t limited to NYC. According to the Brookings Institution, New York State has lost more than 296,000 jobs. Practically every industry sector was affected by the pandemic, and the effects are still festering.

2. Illinois

Illinois is another state where jobs have suffered a lot. After the pandemic, the state lost more than 73,000 jobs and continues to reel under the effects of poor economic growth, sluggish industrial activity, and rising inflation.

If you live in Illinois or plan to move there, it is essential to consider that infrastructure is crumbling, tax rates are high, and people aren’t generally optimistic. However, there may be growth in building-related jobs in the future.

3. Louisiana

Like New York, Louisiana heavily depends on tourism and hospitality industries. Unfortunately, the state has not seen a growth in tourism since the pandemic, and many businesses have suffered losses.

As a result, job growth remains poor, and inflation rates are pretty high. Moreover, living costs in New Orleans can be high, and even a well-paying job may not be sufficient to cover your expenses.

4. Pennsylvania

Pennsylvania has significantly suffered due to poor growth in critical sectors such as tourism, agriculture, and manufacturing. As a result, job growth is less than impressive, and it may be tough to find a well-paying job.

The state needs to perform better in health care, especially in rural areas where workforce shortages persist. Considering it is one of the more expensive states to live in, these factors don’t add any cheer.

5. Hawaii

Although Hawaii brings sun-kissed beaches and tropical forests to mind, tourism has ravaged the islands in recent years. As a result, locals have increasingly pressured the government to restrict the flow of tourists into Hawaii.

However, the adverse effects of the Maui fires and resulting job losses have forced residents and authorities to woo tourists again. Unfortunately, visitor spending has reduced by 27%, and visitors have reduced by 22%, too.

6. Georgia

Although a lot of people move to Georgia due to perceived lack of tax burden and enhanced financial opportunities, the local industry scene isn’t impressive.

Although jobs are plenty and wages have risen in metro Atlanta, inflation rates have surpassed most predictions. With an inflation rate of 10%, you probably will not have much money to spend even if you manage to find a job.

7. Kentucky

Floods and other natural disasters have ravaged Kentucky in the last few years, leading to widespread destruction and job losses. Coal mining towns in the state’s interior were particularly hit, leading to a dire state of affairs.

It shouldn’t come as a surprise then that Kentucky has one of the highest state unemployment benefits claims rates. However, reconstruction and rehabilitation may create opportunities in the future.

8. South Carolina

South Carolina is famous for its beautiful coastline and charming cities like Charleston. Many freelancers and remote workers have moved to Charleston and other cities to enjoy a more laid-back and affordable lifestyle.

Although most job-related metrics look good on the surface, things aren’t as perfect as they seem at first glance. A staggering 46% of local residents feel South Carolina’s economy is poorer than the year before.

9. Oklahoma

Oklahoma used to fare pretty well in the agricultural and petroleum sectors. However, the economy has diversified in recent years, albeit with mixed results. The state’s per capita income is lower than the national average.

Agriculture is suffering due to competition from other states and the declining value of local farms. Energy and natural resources have witnessed a steady decline in growth due to various industry-specific factors.

10. Tennessee

Tennessee is famous for many things, including its highly coveted whisky. However, it is not known for its job growth or the availability of opportunities.

What makes things worse is that it also has the highest state and local tax rates in the US. As most industries are declining across the US, you will probably not find a job here, and if you do, you will spend it all on taxes.

11. Mississippi

Mississippi is one of the most culturally rich states in the US, with a particular focus on blues music and unique cuisine. However, it is not a great place to search for job opportunities.

Although the southern state had close to 70,000 job openings in April 2024, it also ranks among the worst states in the US regarding earnings ratio. This means that even if you find a job in Mississippi, you may not be able to afford a decent living for your family.

12. Alaska

Alaska has historically been famous among those looking for job opportunities and an escape from competitive atmospheres. Unfortunately, Alaska’s job scene isn’t all that great.

Although the state government paints a picture of optimism by quoting economists who forecast a job growth rate of 1.7%, workers often have to clock in more than 42.2 hours per week. This is the worst-performing state in America in terms of workweek length.

13. Texas

People have been flocking to Texas in recent years thanks to a wide range of job openings in urban centers such as Austin, Dallas, and Houston. In fact, Texas has a job growth rate of 3.2%, making it one of the best states to move to for better career opportunities.

Yet, the state ranks poorly in terms of average work week and union representation. You may get a job, but you will probably have a lot of complaints about your living conditions.