Kiplinger Economic Outlook for All 50 States 2020
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Kiplinger’s Economic Outlook for All 50 States, 2020

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Low jobless rates and rising incomes are helping to fatten state coffers across the U.S. Revenue from sales, personal and corporate taxes is on the rise --the best growth since before the Great Recession.

States can expect healthy tax revenues for at least the next several quarters as low unemployment continues, incomes slowly rise, inflation increases modestly and higher energy prices generate more income for states with severance taxes.

But the outlook for individual states is varied, with several regions facing big challenges. The trade war with China is battering the agriculture industry in the Midwest and the prairie states and crimping activity at Southern ports. Manufacturing is slowing down because slowing global growth is hurting exports. New England's economy is slowing as employers struggle to find the workers they need.

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Although construction spending is up markedly this year, most states won't boost spending much. As they prepare for 2020, governors and legislatures are eyeing modest spending increases --perhaps reversing cuts made after the Great Recession. They also intend to sock away some of the newfound revenues in rainy-day funds. (See our list of States Most Unprepared for the Next Recession.)

Read on for Kiplinger's exclusive economic outlook --including projected job-growth rates-- for every state, listed alphabetically.

SEE ALSO: 18 States With Scary Death Taxes

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 2 of 52

Alabama

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Population: 4,888,000

Unemployment rate: 3.1%

2019 job growth: 1.8% (37,000 new jobs)

2020 job growth: 1.2% (25,000 new jobs)

Alabama's job growth has begun to pick up this year. 2019 job growth of 1.8% would be its fastest growth since 2005. Tuscaloosa, Decatur, and the east side of Mobile Bay are showing the strongest job growth at the moment, all around 3%. Its August unemployment rate of 3.1% is a record for the state.

Construction is an especially strong growth area. Alabama has a growing automotive industry, with three vehicle manufacturing plants, an engine plant, and Toyota/Mazda building a new vehicle plant in Huntsville by 2021 that should amount to 4,000 jobs. Alabama's reliance on the auto industry could hurt it a bit if the industry slows down later this year.

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Amazon will create 1,500 jobs at a fulfillment center in Birmingham next year. Blue Origin will create 300 jobs in Huntsville at a rocket engine plant, also next year. Airbus is adding 430 employees to a new assembly line in Mobile.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 3 of 52

Alaska

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Population: 737,000

Unemployment rate: 6.2%

2019 job growth: 1.1% (3,600)

2020 job growth: 0.3% (1,000)

Growth in Alaska has picked up along with oil prices. Expect job growth of 1.1% in 2019 after three straight years of declines. However, this growth is narrow, being limited for the moment to the energy industry, construction, and food services. The metro areas have yet to see much benefit, and the state's population is still declining as 11,000 residents moved south last year. Alaska's initial unemployment claims are low, and its August unemployment rate of 6.2% is the lowest it's been since 2007, but the rate remains the highest by far of any of the states.

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Oil development continues on Alaska's North Slope. ConocoPhillips has three significant projects that are ongoing. Greater Mooses Tooth 1 (GMT1) started operating in October 2018, but is only at 25% capacity so far. Greater Mooses Tooth 2 (GMT2) is larger, and under construction with 700 workers, and is predicted to start producing in 2021. Willow is the largest of them all and will employ thousands in its construction. It will start producing in 2024. All three projects together have the capacity for 165,000 barrels of oil per day.

SEE ALSO: 10 States With the Lowest Gas Taxes

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 4 of 52

Arizona

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Population: 7,172,000

Unemployment rate: 5.0%

2019 job growth: 2.5% (72,300)

2020 job growth: 1.7% (50,400)

Arizona is noted for its growing labor force as well as its relative affordability and business-friendly regulatory environment. Hiring will increase by 2.5% this year, just a tad below 2018's 2.7% rise, and well distributed across sectors from good-paying blue-collar work in construction, manufacturing and trucking businesses to sophisticated R&D expansions. The strongest growth will be in the Phoenix area.

The Mayo Clinic is investing $650 million for a major expansion of its operations in Phoenix, while Caterpillar's Surface Mining & Technology Division is building a new headquarters that will bring about 1,000 engineers, product developers and support staff to Tucson. Rosemont Mine wants to establish a $2 billion copper mine in the Tucson area that will generate about 2,500 construction and support jobs, though the project has been blocked for now by a federal judge.

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The service sector is expanding too, partly because of the growing number of retirees choosing the state for its combination of a warm and stable climate, affordability and well-developed healthcare system. It's a longstanding magnet for tourism with attractions from the Grand Canyon to the scenic red rock country around Sedona, Monument Valley and the Hoover Dam. Large financial firms including Voya, Allstate and Freedom Financial are following the growth in population by relocating or expanding in Arizona. That route has been made easier by the state government's initiative in enacting a "fintech sandbox" that encourages companies to try new business methods without being unduly burdened by regulation.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 5 of 52

Arkansas

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Population: 3,014,000

Unemployment rate: 3.4%

2019 job growth: 1.1% (14,300)

2020 job growth: 0.6% (7,700)

The economy is still growing and adding population in the northern part of Arkansas and in the central region of the state where the urban population is concentrated. The strongest growth will be in the northwest, as usual. But other more rural parts of the state are losing population, which shows up in declining labor force participation rates and complicates difficulties in attracting industry. Arkansas will add about 1.1% to its workforce overall this year, matching last year's increase, but longer-term prospects are weakening as regional disparities grow.

The state's signature firm, Bentonville-based Walmart, is investing $31 million to upgrade five of its supercenters, and Coca-Cola Bottling Co. is spending $33 million on a 200,000-square-foot expansion in West Memphis that will bring about 60 jobs to it. There is substantial growth in Arkansas' leisure and hospitality industries as well, aided by a planned $250 million expansion by Southland Gaming and Racing in the eastern part of the state. It will include a casino and hotel that will create 400 new jobs, and upwards of 1,500 during the construction phase.

SEE ALSO: 16 Great Places to Retire in the South

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 6 of 52

California

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Population: 39,557,000

Unemployment rate: 4.1%

2019 job growth: 1.8% (311,400)

2020 job growth: 0.9% (158,100)

California growth downshifted late last year as the trade war with China heated up. So far this year, trade with Asia through the Port of Long Beach has fallen 5%. Continuing tensions will likely keep job growth subdued at 1.7% in 2019, down from 2.0% in 2018. The slowdown in job growth has been most pronounced in Southern California, especially in the Inland Empire, which is home to a lot of warehousing and logistics. Growth in the east Bay Area appears to be untouched, as the tech economy juggernaut continues on its merry way.

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It's not just the trade war that is slowing California growth. The population growth rate has been cut in half over the past three years as the number of Californians moving to other states has picked up. In large part, this is a result of California's high housing prices and the lack of enough affordable construction. Governor Newsom has threatened to withhold funding from localities that fail to meet zoning and construction goals on housing. That would mark a major shift in a state with a reputation for hostility to development. Home prices in the most expensive areas are beginning to edge down, as buyer resistance stiffens. Federal tax deduction limits on state and local taxes has also likely slowed home price increases, as well as reducing disposable income in some high-priced areas.

Besides housing prices, the fire risk in California has gotten publicity in the past two years. California's drought is over for now, and the reservoirs are full, but there is a danger that new green growth in the mountainsides will dry out into a new fire hazard if dry conditions return.

Notable construction in San Francisco includes activity in the South of Market and Potrero Hill neighborhoods, where multifamily projects are rapidly rising. Also, the UCSF Medical Center and the Chase Center. In Los Angeles, construction continues to be robust, with mixed use and residential work most visible in downtown, Culver City, and Hollywood. Current construction statistics are impressive, with over 3 million square feet of office space; more than 2,000 residential units; over 1 million square feet of retail, and more than 1,300 hotel rooms in progress. Along with ongoing work at the Los Angeles International Airport, more than 100 office, retail, residential, and hospitality projects are in the pipeline.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 7 of 52

Colorado

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Population: 5,696,000

Unemployment rate: 2.8%

2019 job growth: 2.1% (57,700)

2020 job growth: 1.4% (39,200)

Growth is steady in Colorado's economy, but at a moderately slower pace than last year because the supply of skilled workers is running low. With unemployment at a low 2.8% and a growing over-65 population, Colorado authorities are urging employers to consider hiring more older workers as a solution to labor scarcity. Payrolls will increase by 2.1% overall in the state this year, a notch down from last year's 2.4% pace. Some of the briskest hiring will be in the healthcare sector and among providers of professional and business services.

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Among established high-tech businesses, Amazon is expanding its Denver Tech Hub and will more than double its workforce by adding 400 new jobs. Payroll processing startup Gusto is leasing an additional 60,000 square feet of office space in Denver, aims to double its current 500-person workforce in coming years and currently has engineering and other positions open. The state is tightening regulation of its oil and gas industry, which has raised concern in key producing areas like Greeley about the impact on the local economy and on state revenues but hiring is still expanding at this time.

Job growth in Denver has slowed, perhaps because of high housing prices, but is still strong elsewhere in the state. The I-25 corridor between Denver and Colorado Springs is booming, such as the town of Castle Rock.

Colorado is a major force in aerospace, with about 400 companies in the field and is home to the Air Force Academy in Colorado Springs. The state hopes to use that as a selling point to land a headquarters for the U.S. Space Command. Four of six military bases that could become the new home for the Space Command are located in Colorado.

SEE ALSO: 10 Great Places to Retire If You Hate the Cold

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 8 of 52

Connecticut

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Population: 3,573,000

Unemployment rate: 3.6%

2019 job growth: 0.4% (6,800)

2020 job growth: 0.2% (3,400)

Connecticut can look forward to a second year of economic growth after two years of economic contraction before 2018, but now is benefiting from healthy production lines at some of its big manufacturers of high-value-added products. Electric Boat, a subsidiary of General Dynamics, is spending $850 million over a period of years at its Groton shipyard to pick up the pace of submarine construction and will add thousands to its existing workforce.

High-tech industries are expanding as well, including Infosys, which has opened a $21 million technology hub in Hartford and has committed to creating at least 1,000 jobs over the next few years. Aerospace company Ensign-Beckford is expanding in Simsbury, creating 140 new jobs. Sema4 (genomics) is adding 300. Healthcare is also poised to grow, partly because Connecticut's relatively large aging population will drive demand for increased services. Housing demand has been soft in the central and western part of the state. It is expected to improve to some degree as more jobs generate higher incomes and buying potential, but the upside is limited because of the state's minimal population growth.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 9 of 52

Delaware

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Population: 967,000

Unemployment rate: 3.4%

2019 job growth: 1.0% (4,600)

2020 job growth: 0.7% (3,200)

Continuing strong hiring is due to major investment in the state's finance, logistics and bio-pharmaceutical sectors. Delaware markets itself as an attractive, lower-tax hub for East Coast business. That is fueling a ramp-up in financial services, including by JPMorgan Chase, which is opening about 50 branches and hiring 300 over the next five years. Wilmington already is Chase's headquarters for its credit card business.

The state has a reputation as a logistics center; UPS has 11,000 employees in Delaware. Delaware Coastal Airport is getting an expansion allowing for larger planes to land. The Port of Wilmington's expansion will make it one of the largest logistics facilities on the Delaware River courtesy of Gulftainer's plan to invest $600 million as part of its 50-year lease with the state to privately run the port.

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Its bio-pharmaceutical sector is getting a lift as well, with several expansions in the works including Wilmington Pharmatech's investment in a new science research and manufacturing plant in Newark that will mean jobs for up to 139 people.

Importantly, Delaware is attracting a growing population that helps build a foundation for job growth and rising incomes. It's also a popular tourism destination, known for its sandy beaches that help drive job gains in its leisure and hospitality industry.

SEE ALSO: 10 States with the Lowest Beer Taxes

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 10 of 52

District of Columbia

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Population: 702,000

Unemployment rate: 5.5%

2019 job growth: 1.1% (8,700)

2020 job growth: 0.7% (5,600)

The federal government budget deal earlier this year and the lifting of the federal debt ceiling was a boon for the district's economy, but there may be further bumps in the road. The budget deal must be renewed on November 21.

The district's traditional main non-governmental industries of professional and business support services and hospitality remain strong. However, federal employment in the district continues to trend down.

The district's apartment market has been overbuilt somewhat, and vacancy rates are high at about 6%. Rent growth has been strong up to now, but is likely to ease in the future. Office building vacancies are fairly low at 12%, but demand for space is soft, and rent growth is modest.

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The news that Amazon is establishing a campus just across the Potomac River in Arlington, VA will bring many well-paying jobs to the region and will increase regional prosperity. More jobs may be coming if Amazon's decision to cancel a proposed New York headquarters ends up transferring some to the Virginia location.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 11 of 52

Florida

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Population: 21,299,000

Unemployment rate: 3.3%

2019 job growth: 2.5% (222,300)

2020 job growth: 1.9% (173,300)

Florida will see jobs grow by 2.5% in 2019, the fastest growth of any state outside the West. Business services, health care, and construction will see continued strong gains, though construction will moderate from super-strong to just strong. Growth in tourism will also moderate after very strong growth: 2018 was the eighth year in a row of tourism growth.

Florida's economic growth is underpinned by strong population growth, which in turn is the result of the nation's highest level of in-migration, especially from high-tax Northeastern states, but also internationally. Florida is one of only seven states without an income tax.

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The Orlando area will, once again, see the hottest growth, along with the nearby Atlantic coast of Palm Bay to Titusville. Lockheed Martin's new facility brought 1,000 jobs. The area around Cape Canaveral is seeing the development of a space industry, with satellite and rocket manufacturing, and commercial satellite-launching facilities being built by Blue Origin and Firefly. SpaceX won a contract from the Air Force. OneWeb Satellites will begin satellite assembly there. Boeing and United Launch Systems are also there.

Development along the southwest coast from Naples to Fort Myers is also heating up, despite periodic encounters with "red tide" algae blooms off the coast.

A major expansion of Pensacola's airport aviation maintenance facilities will take place over the next several years, resulting in a gain of 1,600 jobs. Panama City, a popular beach spot in the panhandle, is seeing tourism picking up, but is still recovering from Hurricane Michael last year.

SEE ALSO: 7 Great Places to Retire in Florida

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 12 of 52

Georgia

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Population: 21,299,000

Unemployment rate: 3.6%

2019 job growth: 1.7% (78,000)

2020 job growth: 1.2% (55,700)

Job growth in Georgia will be 1.7% in 2019, better than the 1.4% U.S. average. The Atlanta metro area continues to drive the state, with growth of 1.9%. It is the distribution hub of the Southeast. The Gainesville area, to the northeast, will be one of the biggest hotspots, and has been for a number of years. Fox bikes are relocating to the area, bringing 800 jobs. They are a refugee from high California housing costs. Nearby Jackson County is seeing the construction of a new battery factory by Korea's SK group that will employ 2,000.

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Georgia remains committed to expanding its international trade, with a port deepening project in Savannah, along with a trade industrial park that could result in 3,000 new jobs. However, recent trade tensions have resulted in a slowdown in job growth in manufacturing.

Construction is the strongest industry in Georgia, with 6% job gains. Jobs in health care are growing by more than 3%.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 13 of 52

Hawaii

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Population: 1,420,000

Unemployment rate: 2.7%

2019 job growth: 0.4% (2,600)

2020 job growth: 0.4% (2,600)

Hawaii lags the rest of the West with modest job growth this year and next, constrained by a lack of population growth. Its job creation rate is not expected to change much over the next several years. Similar to California, Hawaii has a high cost of living that likely led to a net emigration of 12,000 to other states last year. The economy has also slowed a bit, and Hawaii's low unemployment rate has risen to 2.8% from 2.3% a year ago. The tourism sector is still doing well, with expectations for a 2% increase, and hotel, food service, and real estate account for half of the job gains. However, visitor spending has flattened, and tourism growth is expected to flatten. State government accounts for the other half of the job gains this year, but will be unable to continue because of budget constraints. Most other sectors are barely growing.

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Housing prices appear to have peaked in Honolulu. Prices have risen even faster than in California, and the high prices and economic slowdown have put a damper on demand.

Construction project completions in Honolulu in the second half of 2018 significantly cut the number of cranes in the city, where residential and mixed-use construction continue to dominate the market. In response to recent changes in the permitting process, hotel owners and developers are pushing their planned projects forward to accommodate the longer processing time, which may lead to an increase in the crane count toward the end of 2019. Hospitality remains a strong sector, with renovations outpacing new builds. Affordable- and market-rate multifamily high-rises continue to sell well, likely leading to more towers in the future.

SEE ALSO: 10 States with the Highest Gas Taxes

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 14 of 52

Idaho

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Population: 1,754,000

Unemployment rate: 2.9%

2019 job growth: 2.5% (18,600)

2020 job growth: 1.8% (13,600)

More tech firms are starting up or expanding in the Gem State. Businesses looking to escape the high costs of West Coast cities are often attracted to Boise, Idaho Falls, and other Idaho cities because of lower costs of living. Tech firms Paylocity and Clearwater Analytics have established operations in the area. Tech startups include Boise-based wireless company Cradlepoint with 500 employees, as well as House of Design, located in Nampa, with more than 50 employees designing, programming and assembling robots that can build products from medical equipment to shoes.

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Construction activity is going strong in Idaho, including a $150-$200 million expansion at Boise's busy airport, where passenger traffic is soaring now that it is one of the Mountain region's fastest-growing cities. Large-scale housing projects, including one in Syringa Valley for 2,000 new homes, are in the works to try to ease a shortage of housing. Boise housing prices have risen at a 15% annual rate in each of the past two years. In Boise, investment in public projects also is brisk, including an $80 million riverfront library.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 15 of 52

Illinois

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Population: 12,741,000

Unemployment rate: 4.0%

2019 job growth: 1.1% (67,600)

2020 job growth: 0.5% (30,900)

Illinois is posting a solid pickup in job creation this year, despite its longer-term fiscal problems. That partly reflects its continuing diversification toward more service-providing industries from manufacturing.

Illinois is home to 69 of the nation's top 1,000 companies by revenue, including Boeing and Abbott Laboratories as well as Caterpillar, which is in the process of hiring software developers, data analysts, telecommunications experts and computer engineers to expand its digital team. Most of the job growth is coming in office-using businesses, such as healthcare and professional services like accounting and legal advice.

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Chicago will get the bulk of the job gains with slower growth in areas outside the city. For example, Ford Motor Co. has invested $1 billion and added 500 employees at its Chicago-area stamping and assembly plants, and a $1.2 billion expansion is under way at Chicago's busy O'Hare international airport.

But there are problems within the Illinois economy that will make it difficult to sustain long-haul job gains. The trade rift between the United States and China hurts agriculture and commodities in general. Agricultural exports to China, especially of soybeans, make up a larger portion of total exports in Illinois than they do in almost any other state. Caterpillar, an important agricultural and mining machinery manufacturer in downstate Peoria, has also faced weaker demand from the reduced trade flows. In addition, Illinois faces a continuing loss of population, falling for a fifth year in a row during 2018 and at an accelerating pace that leaves it with an aging population and a decreased prime-age working force. Finally, the fiscal troubles of the state government and the City of Chicago have created a long-term uncertainty in the local business climate.

SEE ALSO: 12 Smart Places to Retire

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 16 of 52

Indiana

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Population: 6,692,000

Unemployment rate: 3.3%

2019 job growth: 0.9% (28,400)

2020 job growth: 0.6% (25,600)

Indiana has been a job machine in the Midwest, but is running into headwinds. While construction and healthcare are still growing strongly, a weakening manufacturing sector from the global trade slowdown is proving to be a drag that will likely last for a while. Indiana is one of the nation's most manufacturing-intensive states. The leisure and hospitality sector is also seeing weakness. Employment in the Hoosier State should grow 0.9% this year.

Indianapolis is a hub for state industry, attracting new high-tech businesses while established ones like Rolls-Royce intend to expand engine production at its existing plant and take on 150 more employees if it secures a key U.S. Air Force contract. Rolls-Royce is near completing a $600 million modernization of its Indianapolis operations where it would build engines for B-52 aircraft. Infosys plans to hire 3,000 workers by 2023. Just to the south, Amazon is constructing an $80 million distribution facility that will create up to 1,250 jobs. FedEx is in the middle of a seven-year expansion of cargo capacity at Indianapolis' airport, highlighting the area's central location.

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In the Northern part of the state, U.S. Steel is investing $750 million to revitalize its flagship plant at Gary, aiming to grab more market share because of higher costs that steel products from abroad will face as a result of tariffs. The Gary plant, on the southern shore of Lake Michigan, employs about 3,800 now and will undergo a five-year makeover that includes an expansion as well as installation of new production equipment and technology.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 17 of 52

Iowa

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Population: 3,156,000

Unemployment rate: 2.5%

2019 job growth: 0.7% (12,000)

2020 job growth: 0.8% (12,800)

Iowa employment should grow 0.7% this year. The largest metro Des Moines should see much of that growth, expanding 2.3% this year. With a state unemployment rate of only 2.5%, labor availability will be a problem in some areas of Iowa, especially Ames and Iowa City, the university towns. These two have unemployment rates of around 2%. Only Portland, Maine has an unemployment rate that is lower (1.7%).

Carleton is adding 150 manufacturing jobs in Davenport. Vertex software is adding 300 jobs in Ames, as it expands its headquarters. The state is big on renewable fuels: it is a center of biofuels research and the country's second-largest producer of wind energy.

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It has been a tough weather year for agriculture. Spring flooding destroyed millions of dollars of corn, soybeans and grain, and reduced planting. As a result, shorter supply boosted prices for a while. The trade war with China has hurt demand for U.S. soybeans and pork, and the economic slowdown in Mexico and Brazil's bumper corn crop this year has hurt demand for U.S. corn.

SEE ALSO: 5 States With No State Sales Tax

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 18 of 52

Kansas

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Population: 2,912,000

Unemployment rate: 3.2%

2019 job growth: 1.0% (14,200)

2020 job growth: 0.7% (10,100)

Growth in Kansas will downshift a bit, with job gains of 1.0%. Its unemployment rate, though very low at 3.4%, is up a bit this year. Rural areas are still hurting from agricultural price declines, and Kansas' population and labor force are barely growing. The Wichita metro area will do the best, as Wichita's aviation industry (Cessna, Beech, Bombardier, Spirit) continues its strong growth. Textron Aviation will add 1,000 workers this year. Airbus' increased A320 production will benefit Spirit, a Wichita company that makes wing parts for the A320. Spirit's work on Boeing 737MAX fuselages continues for now, but is likely to be interrupted in the near future as the grounding of the MAX continues with no end in sight.

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Wheat is having a good year. Lower U.S. stocks is likely to be beneficial for Kansas wheat farmers. But a more difficult trade environment will still present challenges to exporters. A new beef processing facility in Arkansas City will employ 250.

Kansas' economy needs greater diversity. Its reliance on agriculture and aerospace mean that it is susceptible to the variabilities of weather and global demand.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 19 of 52

Kentucky

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Population: 4,468,000

Unemployment rate: 4.4%

2019 job growth: 1.1% (21,300)

2020 job growth: 0.8% (15,700)

Kentucky will almost double its pace of job creation in 2019, to 1.1% from 0.6% in 2018. Lexington, Bowling Green, and the Cincinnati metro area will outpace the state average.

Kentucky is an important automotive state, and that sector is firing on all cylinders currently, including an addition of 550 employees at Ford Motor Co.'s Louisville truck plant to meet demand for big SUVs. More investment by automakers ripples out to suppliers, with components supplier Piston Automotive LLC spending $1.5 million to expand its Louisville operations and add 50 full-time jobs. Foreign automakers are pushing back against the risk of import or other restrictions against them, hedging their bets by boosting investment in southern states particularly. For example, Toyota will spend $238 million to set up production lines at its Georgetown plant to make hybrid vehicles, part of a combined $749 billion investment bonanza it is showering upon Kentucky, Alabama, West Virginia, Tennessee and Missouri.

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Braidy Industries is partnering with a Russian company, Rusal, to build an aluminum rolling mill in Ashland, in eastern Kentucky, that will create 650 permanent and 1,000 construction jobs. Braidy is investing $1.6 billion and will be the lead investor in the mill while Rusal will supply low-carbon aluminum for it.

SEE ALSO: 10 States With the Highest Sales Taxes

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 20 of 52

Louisiana

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Population: 4,660,000

Unemployment rate: 4.3%

2019 job growth: 0.1% (2,000)

2020 job growth: 0.2% (4,000)

Job growth is good in New Orleans and Lafayette, but almost non-existent elsewhere in the state. Employment in Louisiana will rise by only about 0.1% this year, down from even last year's lackluster pace, as the pace of hiring moderates in sectors including health services and tourism. The oil sector has been in a slump for years. Construction employment is still falling, though there are a few projects getting under way that will improve prospects later this year. Federal regulators have approved the Calcasieu Pass LNG export facility and TransCameron Pipeline, which will create about 1,500 jobs during peak construction and 130 permanent jobs.

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Louisiana also is affected by the Trump administration's tariffs against China and mounting trade tensions with Europe. The ports of New Orleans, South Louisiana and Baton Rouge handle a significant portion of total U.S. trade with the rest of the world, including 60% of grain exports from the Midwest.

Activity is picking up on industrial projects in the Baton Rouge area, including ongoing work by Shintech Inc. on a $1.5 billion project that includes an ethane cracker as well as Shell's planned $717 million alpha olefins plant in Geismar, which will boost job growth later this year and in 2020.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 21 of 52

Maine

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Population: 1,338,000

Unemployment rate: 2.9%

2019 job growth: 0.8% (5,000)

2020 job growth: 0.5% (3,200)

Maine's growth is hindered because it is running out of workers. It is one of the few states where deaths outnumber births. Ample job opportunities have attracted more domestic migrants over each of the past two years, which is a help for employers. But in a sign of how acute worker shortages have become, some firms have hosted job fairs for seniors, and state lawmakers have been pushing Washington for increases in the number of visas for foreign workers. Tourism remains strong, but that industry has difficulty attracting and keeping employees in low-paying jobs. Manufacturing is on an upswing, a good thing for the state since it provides higher-paying and permanent jobs. Defense industries are leading the way, with General Dynamics' subsidiary Bath Iron Works landing contracts to maintain and modernize destroyers and other combat ships.

SEE ALSO: 6 Great Places to Retire in New England

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 22 of 52

Maryland

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Population: 6,043,000

Unemployment rate: 3.8%

2019 job growth: 0.3% (8,300)

2020 job growth: 0.5% (13,800)

Maryland will barely add to its workforce this year, with employment up by about 0.3%. The strongest job growth in the state has been in the City of Baltimore, while job growth has almost disappeared from the Maryland side of the D.C. suburbs.

Given the low unemployment rate, state officials already report difficulty finding workers to fill some jobs, including in technology and nursing. Maryland is aiming to leverage a special strength arising from its dominant position as a center for cybersecurity interests. It can draw upon highly experienced experts from the National Security Agency, Defense Information Systems Agency, Department of Defense Cyber Crime Center and other classified agencies. As part of a longer-term growth strategy, Maryland is building a cybersecurity hub at Port Covington, an area of Baltimore, that is to act a magnet center for cybersecurity firms when it is completed in 2020. Hiring is brisk in healthcare as business services as well as among construction industries, where various infrastructure improvement projects are under way including a $9 billion expansion of interstates 495 and 270.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 23 of 52

Massachusetts

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Population: 6,902,000

Unemployment rate: 2.9%

2019 job growth: 1.0% (36,500)

2020 job growth: 0.7% (25,900)

Massachusetts is a perennial regional leader because it draws more talented young workers than its neighbors, attracted by good-paying jobs in high-tech and financial-services sectors that are clustered in centers like Boston. High tech will remain a key engine for growth, benefiting from top-ranked universities including Harvard and Massachusetts Institute of Technology as well as a thriving start-up scene. New ventures are launching in varied fields from education to healthcare and accounting, backed by readily available venture-capital financing that swelled by an estimated 46% to $10 billion last year.

Biotech and pharma companies are expanding operations in the state. Foundation Medicine is looking for space, and Irish pharmaceutical giant Allergan as well as Danish drug giant Novo Nordisk are opening research operations. Some of the biggest names in tech including Verizon, Google and Apple are expanding and intend to create thousands more jobs. Amazon has added 2,000 employees in Boston and plans to expand its distribution network, bringing in 1,500 to North Andover.

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But there also are a few misses: struggling conglomerate General Electric is scaling back its plans for a new 12-story office building in Boston's Seaport district. Housing is a challenge but should get a modest lift from the Federal Reserve's more patient outlook on interest rates and lower mortgage costs, plus there are an estimated 20,000 apartments under construction in the Boston area to relieve some pressure on one of the region's hottest housing markets.

Outside of Boston, job growth in Springfield has jumped up this year as the area becomes a transportation hub and expands in healthcare.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 24 of 52

Michigan

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Population: 9,996,000

Unemployment rate: 4.2%

2019 job growth: 0.4% (17,700)

2020 job growth: 0.2% (9,000)

Michigan will be the only Midwestern state to see slower job growth in 2019 than in 2018: 0.4%, down from 0.9%. The motor vehicle sector continues to be the prime driver for Michigan's economy, so the state's outlook closely tracks prospects for new-car sales, which are leveling off after several strong years. The slowdown in exports is also contributing to the modest growth.

Otherwise, the outlook remains positive for Michigan with Fiat Chrysler Automobiles planning to spend $4.5 billion to update several Detroit-area plants and retool an engine plant to make Jeeps, which will create about 6,500 jobs. General Motors, which took a beating from the Trump administration for closing a big plant in Lordstown, Ohio, is pumping $300 million into its Orion assembly plant in the Detroit suburbs to build a new electric car. Self-driving vehicle company Waymo is looking for a location in southeastern Michigan where it will make about a $13.6 million investment in a plant to transform vehicles into autonomous cars for Waymo's ride services business. All of the industrial activity is giving the state's construction and manufacturing sectors a lift, while retailer Amazon pushes forward with its rapid expansion which has included an announced $420 million investment in Michigan and addition of nearly 5,000 jobs over the past year and a half.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 25 of 52

Minnesota

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Population: 5,611,000

Unemployment rate: 3.3%

2019 job growth: 0.4% (11,800)

2020 job growth: 0.7% (32,500)

Minnesota boasts the strongest in-migration rate of the entire region, as folks are drawn to the Minneapolis metro area, the largest in the region. As a result, labor-force growth is one of the healthiest. However, job growth downshifted to 0.7% last year after seven years of strong growth, and the unemployment rate has bumped up from a very low 2.9% to 3.3% so far this year. Job growth in 2019 is likely to be a modest 0.4%, but then pick up some in 2020.

The need for housing and other expansion has kept construction strong, but other sectors have weakened, such as the food manufacturing sector (Cargill) and nondurable manufacturing (3M). Transportation and warehousing is no longer a growth sector. Hiring has slowed in health care, a major industry, though the famed Mayo Clinic in Rochester continues mostly unaffected.

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In December, Minneapolis became the first U.S. city to ban new single-family houses in an attempt to spur multifamily housing development and bring down housing costs.

SEE ALSO: 20 Great Places to Retire Near the Mountains

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 26 of 52

Mississippi

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Population: 2,987,000

Unemployment rate: 5.2%

2019 job growth: 1.4% (16,300)

2020 job growth: 0.8% (9,500)

Mississippi should see the fastest growth in four years this year. Growth is especially strong in the south-central part of the state (Jackson, Hattiesburg).

Global automakers continue to increase their footprint in Mississippi, which can be a positive or a negative for the state since the pace of hiring varies with the sales outlook. A generally strong sales outlook is in place for this year, boosting the manufacturing sector so that overall employment is on an upswing. Hiring will grow by about 1.0%, well ahead of 2018's slim 0.3% gain. Toyota Motor Co. has just started turning out a new generation of its Corolla compact car from its Blue Springs plant. Toyota added 400 new employees at the plant and now has a workforce of about 2,000 in the state. Tiremaker Continental AG of Germany is building a $1.4 billion plant in the central part of Mississippi to make truck tires and will have about 250 employees on staff by the end of the year. On the downside, slower sales for trucks and vans was cited by Nissan Motor Co. for its decision to lay off about 700 contract workers in the state. Nissan has been under pressure because of the ouster of its chairman, Carlos Ghosn, after charges were brought against him by the Japanese government.

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Other than manufacturing, the sector doing best in terms of job creation is leisure and hospitality, drawing tourists to its scenic Gulf Coast with an array of attractions from beaches to casino tours. Mississippi also has deepwater ocean ports and a substantial shipbuilding industry serving the military that is a source of strength. Huntington Ingalls Industries in Pascagoula recently received a $1.47 billion contract from the U.S. Navy for a new ship that will keep the shipyard busy.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 27 of 52

Missouri

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Population: 6,126,000

Unemployment rate: 3.2%

2019 job growth: 1.2% (34,700)

2020 job growth: 0.8% (23,400)

Missouri will do much better than last year, with 1.2% growth versus 2018's 0.2%. Kansas City and St. Louis will carry most of the heavy lifting, and the southwest corner of the state around Springfield and Joplin is seeing strong growth in manufacturing and transportation.

The unemployment rate will stay around 3.3%, a slight uptick from last year. Missouri's labor force is finally growing again after two straight years of decline, though population growth remains a problem.

Scollar, a smart pet collar company, joined the exodus from Silicon Valley in California and relocated to Kansas City, adding to the city's Animal Health corridor. Heartland Dental will create up to 100 jobs at a new office in St. Louis. Pfizer is investing $200 million for a new plant in Chesterfield near St. Louis. In the central part of the state, Aurora Organic Dairy is opening up a new milk bottling plant in Columbia that will employ 100. Quaker Windows is adding 300 manufacturing jobs in Eldon.

SEE ALSO: 12 Great Small Towns for Retirement

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 28 of 52

Montana

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Population: 1,062,000

Unemployment rate: 3.3%

2019 job growth: 1.2% (5,800)

2020 job growth: 0.7% (3,400)

Most Montana job growth is coming from services including an expanding high technology sector, tourism and health care. This is despite the state being most well-known for its abundant natural resources (oil, coal, copper, logging and agriculture). Overall, high-tech businesses added 1,300 jobs in 2018 and expect to boost payrolls by 1,700 this year. Urban centers including Bozeman, Billings, Missoula, Kalispell and Helena are seeing the greatest hiring pickup, while rural areas feel the pinch from lower prices for key agricultural crops like wheat and worry that a U.S.-China trade war will worsen and affect more crops.

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Montana has substantial reserves of coal, but chances for growth from mining it are slim as coal's use for generating electricity declines. Westmoreland Coal Co. has emerged from bankruptcy and is the owner of the Rosebud mine that feeds the Colstrip power plant in Montana. Westmoreland is supplying coal to Colstrip through the end of this year, but it's unclear what will happen after that, and Colstrip is searching for a new coal source. There is one potential positive development in the mining sector: a new limited-life copper mine is proposed in White Sulphur Springs that, if approved, will employ about 200 people over its 15-year life.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 29 of 52

Nebraska

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Population: 1,929,000

Unemployment rate: 3.1%

2019 job growth: 0.6% (6,100)

2020 job growth: 0.7% (7,200)

Job growth will mostly be in the Omaha area this year, where there is strong growth in construction, professional and business services, and warehousing. Stalwarts Mutual of Omaha, Warren Buffett's Berkshire Hathaway, and Conagra are also in Omaha. The rest of the state is languishing at the moment because it's been a tough year for Nebraskan agriculture: widespread flooding in March caused $1 billion in damages to infrastructure, crop and livestock losses. The trade war with China has also dampened prospects. Livestock, corn, soybeans and sorghum are the main agricultural products.

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Carson Group investment advisors will build a new headquarters in Omaha for 300 workers. Google will build a data center in Sarpy County near Omaha, becoming the fifth company to do so. Merck is also expanding in Omaha. A new manufacturing plant employing 100 will go up in Seward, west of Lincoln.

SEE ALSO: 50 Best Places to Retire in the U.S.

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Kiplinger Economic Outlook for All 50 States 2020 | Slide 30 of 52

Nevada

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Population: 3,034,000

Unemployment rate: 4.1%

2019 job growth: 3.0% (42,400)

2020 job growth: 2.0% (29,200)

Full speed ahead for Nevada's thriving economy, gaining momentum in the south from a continuing Las Vegas construction boom. East of Reno, electric-car maker Tesla and partner Panasonic are building out a multi-billion-dollar plant called the Gigafactory that makes batteries and parts for Tesla's Model 3. It currently has 10,000 employees, but plans for further expansion may depend on the success of the Model 3.

Nevada is a standout regionally and nationally with payrolls set to grow 3.0% this year. Hiring for construction is soaring, so much so that employers are having trouble finding skilled workers they need with some $23 billion worth of projects under way in Las Vegas alone. Work is just starting on a $1 billion Circa Resort and Casino in the downtown area while Malaysia-based Genting group is building its $4 billion Resorts World Las Vegas that will add 7,000 hotel rooms. It's emerging as a major sports center with a successful professional hockey team, while a $2 billion football stadium is under construction that will be the future home of the Las Vegas Raiders from the start of the 2020 NFL season onward.

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A healthy national economy is a boon for the gaming industry and for tourism in Las Vegas, with free-spending visitors fueling about 30% of the local economy. So far, visitor volume is 2% above last year. Housing markets in Las Vegas and Reno are healthy, partly because the state's desert climate and low taxation rates make it an attractive destination for retirees, including many fleeing nearby high-tax states like California. A surge in home building is beginning to ease the supply crunch a little, and double-digit housing price growth for over a year has slipped back into the single digits again.

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