Estimated read time: 5-6 minutes
Utah is no stranger to high praise, but 2023 brought one of the highest honors a state can receive. In May, U.S. News & World Report gave Utah the top spot in its Best States ranking. This award came after careful analysis of more than 70 different metrics across eight categories, including economy, fiscal stability, health care and crime and corrections.
"The strengths of what Utah offers its residents, particularly in areas like the economy and education, are why it was ranked the No. 1 state in America in U.S. News & World Report's Best States rankings for 2023," Elliott Davis Jr., writer for U.S. News & World Report said.
Regarding the ranking, Utah State Senate President, J. Stuart Adams said, "Our state's persistent focus on strengthening our economy and empowering citizens to reach their greatest potential is the reason Utah ranked the best state overall … I am excited our state was named No. 1 and look forward to maintaining the top spot for years to come."
Utah's economy has also been vaunted by other highly esteemed outlets, including Forbes. Over the past several years, Utah has ranked at the top or near the top for the country's best state for business. "The state has a very pro-business climate and companies benefit from energy costs that are 16% below the national average," Forbes.com reported.
Here are some of the reasons Utah's economy is the best performing in the nation.
Pro-business, pro-jobs
In a 2019 article written by Stephen Moore of the Wall Street Journal, he addressed the question of the top-performing economy head-on. Every year in their analysis of economic competitiveness, he and two other writers assemble their "Rich States, Poor States," rankings. Utah has been No. 1 in the rankings every year since 2008.
"How does Utah manage to remain so economically competitive? As a destination spot, the Beehive State has natural advantages … But the real secret to Utah's success is disarmingly simple: The state's politicians tend to do everything right to encourage business development and job creation," Moore wrote.
The state's frugal and savvy spending habits have also paid off for residents, too, as Utah was ranked as 2023's happiest state — even ahead of Hawaii — by WalletHub.com.
Phil Dean, the chief economist and public finance senior research fellow at the University of Utah's Kem C. Gardner Policy Institute emphasized to U.S. News & World Report that giving business leaders what they want, like a stable tax and regulatory structure, is essential to Utah's strong economic performance.
Culture, values and families
In a 2014 study conducted by Envision Utah, about one-third of Utah participants reported the following values they prize most about their communities:
- Friendly neighbors with shared values
- Safe environment to raise children
- Overall sense of community
- Promoting peace and personal security
Not only do Utahns value community, but the state ranks well for these values, too. In the 2018 Social Capital Index published by Congress's Joint Economic Committee, Utah ranks No. 1 in three categories: family unity, social support and philanthropic health.
Perhaps Utah's strong families contribute to other metrics like student reading scores. In 2022, the Department of Education released The Nation's Report Card report. Utah eighth-grade students scored six points higher in reading than the nationwide average.
Steady and strong
Utah's booming economy is catching on around the country, as more people find success in starting and growing their businesses in the Beehive State.
"Throughout the past 15 years, the state has had a strong economic track record, but Utah is just getting started," Stuart Adams wrote for the Deseret News. "Not only has Utah been ranked the state with the best economic outlook, but it is also the fastest-growing state in the nation, has the fastest growing GDP and historically low unemployment at 2%. Utah is just scratching the surface of what it can accomplish."
A 2023 study conducted by WalletHub found Utah is the best place to start a business, especially for small businesses. A 2021 report found 12,513 small businesses opened in the Beehive State in 2021. Of those opened and closed that year, it was a net positive.
Additionally, Utah's economy is the fifth most diverse in the nation, according to the 2023 Economic Report to the Governor. Essentially, the number of different industries in the state is higher than most.
Trade, manufacturing, information, financial activities, professional and business services, and leisure and hospitality were the top contributors to Utah's gross domestic product in 2021. Of course, other industries, such as agriculture, are a big part of the state's thriving economy.
For Utah's economy to stay the best in the nation it will take a concerted effort of everyone working together on the upcoming challenges and opportunities.
If you are interested in learning more about our economy and policy efforts to keep us a top-performing state, attend the Salt Lake Chamber and Kem C. Gardner Policy Institute's Utah Economic Outlook & Public Policy Summit on January 12, 2024.
