States That Produce The Most Jobs (Not What You Think)

top states jobs

Overall payroll growth remains subpar and disappointing, but these states, including a few surprise ones, are showing healthy and diverse growth.

For many, the economic recovery won't be real until there's solid job creation every month. Though the pace of hiring picked up in 2011-2012, recent months have been disappointing. June payroll data released July 6 were no different. The economy created 80,000 jobs during the month, below economists' forecasts. Still, in the 12 months between CNBC.com's 2011 and 2012 Top States for Business, the economy has created 1.8 million jobs -- by far the most since the 2006-2007 period. A third of the new jobs has been concentrated in 10 states. Five states -- Alaska, Maine, Mississippi, Rhode Island and Wisconsin -- have lost jobs in the 12 months. (Delaware payrolls were flat.)

The list of top 10 job-producing states does not include all of the most populous ones in the nation. In fact, a couple on the list are in the bottom half of population totals. Some on the list are clearly part of a surprising manufacturing rebound, while a couple are benefiting from the robust energy sector. Virtually every state lost jobs in one or more of the Bureau of Labor Statistics' 11 sectors. (Construction and government were two widespread losers.)

Look ahead to see the top 10 job-generating states as well as which sectors and companies are contributing to the growth.


1.Texas -- Net Job Creation: 237,500

The Texas economy grew at twice the state average, which may explain why the state posted job growth in all but one of the private sector categories -- and that one, information, was almost flat. The big job loser was government; the 50,000-decline in payrolls was second only to California. Texas also led the nation in new mining and logging jobs, reflecting the strong energy sector. Houston -- home to ExxonMobil, ConocoPhillips, BakerHughes and Schlumberger, among others -- led the state in job creation for the third year in a row.
  • Trade, Transportation, Utilities: 53,200
  • Education & Health Services: 50,500
  • Professional & Business Services: 43,500


2. California -- Net Job Creation: 211,500

California managed to create jobs in all but two private-sector categories (manufacturing and general services) along with its solid growth rate. Gains in construction and financial activities partly reflect its improving real estate sector. High tech, tourism and international trade are the leading sectors. The state led the nation in job creation in June. Facebook and Zynga both went on hiring binges in the last year.

On the negative side, as might be expected of a cash-strapped state, government payrolls fell by almost 60,000.
  • Professional & Business Services: 90,800
  • Education & Health Services: 48,800
  • Trade, Transportation, Utilities: 42,000


3. New York -- Net Job Creation: 135,000

Most of the state's job creation came from two sectors, offsetting declines in several others (information, construction, government, manufacturing). Despite subpar overall economic growth, New York was one of several states to benefit from a later-than-usual bounce in service jobs. Payrolls in New York City rose 2.4 percent in the past 12 months, fifth best among the state's top metro areas. The city has been experiencing a wave of IT startups, such as Foursquare and Tumblr, which have been generating jobs.
  • Professional & Business Services: 58,500
  • Education & Health Services: 33,800
  • Trade, Transportation, Utilities: 21,700


4. New Jersey -- Net Job Creation: 50,700

Even though New Jersey was one of a handful of states to have negative GDP in 2011, its economy cranked out jobs just the same. May was the best month in seven years. The state's white-collar sector was weak, with payrolls down in the information and flat in financial activities, partly because of Wall Street layoffs. New Jersey also had one of the largest increases in education and health services.

The state has one of the highest concentrations of S&P 500 companies, including ADP, Honeywell and Merck.
  • Education & Health Services: 28,000
  • Trade, Transportation, Utilities: 12,300
  • Leisure & Hospitality: 9,300


5. Florida -- Net Job Creation: 50,300

Florida's job growth was evenly concentrated in three areas while traditional economic engines didn't fare as well. Even as the state showed signs of emerging from a deep real estate slump, construction payrolls plunged. In addition, the important leisure and hospitality sector showed a small gain. Economic growth was well below average. Florida, home to AutoNation, CSX, Darden Restaurants and Jabil Circuits, is currently offering economic incentives to big and small companies looking to add jobs through expansion or new facilities.
  • Trade, Transportation, Utilities: 25,600
  • Professional & Business Services: 25,200
  • Education & Health Services: 20,200

See the rest of this list on CNBC.



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38 Comments

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Mad Dog

All states where nobody wants to live because the cost of living there is out of sight. Give me a real job and you can keep your benefits because the Left will provide everything you need but a real life.

July 15 2012 at 6:34 PM Report abuse +1 rate up rate down Reply
1 reply to Mad Dog's comment
F4flyr

'States where nobody wants to live'?...Texas was, is, and will be for some time to come, the cheapest state to live in...no state income tax, our own electric grid, plenty of land to grow on, no business taxes to even mention, lowest 'startup costs' for new companies, generous tax breaks to relocate here, lowest energy costs anywhere ( gas was headed to $3.00 last I checked ), the energy industry built this state, and maintains it, too ( don't remember seeing a pothole in 50 years ), and if you don't know about Austin, well, pilgrim, keep driving to Florida...too many catching on and throwing down here as it is...I met a Yankee the other day who wondered if the whole state was a desert...took him down to Lake Travis and that was the end of that...he didn't know there are more lakes here than any state except Minnesota...'Austin City Limits', 'live music capital of the world', home of Dell Computer and top five hi-tech companies, a huge 'film industry' etc, etc,...sorry dog, but Texas is where the 'stars at night are big and bright'...still.

July 31 2012 at 6:34 PM Report abuse rate up rate down Reply
James

Texas is no surprise at all. Companies are flocking there to avoid government regulations and Taxes... What is surprising is that California is in the top 10 much less number two...

July 15 2012 at 4:37 PM Report abuse +2 rate up rate down Reply
1 reply to James's comment
F4flyr

James...agreed...I left CA when somebody sold a mobile home on a cliff for 1.2 million...mid to late 90s saw real estate go viral...which means the 'first burst' of the housing bubble pushed a lot of folks into bankruptcy, then forclosure, then living in their car...the 'second burst' will be even more critical...our inflated real estate market made us think there was no end in sight and the sale price for our 2BR/2BA/carport home would make us rich...my daughter bought a 1/4 mill house just north of San Antonio with size and amenities that would make it sell for a mill and a half in CA...we are simply coming back down to earth is all...we need jobs for the 21st century...we can't take each other's garbage out as our sole means of support...luckily the younger generation has the same 'vision of the future' that our great-grandfathers had...we get thru this patch and we'll lead the world into prosperity like we did 100 years ago.

July 31 2012 at 6:59 PM Report abuse rate up rate down Reply
js102456

dont belive it

July 12 2012 at 5:33 PM Report abuse +1 rate up rate down Reply
mauerdeb

The only thing is they dont report the amount of jobs lost.

July 12 2012 at 2:16 PM Report abuse +2 rate up rate down Reply
Watts Up!

See! CA is not doing so bad after all. We're in second place, yes!!! I wish the best for the rest of the brother states, though. Peace!

July 12 2012 at 1:51 PM Report abuse +2 rate up rate down Reply
eilleene

sure those non union positions pay low minimum wages n fire people instead of giving them a raise...thats why there r job opening ALL the time ALL year long....they have no retirement, no on the job or off the job injury medical benifits....i dont know noone in the republican run states who is workin that doesent have at least 2 minimum wage jobs...they get stuck & burn out, unable to buy a bus ticket to go on vacation.....they want u to work till u drop dead in your 70s...i am glad i left tex and florida i came to wash state n retired with benifits for the rest of my life....thats my reward for makin a company .....thank you UNIONS!!!!....i feel sorry for those people in republican states....

July 12 2012 at 1:01 PM Report abuse +3 rate up rate down Reply
1 reply to eilleene's comment
James

Pessimist?

July 15 2012 at 4:38 PM Report abuse -1 rate up rate down Reply
Christopher

new york state has created 1000's and 1000's of welfare jobs and political ( favors ) jobs

SCOTT WALKER PLEASE HELP US ALL !

July 12 2012 at 12:51 PM Report abuse -3 rate up rate down Reply
1 reply to Christopher's comment
yankeedoug1121

walker won't. but you can have rick scott the criminal from florida he's a clown and should be in jail !

July 15 2012 at 5:29 PM Report abuse +2 rate up rate down Reply
kathl

Maybe next time they'll have an article about the states with jobs that pay well and have decent benefits!

July 12 2012 at 12:17 PM Report abuse +5 rate up rate down Reply
kathl

No surprise the largest states have the most jobs......

July 12 2012 at 12:15 PM Report abuse rate up rate down Reply
gofish818

No surprise that Texas is leading in job creation. No surpise that Houston...home to Exxon Mobil and Conoco Phillips...is leading the state. See that Mr President? Big bad evil oil is supplying the jobs.

July 12 2012 at 12:01 PM Report abuse -1 rate up rate down Reply
2 replies to gofish818's comment
Walt

AT WHAT COAST TO THE FUTURE, THESE THINGS ARE WAY BEYOND YOUR PAY GRADE.

July 12 2012 at 1:42 PM Report abuse +2 rate up rate down Reply
yankeedoug1121

yeah and destroying the earth at the same time always will !

July 15 2012 at 5:30 PM Report abuse +1 rate up rate down Reply

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