September 24, 2024 | Research
Economy

Red States Are Outperforming Blue States

Research

New Data Confirms That States With Republican Leadership Are Seeing More Jobs And Lower Unemployment


REPUBLICAN-LED STATES ARE BRINGING BACK JOBS FASTER

  • Newly released data from the Labor Department confirms that Republican governors and legislatures are leading the post-pandemic economic recovery.
  • Through August, 16 of the top 20 states for jobs recovered since the coronavirus pandemic began are led by Republican governors, and 16 of the states have Republican-controlled legislatures.
    • Out of the top 10 states with the least jobs recovered, eight are Democrat-led.
  • Republican-led states on average have recovered 143 percent of their lost jobs compared to just 118 percent for Democrat-run states.
    • Four states have fewer jobs than before the pandemic – two of which have Democrat governors and one of which only recently flipped Republican.

(Bureau Of Labor Statistics, Accessed 9/20/24)

RED STATES HAVE LOWER UNEMPLOYMENT RATES

  • Out of the top 15 states with the lowest unemployment rates, 11 are led by Republican governors.
    • Of the 10 states with the highest unemployment rates, seven are led by Democrat governors.
  • The average unemployment rate for the nation’s 27 states with Republican governors is just 3.4 percent.
    • The average unemployment rate for the nation’s 23 states with Democrat governors is a half a percentage point higher – 3.9 percent.
  • Three states – Tennessee, Mississippi, and Arizona – reached a new record low unemployment ratein 2024, all of which have Republican-controlled legislatures.

(Bureau Of Labor Statistics, Accessed 9/20/24)

REPUBLICAN-LED STATES OUTPERFORM BLUE STATES

  • Republican-led states are outperforming blue states on key economic measures showing the stark difference Republican leadership has made in driving the post-pandemic economic recovery.
  • New data from the IRS confirms that Democrat policies are driving Americans out of their states.
    • Republican-led states, including Florida, Texas, and South Carolina, were the top gainers of taxable income as taxpayers fled from Democrat states like California, New York, Illinois, and New Jersey.
  • Four of the five cities with the greatest population gains since 2020 have been in states where Republicans have total control of state government, including Dallas, Houston, Atlanta, and Austin.
    • The five cities with the largest population decline are where Democrats control the state government, including New York, Los Angeles, Chicago, San Francisco, and San Jose.
  • Business income in Republican-led states has outpaced business income in Democrat-led states since the start of the pandemic.
    • Business income has risen by 8.5 percent in Tennessee, 7.6 percent in Florida, 4.1 percent in Texas, 1.6 percent in California, 1.2 percent in New York, and 0.3 percent in New Jersey.
    • Business income actually decreased by 0.6 percent in Illinois during the same period.
  • Republican-led states also outperformed blue states on reopening schools for in-person learning, and studies have proven remote learning caused the academic decline during the pandemic.
  • The latest report from the Bureau of Economic Analysis found that 10 of the top 15 states with the highest real GDP growth in the first quarter of 2024 have Republican governors.