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Washington State News

10-Year Study Ranks Washington State No. 1 for Most Improved Labor Productivity

Photo by Tim Gruver/The Center Square

(The Center Square) – Washington state has seen the largest increase in labor productivity over the last 10 years, growing by 30.31% since 2012, according to a new analysis by digital-adoption.com, a company that helps organizations leverage new technology in the virtual post-COVID-19 world.

The research, conducted by digital-adoption.com, was based on examining 10 years of annual labor productivity data from the U.S. Bureau of Labor Statistics to establish which of the 50 U.S. states and the District of Columbia saw labor productivity – the private nonfarm sector – improve the most over the last decade.

The Evergreen State’s top ranking was largely due to increased output per worker, which is currently 29.7% higher than in 2012. That was the largest improvement of any state in the study.

Last year saw the largest increase in Washington’s productivity, which went up 6.4% at a time when businesses were navigating the impacts of the pandemic. It was the best post-pandemic improvement in the U.S.

Hourly compensation in Washington increased 9.2%, up from $55.71 per hour worked in 2020 to $60.82 in 2021. Value-added output rose by 11.9%.

There was more good news for Washingtonians in the form of workers having received the third highest increase in labor compensation in the country, growing from a total of $171.28 billion in 2012 to $307.47 billion in 2021 – an increase of nearly 80%.

Mike Faulk, spokesperson for Gov. Jay Inslee, said the results of the study validate what Washingtonians already know.

“Washington state is the best place to work and do business, as this reminds us,” he said.

Another Pacific Northwest state also cracked digital-adoption.com’s top 10 list.

Oregon came in at No. 10, with an increase of 16.75% in productivity. The state’s value-added output increased by 56%, the eighth-highest over 10 years compared to other states.

The top 10 states in terms of labor productivity over 10 years:

1. Washington, 30.31%

2. California, 21.47%

3. Kansas, 19.85%

4. Colorado, 18.74%

5. New Hampshire, 18.39%

6. North Dakota, 18.28%

7. Massachusetts, 17.25%

8. Utah, 16.95%

9. Nebraska, 16.86%

10. Oregon, 16.75%

The bottom 10 states in terms of labor productivity over 10 years:

51. Alaska, -8.31%

50. Delaware, -2.19%

49. Nevada, -1.55%

48. Wyoming, -0.41%

47. Louisiana, 0.64%

46. Mississippi, 2.68%

45. Rhode Island, 3.04%

44. Alabama, 3.74%

43. Arkansas, 3.75%

42. Kentucky, 3.94%