The United States has a diverse and vibrant economy. Every state has its own culture and distinct advantages that contribute to economic output. Some places have climactic or geographic features conducive to specific industries, such as agriculture or energy. Others have industries driven by research and development or tourism. Understanding this dynamic is crucial in predicting future growth trends in all areas of the country. It is also highly relevant when looking for employment and careers by region.
When considering the job market throughout the United States, certain positions are considered essential in each state. Educators, food service workers, and government employees are just a few examples. However, it is important to remember that states have their own distinct characteristics and specializations; these can be found in many industries, with certain jobs being more common based on a state’s geographic, demographic, and industrial composition.
Generally speaking, the largest industry in a state can yield the most jobs and the best pay. It is also a good indicator that a career within that industry will be stable. For example, if you are pursuing a life-long career in agriculture or farming, Idaho may be the best state to reside in. But if you want to work in technology, California has some of the best paying jobs in that sector.
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Here are the largest industries in each state with employment numbers and average salaries. The information within was gathered from the U.S. Department of Commerce’s Bureau of Economic Analysis and 247wallst.com.
*Note – Real estate, on average, is the largest industry in most US states. We listed industries outside of real estate for this list.
Alabama – Ambulatory healthcare services
Persons employed: 97,260
Average salary: $62,926
Alaska – Oil and gas extraction
Persons employed: 3,522
Average salary: $224,827
Arizona – Ambulatory health care services
Persons employed: 165,710
Average salary: $62,128
Arkansas – Management of companies and enterprises
Persons employed: 34,785
Average salary: $115,048
California – Computer and electronic product manufacturing
Persons employed: 278,416
Average salary: $183,992
Colorado – Oil and gas extraction
Persons employed: 8,555
Average salary: $184,211
Connecticut – Insurance carriers and related activities
Persons employed: 57,425
Average salary: $141,430
Delaware – Insurance carriers and related activities
Persons employed: 5,595
Average salary: $86,134
Florida – Ambulatory health care services
Persons employed: $501,127
Average salary: $63,459
Georgia – Broadcasting and telecommunications
Persons employed: 53,343
Average salary: $102,386
Hawaii – Accommodation / Hospitality
Persons employed: $41,976
Average salary: $50,431
Idaho – Agriculture / Farms
Persons employed: 18,915
Average salary: $36,533
Illinois – Insurance carriers and related activities
Persons employed: 116,559
Average salary: $98,414
Indiana – Chemical manufacturing
Persons employed: 29,998
Average salary: $117,903
Iowa – Insurance carriers and related activities
Persons employed: 44,595
Average salary: $83,175
Kansas -Insurance carriers and related activities
Persons employed: 24,743
Average salary: $74,040
Kentucky – Ambulatory health care services
Persons employed: 87,157
Average salary: $65,821
Louisiana – Petroleum and coal products manufacturing
Persons employed: 12,030
Average salary: $129,640
Maine – Hospitals
Persons employed: 33,157
Average salary: $61,777
Maryland – Ambulatory health care services
Persons employed: 146,656
Average salary: $65,696
Massachusetts – Ambulatory health care services
Persons employed: 190,498
Average salary: $67,026
Michigan – Ambulatory health care services
Persons employed: 206,999
Average salary: $60,201
Minnesota – Ambulatory healthcare services
Persons employed: 155,995
Average salary: $74,847
Mississippi – Ambulatory healthcare services
Persons employed: 50,206
Average salary: $58,038
Missouri – Ambulatory healthcare services
Persons employed: 118,237
Average salary: $63,966
Montana – Hospitals
Persons employed: 25,047
Average salary: $62,957
Nebraska – Agriculture / Farms
Persons employed: 12,211
Average salary: $40,346
Nevada – Accommodation / Hospitality
Persons employed: 190,356
Average salary: $40,760
New Hampshire – Insurance carriers and related activities
Persons employed: 11,870
Average salary: $87,686
New Jersey – Ambulatory healthcare services
Persons employed: 236,887
Average salary: $62,348
New Mexico – Oil and gas extraction
Persons employed: 4,132
Average salary: $108,769
New York – Monetary Authorities- central bank, credit intermediation, and related services
Persons employed: 164,781
Average salary: $153,307
North Carolina – Monetary Authorities- central bank, credit intermediation, and related services
Persons employed: 89,604
Average salary: $105,480
North Dakota – Oil and gas extraction
Persons employed: 2,616
Average salary: $134,604
Ohio – Insurance carriers and related activities
Persons employed: 109,185
Average salary: $77,914
Oklahoma – Oil and gas extraction
Persons employed: 18,001
Average salary: $147,769
Oregon – Computer and electronic product manufacturing
Persons employed: 37,928
Average salary: $135,938
Pennsylvania – Broadcasting and telecommunications
Persons employed: 35,146
Average salary: $88,266
Rhode Island – Insurance carriers and related activities
Persons employed: 9,084
Average salary: $85,307
South Carolina – Ambulatory healthcare services
Persons employed: 95,109
Average salary: $61,990
South Dakota – Monetary Authorities- central bank, credit intermediation, and related services
Persons employed: 16,363
Average salary: $61,357
Tennessee – Ambulatory health care services
Persons employed: 152,061
Average salary: $65,089
Texas – Oil and gas extraction
Persons employed: 75,435
Average salary: $191,717
Utah – Monetary Authorities- central bank, credit intermediation, and related services
Persons employed: 39,226
Average salary: $66,837
Vermont – Ambulatory health care services
Persons employed: 17,520
Average salary: $57,371
Virginia – Ambulatory health care services
Persons employed: 185,513
Average salary: $63,554
Washington – Ambulatory health care services
Persons employed: 156,003
Average salary: $64,501
West Virginia – Oil and gas extraction
Persons employed: 2,149
Average salary: $93,331
Wisconsin – Insurance carriers and related activities
Persons employed: 63,710
Average salary: $75,163
Wyoming – Oil and gas extraction
Persons employed: 3,039
Average salary: $113,739
While this list is a good snapshot, it doesn’t tell the whole picture. Simply because a state’s industry is the largest or most profitable, the size of an industry does not always indicate the number of jobs it provides. For example, the largest industry in a state could be one that is highly automated and requires relatively few workers, or it could be an industry that relies heavily on outsourcing or offshoring.
Additionally, some states may have multiple large industries that each provide a significant number of jobs. This is why you should always look beyond just the size of an industry and at the overall diversity of industries in the state. Also, be sure to consider specific factors contributing to job growth and employment opportunities in various sectors.
*Interesting fact: According to Statista.com, “As of January 2022, the most profitable industry in the United States was money-center banking, with a profit margin of 35.61 percent. Money-center banking covers banks located in major financial centers which deal with national and international markets. The profit margin of the financial services sector was a close second, with a profit margin of 32.33 percent.”
