Report on Economic Growth and Sustainable Development Goals (SDGs) in U.S. States (2005–2024)

Introduction to Economic Growth and Productivity

Economic growth, measured as the percent change in real GDP (RGDP) per capita, is influenced by multiple factors including employment levels and average labor productivity (ALP), defined as GDP per worker. An increase in ALP indicates higher output per worker, contributing positively to overall GDP growth.

ALP is affected by a broad range of elements such as technology, demographics, health, culture, and public policy, many of which have long-term impacts. Sustainable economic growth requires stable policy regimes that foster continuous investment and production over time, aligning with the principles of the Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).

Policy Regimes and Economic Growth

Economic growth is shaped by comprehensive policy regimes rather than isolated policies. The complexity of growth inputs means that even well-performing economies may face criticism regarding policy effectiveness. This underscores the importance of sustainable governance frameworks that promote inclusive and sustained economic development, supporting SDG 16 (Peace, Justice, and Strong Institutions).

State-Level Growth Statistics (2005–2024)

This report analyzes key growth indicators across U.S. states over a 20-year period, including population, employment, and RGDP, highlighting the role of institutions and policies in shaping migration, fertility, employment, and productivity.

Population Growth and Migration Trends

• States like Utah have experienced a 43% population increase over two decades, reflecting successful demographic and social policies.
• Idaho and Nevada have outpaced Florida in population growth, challenging common narratives about migration trends.
• Population growth correlates closely with employment trends, though external factors such as commodity prices can cause fluctuations, as seen in North Dakota.

These dynamics relate to SDG 11 (Sustainable Cities and Communities) and SDG 3 (Good Health and Well-being), emphasizing the importance of demographic and social factors in economic development.

Employment-Population Ratio Changes

The employment share, representing the proportion of employed individuals contributing to output, has shifted modestly across states:

1. Texas and Utah show positive changes in employment share.
2. Florida exhibits a decline, likely due to an increasing retiree population.
3. District of Columbia and Massachusetts demonstrate strong employment shares, possibly due to effective labor policies and workforce attraction.

These employment trends support SDG 8 by highlighting labor market participation and the quality of employment opportunities.

Average Labor Productivity (ALP) Growth

• North Dakota leads in ALP growth, driven by energy sector developments.
• Washington and California rank second and third, respectively, indicating robust productivity improvements.
• California’s data suggests a concentration of higher productivity workers despite population outflows, reflecting complex labor market dynamics.

Enhancing ALP aligns with SDG 9 by promoting innovation and infrastructure that improve worker productivity and economic resilience.

Real GDP Per Capita Growth

RGDP per capita growth rates provide a comprehensive measure of economic well-being:

• Washington and California remain among the top performers, indicating sustained income growth and economic prosperity.
• Texas maintains strong growth, while Florida ranks lower with an 18% increase over 20 years.
• New York also demonstrates healthy economic growth.

These outcomes contribute to SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities) by reflecting improvements in income levels and economic equity.

Summary and Policy Implications

The analysis reveals that economic growth is multifaceted and influenced by long-term governance regimes rather than isolated policies. The diversity of state performances illustrates the benefits of federalism, allowing for policy experimentation and mobility, consistent with SDG 16.

While no state is without challenges, many states, including Massachusetts, rank in the top quintile for economic growth, demonstrating that sustainable development is achievable through balanced policy frameworks.

Key Takeaways Aligned with Sustainable Development Goals

• SDG 8 (Decent Work and Economic Growth): Employment growth and labor productivity improvements are critical for sustained economic development.
• SDG 9 (Industry, Innovation, and Infrastructure): Technological advancement and innovation drive productivity and economic resilience.
• SDG 11 (Sustainable Cities and Communities): Population and migration trends affect urban development and social infrastructure.
• SDG 16 (Peace, Justice, and Strong Institutions): Effective governance regimes underpin long-term economic success and policy stability.
• SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities): Income growth per capita reflects progress in reducing poverty and economic disparities.

References and Data Sources

• FRED-State GDP data (2005–2024) used for economic analysis.
• Additional historical state GDP data available for extended research.
• Consideration of industry tax burdens and demographic social program utilization in interpreting growth statistics.

For further details on federalism and policy trade-offs, refer to related analyses on market-preserving federalism and local autonomy.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 8: Decent Work and Economic Growth
   • The article focuses on economic growth measured by RGDP per capita, employment rates, and labor productivity, which are core aspects of SDG 8.
   • Discussion of employment-population ratio and labor productivity relates directly to promoting sustained, inclusive, and sustainable economic growth and productive employment.
2. SDG 9: Industry, Innovation and Infrastructure
   • Technology and productivity improvements mentioned as factors affecting average labor productivity (ALP) connect to fostering innovation and infrastructure development.
3. SDG 10: Reduced Inequalities
   • The article touches on income growth and inequality implications, especially in states like California, implying concerns about reducing inequalities within and among states.
4. SDG 11: Sustainable Cities and Communities
   • Discussion on migration patterns, population growth, and employment in various states relates to sustainable urban development and community well-being.
5. SDG 17: Partnerships for the Goals
   • The mention of federalism and governance regimes highlights the importance of institutional partnerships and governance mechanisms for sustainable development.

2. Specific Targets Under Identified SDGs

1. SDG 8: Decent Work and Economic Growth
   • Target 8.1: Sustain per capita economic growth in accordance with national circumstances.
   • Target 8.5: Achieve full and productive employment and decent work for all women and men.
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.
2. SDG 9: Industry, Innovation and Infrastructure
   • Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and GDP.
   • Target 9.5: Enhance scientific research, upgrade technological capabilities of industrial sectors.
3. SDG 10: Reduced Inequalities
   • Target 10.1: Achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average.
4. SDG 11: Sustainable Cities and Communities
   • Target 11.3: Enhance inclusive and sustainable urbanization and capacity for participatory, integrated, and sustainable human settlement planning and management.
5. SDG 17: Partnerships for the Goals
   • Target 17.14: Enhance policy coherence for sustainable development.
   • Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships.

3. Indicators Mentioned or Implied to Measure Progress

1. Economic Growth and Productivity Indicators
   • Percent change in Real Gross Domestic Product (RGDP) per capita.
   • Average Labor Productivity (ALP) measured as GDP per worker.
   • Employment-population ratio (proportion of people employed).
2. Population and Migration Indicators
   • Population growth rates by state.
   • Migration patterns (inflow and outflow of people between states).
3. Income and Inequality Indicators
   • Growth in income per capita as a proxy for economic well-being and inequality trends.
4. Governance and Policy Regime Indicators (Implied)
   • Policy regimes over time impacting economic growth and labor productivity.
   • Institutional factors influencing migration, fertility, employment, and productivity.

4. Table of SDGs, Targets, and Indicators

Source: economistwritingeveryday.com