Economy of West Virginia facts for kids
The economy of West Virginia is about how the state makes and uses its money. In 2009, West Virginia's economy was ranked around the 62nd largest in the world. By 2021, the state's total economic output, called GDP, was about $72.48 billion. This shows how much value is created by all the goods and services produced in the state.
Morgantown was once ranked by Forbes magazine as one of the best small cities in the U.S. for business. West Virginia's unemployment rate, which is the number of people looking for jobs but can't find them, has changed over time. In August 2019, it was 4.6%, but it went up during the COVID pandemic. By November 2022, it had improved to 4.1%.
West Virginia's Economy at a Glance
West Virginia's economy has shown steady growth. In 2009, it was one of only ten states in the U.S. that saw its economy grow. This means more jobs and more money for people in the state.
People's income in West Virginia also grew by 1.8% in 2009, while the national average actually fell. Also, exports from West Virginia, which are goods sold to other countries, grew a lot in the first half of 2010.
However, personal income growth in West Virginia was slower in 2013 compared to the rest of the country. Over the last 30 years, overall income growth in West Virginia has been about one-third of the national average.
Morgantown is also home to West Virginia University, a large public university. Businesses in West Virginia benefit from lower costs compared to the national average.
Helping Appalachia Grow
The Appalachian Regional Commission (ARC) was created in 1965. Its goal is to help the Appalachian region, which includes all 55 counties in West Virginia, grow economically. West Virginia is the only state where the entire state is part of the Appalachian region.
The ARC looks at things like unemployment rates, income per person, and poverty rates to see how well counties are doing. They give each county a rating, from "distressed" (meaning they need the most help) to "attainment" (meaning they are doing very well). In 2003, many counties in West Virginia needed help, and only a few were doing well.
Main Industries in West Virginia
Many different types of businesses and industries help West Virginia's economy. Some of the biggest employers in the state include WVU Medicine, Walmart, and various health centers like CAMC Health. Other large employers are Kroger and Lowe's.
Science and New Technologies
West Virginia is home to many people working in advanced technology. The state receives millions of dollars each year for research and development (R&D) projects. Many federal research centers are located here, such as parts of the National Energy Technology Laboratory in Morgantown and the National Radio Astronomy Observatory in Green Bank.
West Virginia University also has important research centers, like the Blanchette Rockefeller Neurosciences Institute. Companies like BASF and Bayer also have a presence, especially in chemical and pharmaceutical industries.
Energy Production
West Virginia is a major energy producer for the United States. The state is known for its mineral resources, especially coal. It leads the nation in how much electricity it sends to other states and in underground coal mining. The natural gas industry is also growing quickly.
Overall, West Virginia produces about 15% of the nation's fossil fuel energy. It also has large reserves of natural gas and has been involved in drilling for oil for a long time.
The state is also developing more renewable energy sources, like biodiesel. Large energy companies like American Electric Power are also big employers in West Virginia.
Coal Mining
Coal is a very important natural resource in West Virginia. It was first found in the state in 1742. The coal industry directly employs thousands of people and has a huge economic impact, bringing in billions of dollars.
West Virginia is the largest coal producer east of the Mississippi River. It produces about 10% of all the coal in the U.S. Most of the coal mined today is used by power plants to create electricity for homes and businesses.
Clean and Renewable Energy
West Virginia is also working on renewable energy. The National Research Center for Alternative Fuels, Engines and Emissions is located in Morgantown.
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The state has several wind farms, which use large turbines to create electricity from wind. The Mountaineer Wind Energy Center was the first one, built in 2002. There are also several hydroelectric facilities, which use water to generate power, like the Summersville Dam.
Aerospace Industry
West Virginia has a growing aerospace industry. Major companies like Pratt and Whitney and Lockheed Martin have facilities in the state. These companies work on aircraft engines, defense systems, and other aerospace technologies.
Healthcare and Education
Healthcare and education are also big parts of West Virginia's economy. West Virginia University Healthcare is a major employer and has a large economic impact on the state. Other large healthcare providers include Charleston Area Medical Center.
Public and private colleges and universities in West Virginia also contribute billions of dollars to the state's economy and create many jobs.
Chemicals and Materials
West Virginia is a global center for chemical production. Many large chemical companies, including DuPont and Bayer, have factories in the state. These companies make a wide range of products, from plastics to specialized materials. The chemical industry provides many manufacturing jobs and contributes a lot to the state's economy.
The state is also home to steel and metal companies like ArcelorMittal in Weirton.
Automotive Industry
The automotive industry has also invested a lot in West Virginia. Companies like Toyota have large manufacturing plants in the state, such as the one in Buffalo. Other automotive parts suppliers, like Diamond Electric and NGK Spark Plugs, also have operations here.
Manufacturing, Retail, and Hospitality
West Virginia has various manufacturing businesses. Viatris, a pharmaceutical company, is a large manufacturing employer. Other companies like Toyota and Northrop Grumman also have facilities in the state.
Retail and hospitality are also important. Large stores like Macy's have distribution centers, creating many jobs. Famous local companies include Homer Laughlin China Company, known for its dinnerware, and Blenko Glass Company, which makes beautiful glass products.
Media and Communications
The state also has a media and telecommunications sector. Companies like Marquee Cinemas operate movie theaters, and West Virginia Radio Corporation is a major radio group. There are also companies focused on website design and development.
Tourism and Fun
Tourism is a very important industry in West Virginia, bringing in billions of dollars and creating tens of thousands of jobs. The state is famous for its beautiful mountains and outdoor activities.
Major tourist spots include ski resorts like Snowshoe Mountain, Canaan Valley, and Winterplace Ski Resort. There are also historic resorts like The Greenbrier in White Sulphur Springs.
Other attractions include museums like the Huntington Museum of Art, state parks like Blackwater Falls State Park, and amusement parks like Camden Park. West Virginia also hosts many festivals celebrating music, heritage, and local traditions.
Farming and Forests
Farming in West Virginia is often done on smaller family-owned farms. While many farmers have other jobs, farming is still a key part of the rural economy. Raising animals, especially cattle and chickens, is more common than growing crops.
The state also has a strong forestry industry. Companies like Georgia Pacific and Weyerhauser operate in West Virginia, employing many people in timber and wood product manufacturing.
Banking and Finance
West Virginia's banking sector is different from larger states. While some big national banks like JP Morgan Chase have a presence, local banks like Wesbanco are very important throughout the state.
