Illinois was recently ranked 46^th out of the 50 states for economic competitiveness by the American Legislative Exchange Council (ALEC).

In 2024, Illinois ranked 48^th for economic competitiveness.

The findings reinforce a report published earlier this year by Moody’s on behalf of the Illinois Commission on Government Forecasting and Accountability (CGFA). Moody’s predicted that “Illinois will underperform the region and the U.S. in 2025, with gross state product, employment, and income increasing less than elsewhere.”

The index’s five highest ranking states for economic competitiveness were:

• Utah (Ranked #1)
• Tennessee (Ranked #2)
• Indiana (Ranked #3)
• North Carolina (Ranked #4)
• North Dakota (Ranked #5)

The index’s five lowest ranking states for economic competitiveness were:

• Illinois (Ranked #46)
• California (Ranked #47)
• New Jersey (Ranked #48)
• Vermont (Ranked #49)
• New York (Ranked #50)

The ranking was included in the 18^th edition of Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index. The index takes into account 15 variables that encompass tax policy, public debt, legal systems, labor laws, and public employment.

Illinois’ employment rate continues to trail the nation’s. According to the U.S. Bureau of Labor Statistics, only four states had higher unemployment rates than Illinois as of March 2025.