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The Digital Evolution: US States Leading in Job Creation and Online Business Expansion

The Digital Evolution: US States Leading in Job Creation and Online Business Expansion
Image by Dorothe from Pixabay

Klaus Schwab, founder and Executive Chairman of the World Economic Forum, states that the world is beginning a Fourth Industrial Revolution, which will be more comprehensive and all-encompassing than anything we have ever seen. This possible change provides both risks and opportunities, requiring proactive adaptation by public and private actors.

In 2000, the unemployment rate in the United States was around 4%, which was considerably lower than in the EU (9.2%). It remained much lower than in the EU until early 2008 and the beginning of the financial crisis. Digitalization has a substantial impact on the labor market by modifying skills needed, working conditions, and job dynamics in the US. 

Concerning skills needs, individuals need new digital skills to respond to employers’ needs and function well in society as a whole. These skills range from basic digital literacy to advanced technical skills.

Direct Impact

Concerning job dynamics, the direct effect of digitalization on the labor market in the US is strong. There is a boom in both tech-related jobs (with a 31% faster growth than other expanding sectors) and STEM-related jobs (three times the average growth). However, multiple authors are concerned about ‘jobless’ growth. 

Despite the productivity gains and opportunities of digital media, potential downsides exist. There are also concerns about the protection of gig workers, as independent contractors are not covered by protections and benefits provided by some federal labor and employment laws.

Employment in jobs related to digitalization is booming. In the United States, the number of technology-related jobs grew 31% faster than other expanding sectors, such as health care and business services, in the last ten years.

Indirect effects 

The impact of digitalization on employment goes beyond direct employment in technology or STEM sectors. Most software developers and programmers work in industries such as manufacturing, finance, and business services.

Alaska: Tapping into Rich Resources

The northernmost state of Alaska has shown a remarkable job opening rate of 10.6% as of August 2023, leading the pack in job creation. This uptick can be attributed to various factors, including its rich natural resources, which provide abundant opportunities in sectors like fishing, mining, and oil and gas exploration. 

With strategic initiatives to bolster workforce development and foster economic diversification, Alaska is carving a niche for itself in the employment landscape.


Michigan’s online casinos have played a significant role in the state’s digital evolution, contributing to job creation and online business expansion. With a thriving industry of MI online casinos, Michigan has become a hotspot for digital innovation and a prime example of how states harness the power of the online gaming sector to drive economic growth and job opportunities.

South Carolina, Utah, and West Virginia: A Trio of Opportunity

Close on the heels of Alaska, South Carolina, Utah, and West Virginia, each posted a job opening rate of 7.1% during the same period. Utah stood out in 2022, with its young businesses generating a higher proportion of jobs at 3.14% compared to the national average of 2.20%. 

The pro-business policies, coupled with a focus on innovation and entrepreneurship, are driving job creation in these states. By harnessing their unique strengths and fostering a conducive environment for business growth, these states are contributing significantly to the nation’s employment landscape.

Flourishing Job Markets: Florida, Texas, Hawaii, and Washington

A cluster of states, namely Florida, Texas, Hawaii, and Washington, demonstrated robust job growth, with rates oscillating between 3.5% and 3.2% as of April 2023. Their diverse economies, favorable business climates, and strategic geographical locations are acting as catalysts for job growth. 

By nurturing sectors that are pivotal to their economies and investing in workforce development, these states ensure a thriving job market and a promising future for job seekers.

California, Texas, and Florida: Powerhouses of Job Creation

The year ending June 2022 marked a significant rise in employment in California, Texas, and Florida. These states, known for their vast economies and diverse industries, are powerhouses of job creation. Their concerted efforts to drive economic growth, coupled with an emphasis on innovation and technology, are propelling job creation to new heights. 

With a multitude of opportunities across various sectors, these states are playing a crucial role in reducing unemployment and driving the nation’s economy forward.

Online Business Expansion

The digital commerce sector is experiencing a surge, with certain states proving to be conducive to online business growth. Virginia, for instance, witnessed an impressive business growth rate of 10.5% as the number of businesses burgeoned from December 2021 onwards. 

The first quarter of 2023 saw a 3% growth in US retail e-commerce sales, totaling $272.6 billion, signifying a burgeoning online retail sector. A 2023 survey reflected in the Top States for Doing Business rankings revealed that industry consultants favored certain states based on various categories impacting companies’ location and facility plans, suggesting a favorable business climate. 

Furthermore, the US e-commerce sector continues to lead in 2023, with a focus on tapping global opportunities and watching trends in the American market, thus fostering a conducive environment for online business expansion.

Photo by Adi Goldstein on Unsplash

Bridging the Digital Divide

The synergies between job creation and online business expansion are palpable. States leading in job creation are also fostering a favorable climate for digital commerce. This nexus not only propels economic growth but also positions these states as attractive destinations for both job seekers and entrepreneurs. 

The digital evolution underscores the importance of creating a conducive ecosystem for both employment and business growth, which, in turn, contributes to the broader economic development across the United States.


The digital evolution sweeping across the United States is reshaping the job landscape and driving the expansion of online businesses. States that actively promote innovation, technology, and entrepreneurship are leading the way in job creation and digital transformation.

While tech hubs continue to shine, other states are also making significant strides, proving that the digital revolution is not confined to a few metropolitan areas.

Featured Image by Dorothe from Pixabay