South Dakota, Arkansas and Missouri Beat California and New York for Immigrant Economic Success

Written By: Tuhin Sarkar

Tuhin Sarkar

Tuhin Sarkar is a Senior Journalist at Travel and Tour World with more than 10 years of experience in travel and tourism journalism. A post-graduate in Journalism and Mass Communication from Jadavpur University, he combines strong research, industry knowledge and storytelling expertise to produce engaging, insightful and impactful travel news and fascinating feature stories.

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September 4, 2026 7:23 PM

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South Dakota, Arkansas and Missouri are beating California, New York and Florida in immigrant economic outcomes, as lower costs and stronger labour markets reshape where newcomers may find better financial prospects.

South Dakota, Arkansas and Missouri are emerging as unexpected leaders for immigrant economic outcomes, while California, New York and Florida sit near the bottom. The contrast is striking. These smaller states do not have the huge immigrant populations associated with America’s biggest coastal destinations. Yet, the ranking suggests that immigrants can find stronger economic conditions where living costs are lower and labour markets are tighter.

Meanwhile, California and New York continue to attract newcomers through established communities, jobs and family networks. However, high housing and everyday expenses can reduce the financial benefit of higher wages. Therefore, the findings challenge conventional assumptions about immigrant opportunity.

South Dakota, Arkansas, Missouri, North Dakota and Idaho have emerged as the five strongest US states for immigrant economic conditions, according to a ranking examining several measures of financial opportunity. The result creates a striking contrast with the country’s biggest immigrant destinations.

California, New York and Florida, which are home to some of the largest immigrant populations in the United States, rank near the bottom of the list. California is placed 49th, New York 48th and Florida 46th.

The findings point to a broader issue for immigrants deciding where to live and work: the state with the biggest job market is not necessarily the state offering the strongest economic outcome.

South Dakota Leads an Unexpected Group

South Dakota ranks first, followed by Arkansas, Missouri, North Dakota and Idaho.

The five states share an important characteristic. None is among America’s most prominent immigrant settlement destinations, particularly when compared with California, New York and Florida.

Their stronger position is linked to the economic conditions measured by the ranking, including employment, entrepreneurship, income disparities, job growth and the cost of living.

That combination matters.

A state can offer fewer jobs overall while still providing favourable conditions for workers if employment opportunities are available, wages are comparatively useful against household expenses and businesses have room to grow.

For immigrants, that can translate into a more manageable route towards financial stability.

California, New York and Florida Tell a Different Story

California’s 49th-place ranking is particularly notable because the state has one of the largest and most established immigrant populations in the country.

New York follows at 48th, while Florida ranks 46th.

These states remain powerful economic and cultural centres. They have extensive immigrant communities, international connections, major metropolitan areas and established employment networks. For many newcomers, those advantages can outweigh a weaker position in a state-level economic ranking.

However, the cost of living changes the calculation.

Housing is a major factor. Rent and property costs in expensive metropolitan markets can absorb a substantial share of household income. Food, transport, childcare and other everyday expenses can further reduce disposable income.

Consequently, a higher nominal wage does not automatically mean a better financial outcome.

Why Cost of Living Changes the Equation

The ranking highlights a basic economic principle that is easy to overlook when comparing states: income must be considered alongside the cost of maintaining a household.

Consider two workers earning different salaries in two different states. The worker with the higher wage is not necessarily financially better off if housing and essential expenses consume a much larger portion of earnings.

This is particularly relevant for immigrants who may be establishing themselves from scratch.

A newcomer may need to pay for accommodation, transport, professional qualifications, education, healthcare, family expenses and other settlement costs. Building savings can therefore take longer in a high-cost market, even where employment opportunities are plentiful.

Lower-cost states can offer a different equation.

Where housing and daily expenses are more manageable, a steady income may leave more room for savings, debt repayment, business investment or other financial goals.

Strong Labour Markets Can Matter More Than Size

Large states naturally dominate discussions about employment because their economies contain millions of jobs across numerous industries.

Yet, size alone does not determine economic opportunity.

Smaller states can benefit from tight labour markets in which employers need workers. This can create opportunities in sectors such as manufacturing, logistics, healthcare, agriculture, construction, hospitality and other essential services, depending on local demand.

For immigrants, access to work is only one part of the equation. The ability to retain enough income after essential expenses is equally important.

That is why employment, job growth and living costs need to be considered together rather than separately.

The ranking’s results illustrate this distinction. States outside the traditional immigrant hubs can perform strongly when several economic indicators align.

Entrepreneurship Adds Another Dimension

Entrepreneurship is another important element in the assessment.

Immigrants have long contributed to business creation across the United States, from small local enterprises to technology companies and major national businesses. But the environment for starting and operating a business can vary considerably between states.

Lower operating costs can potentially make it easier for entrepreneurs to manage premises, staffing and other expenses. Local demand, access to workers and the broader business environment can also influence whether a new venture has room to grow.

This helps explain why an economic ranking based on several indicators can produce a very different result from a simple ranking of states by immigrant population.

The two measurements are answering different questions.

One asks where the largest immigrant communities are located. The other asks where immigrants may experience stronger economic conditions.

Those are not necessarily the same thing.

The Trade-Off for New Arrivals

For someone preparing to move to the United States, the decision is rarely purely financial.

Family members may already live in California, New York or Florida. Friends can provide accommodation, employment leads and practical support. Established immigrant communities can make it easier to navigate unfamiliar systems, find culturally familiar services and build social connections.

Those networks have real economic value, even if they are not fully captured by a state ranking.

A newcomer may therefore choose a high-cost state because a relative can help secure a first job. Another person may choose a smaller state because affordable housing and employment prospects are more important to their circumstances.

The best destination is consequently not universal.

The ranking should be viewed as a starting point for comparison rather than a prescription for every immigrant household.

Immigration Costs Make the Decision More Important

The financial calculation becomes even more significant when immigration-related expenses are considered.

The Mendoza Law Firm study referenced in the supplied material places the state ranking alongside the costs associated with the immigration process, including naturalisation and green card expenses.

For newcomers already facing substantial administrative and settlement costs, the ability to generate stable disposable income can matter considerably.

A state where essential expenses consume less of a household’s earnings could, in principle, provide greater room to rebuild savings after those upfront costs.

That does not mean moving to a lower-ranked state is automatically the correct decision. Immigration status, professional qualifications, family responsibilities, employment availability and access to community support all remain critical considerations.

Nevertheless, the economic difference between states deserves attention.

Why Big Immigrant Destinations Remain Popular

The bottom positions of California, New York and Florida should not be interpreted as evidence that these states lack opportunity.

They remain among the country’s most internationally connected economies and major gateways for global migration.

California has enormous technology, entertainment, agriculture, manufacturing and services industries. New York is a global centre for finance, media, tourism, professional services and international business. Florida has major tourism, aviation, logistics, construction and service economies and attracts residents from across the world.

Their large immigrant populations are partly a reflection of those opportunities.

Once communities become established, they can reinforce migration patterns. New arrivals often follow relatives, friends and professional contacts who are already there.

This creates a powerful network effect.

The result is a paradox: the states with the largest immigrant communities can continue attracting newcomers even when their cost-adjusted economic performance is weaker than that of less prominent destinations.

What the Ranking Means for US Travel and Tourism

The findings also have implications beyond employment and settlement.

Immigrant communities contribute to the wider US visitor economy through restaurants, accommodation businesses, retail, cultural attractions, transport services and entrepreneurship. States with growing immigrant populations can develop new tourism products, culinary destinations and cultural experiences.

At the same time, economic opportunity can influence where people travel, relocate and invest.

A worker who finds affordable housing and stable employment in a smaller state may have greater disposable income for domestic travel. Business owners can also contribute to local visitor economies by creating restaurants, hotels, shops and attractions.

For destination marketing organisations, this makes demographic and economic trends relevant to long-term tourism planning.

A Different Way to Think About Immigrant Opportunity

The biggest lesson is straightforward: immigrant opportunity cannot be measured by population size alone.

South Dakota, Arkansas, Missouri, North Dakota and Idaho may not have the international profile of California, New York or Florida, but their stronger positions in this ranking show why economic conditions need to be examined at a state level.

Employment prospects, entrepreneurship, wage performance, job growth and living costs can collectively determine how much financial progress a household can make.

For immigrants weighing their next move, the practical question is therefore not simply, “Where do the most immigrants live?”

It is also, “Where can my income go further?”

“These findings offer a valuable perspective on how immigrant economic success is shaped by factors beyond the size or reputation of a destination. South Dakota, Arkansas, Missouri, North Dakota and Idaho demonstrate that smaller states can create compelling conditions when employment opportunities, entrepreneurship, job growth and affordability work together. For the travel and tourism industry, this is particularly relevant because economically confident communities can contribute to local businesses, hospitality, cultural experiences and domestic travel. At the same time, California, New York and Florida remain enormously important global destinations. The real opportunity lies in understanding how economic strength and community connectivity can develop together.”— Anup Kumar Keshan, Founder and Editor-in-Chief, Travel And Tour World

Economic Opportunity Is Not Always Where Immigration Is Highest

The ranking creates a clear divide between America’s traditional immigrant hubs and several smaller states. South Dakota leads the list, with Arkansas, Missouri, North Dakota and Idaho completing the top five, while California, New York and Florida sit near the bottom.

The cause is not a lack of jobs or opportunity in the larger states. Instead, the figures reflect how employment, entrepreneurship, income gaps, job growth and living costs interact.

The answer for newcomers is to look beyond population size and headline wages. A smaller state may provide a stronger financial platform when lower living costs combine with employment opportunities.

The reason established destinations remain dominant is equally clear: family ties, community networks and job connections are powerful forces.

Ultimately, the best state depends on each immigrant’s circumstances. But the data make one point difficult to ignore: America’s biggest immigrant destinations are not automatically its strongest economic destinations for newcomers.