Wyoming’s economic outlook for 2025 reflects a “strong to steady” performance in most sectors, but with continued struggles in natural resources, mining, agriculture, finance, and housing, Wyoming News Now reports.
Experts from the University of Wyoming’s Center for Business and Economic Analysis (CBEA) say the state’s economy will see growth in tourism, construction, and manufacturing, while mining and related industries remain a point of concern.
“The outlook for most sectors is strong to steady,” said Anne Alexander, an economist who led the second annual statewide economic outlook study.
However, Wyoming’s historic reliance on the natural resource sector, particularly coal, continues to cast a shadow.
One of Wyoming’s most iconic industries—natural resources and mining—continues to experience a sharp downturn. In 2014, mining accounted for 12.06% of Wyoming’s employment, but by 2025, it is projected to make up just 7.6%.
“The elephant in the room with Wyoming is always the coal sector,” Alexander said.
She noted that the industry faces both regulatory and market-driven pressures. Energy jobs have declined 40%, leading to a loss of around 10,000 jobs over the last decade, with major ripple effects on local communities.
However, there are still signs of hope. Trona mining and rare earth mineral extraction offer potential opportunities for Wyoming, according to Alexander. The development of new technologies, such as TerraPower’s nuclear power plant in Kemmerer, also suggests future diversification within the energy sector.
Wyoming Business Council CEO Josh Dorrell highlighted the social and economic impact of the downturn, noting that Wyoming’s reliance on natural resource extraction has historically funded essential services like schools and local government operations. When these industries decline, entire communities feel the effects.
“A lot of essential services in our communities are funded by those (industries), and it is really difficult in our communities when they go down,” Dorrell said.
Wyoming’s housing market continues to be a challenge for its economy. Housing shortages make it difficult for businesses to expand or recruit workers, according to Dorrell. High costs and limited supply mean that both renting and homeownership are out of reach for many residents.
The average hourly wage needed to afford a two-bedroom apartment in Wyoming is $20.90, far beyond what many residents earn. Even households with a median income may struggle to purchase a home, Alexander said.
“Housing is a very big barrier to growth in Wyoming,” Dorrell said. “If we’re going to grow and diversify, we’re going to have to have a place for the workforce to live.”
To address these issues, the Wyoming Business Council has partnered with organizations like The Growth Lab at Harvard Kennedy School to explore creative housing solutions. One possibility is to reduce local regulations that restrict new housing development.
The agricultural sector faces its own set of challenges, especially in the aftermath of rangeland wildfires that swept through northern Wyoming in 2024. Governor Mark Gordon has emphasized the need for immediate action, recommending $140 million for firefighting and restoration efforts.
“Putting out the flames was long, hot, hard work,” Gordon said. “The harder work begins once the fires are out.”
On the financial front, Wyoming’s economic future will be influenced by national trends, as experts note that the US economy has shown “incredible resilience” in 2024, despite lingering effects of inflation. However, economists caution that “complex and challenging emerging indicators” could temper growth in 2025.
Wyoming’s outmigration problem is another ongoing challenge. About 37% of University of Wyoming graduates from 2007 to 2024 have left the state, putting Wyoming second only to West Virginia in terms of the percentage of educated youth leaving the state.
“We have the second-largest (outmigration) in the United States,” Alexander said.
She noted that efforts are underway to encourage young people to remain in Wyoming after graduation.
Not all news is grim for Wyoming’s economy. The report notes several areas of positive growth potential, particularly in tourism, technology, research and development, and venture capital investment.
Wyoming ranks second in the nation for the percentage of science and engineering degrees among higher education graduates. 45.8% of Wyoming’s higher education degrees are in these fields, compared to a US average of 35.7%, positioning the state as a potential hub for innovation and research.
Venture capital investment is also on the rise. In 2022, Wyoming had $16,149.76 in venture capital per $1 million of gross state product, well above the US average of $9,898.93. On a per-deal basis, Wyoming ranks fifth in the nation, with an average of $11.49 million per deal.
Low property taxes are another factor that supports Wyoming’s attractiveness for business. The state’s property tax rates ranked #37 in the US in 2022, providing a relatively low-cost environment for new ventures and development.
The report projects “moderate” national growth for the US economy in 2025. For Wyoming, this outlook is coupled with both challenges and opportunities. Economic diversification will be key as the state works to reduce its reliance on the boom-and-bust cycles of coal, oil, and natural gas.
“Wyoming was the last state that didn’t have a homegrown economic forecast,” said Alexander. “We’re glad to fill that void.”
