News Summary
Texas has secured the second spot in CNBC’s latest analysis of the Top States for Business, just behind North Carolina. Achieving a score of 1,601 points, Texas outshines states like Florida and Virginia, but faces challenges in infrastructure and quality of life. Despite these hurdles, Texas remains a strong contender in the business landscape, boasting a robust economy and a large workforce. The state looks to improve its rankings by addressing quality of life metrics while continuing to drive job growth in the future.
Texas Ranks Second in CNBC’s 2025 ‘Top States for Business’
Texas has been recognized as the second-best state in CNBC’s 2025 “Top States for Business” ranking, just behind North Carolina, which secured the top spot with a score of 1,614 points. Texas achieved a close score of 1,601 points, maintaining its strong presence in the competitive landscape of business-friendly states.
Comparative Rankings
The latest ranking places Texas ahead of other competitive states such as Florida, Virginia, and Ohio, which completed the top five list. Texas Governor Greg Abbott has consistently promoted the state’s business environment, reaffirming its attractiveness for corporations and entrepreneurs alike.
Ranking Methodology
CNBC evaluates states based on a comprehensive methodology that includes ten weighted categories, with a maximum possible score of 2,500 points. These categories encompass essential factors such as education, workforce quality, technology, economy, infrastructure, and quality of life. The rankings rely on empirical data, which contributes to their reliability and relevance in assessing the business landscape.
Texas’s Strengths and Weaknesses
Texas performed exceptionally well in key categories, earning A+ marks in economy, workforce, and technology. The state boasts a workforce comprising 15.8 million individuals, ranking it number one in this category. Despite its positives, Texas received a C+ grade in infrastructure and reported a less favorable score in the cost of living section. Notably, the quality of life category ranked poorly, with Texas earning an F, scoring just 72 points as opposed to North Carolina’s 136 points. This category measures factors such as per capita crime rates, environmental quality, healthcare services, childcare, worker protections, and protections against discrimination.
Employment Trends
Texas currently holds a 4.1% unemployment rate, which is slightly below the national average of 4%. The state has seen impressive economic performance driven by the thriving Dallas-Fort Worth region and ongoing job growth initiatives. Nevertheless, companies seeking to attract and retain talent increasingly prioritize quality of life indicators, an area where Texas has room for improvement.
Broader Context
North Carolina received high marks for significant economic projects, including a new factory projected to employ 14,500 individuals by JetZero and a substantial $10 billion Amazon data center expansion, challenging Texas’s positioning. Historically, Texas has remained consistently in the top six states since 2007, with its last stint at the top occurring in 2018.
Recent Recognition
Texas continues to impress in broader rankings, receiving accolades such as Site Selection magazine’s “Top State Business Climate” for 2024. Despite this, other reports, including one from WalletHub, highlight the challenges facing Texas cities; for example, Houston was ranked 34th among large cities for starting a business in 2025.
Competitive Landscape
In summary, while Texas has solidified its status as a favorable environment for business and workforce growth, the state’s struggles in quality of life metrics could affect its long-term standing in future rankings. As Texas continues to advance its economic objectives, fostering improvements in areas essential for talent retention will be critical for maintaining its competitive edge.
Deeper Dive: News & Info About This Topic
- Dallas News
- Entergy News
- Statesman
- Innovation Map
- PR Newswire
- Wikipedia: Texas
- Google Search: Texas business rankings
- Google Scholar: Texas business
- Encyclopedia Britannica: Texas
- Google News: Texas business rankings
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