News Summary
Texas has dropped to second place in the latest ‘America’s Top State for Business’ rankings, with North Carolina taking the top spot for 2025. While Texas excels with its massive workforce, it faced challenges in quality of life and infrastructure. Job growth remains strong, particularly in the Dallas-Fort Worth area. Despite the setback, Texas’s vibrant economy and potential for improvement keep hopes alive for reclaiming its former glory.
Texas Falls to Second Place in CNBC’s 2025 “America’s Top State for Business” Rankings
Texas has been ranked second in CNBC’s 2025 “America’s Top State for Business” rankings, losing the top spot to North Carolina. This marks a significant shift for Texas, which had previously been regarded as a “miracle” economy. North Carolina, now holding first place for the third time in the last four years, has made major strides this year, specifically in economic development and job creation.
Ranking Insights
Texas earned the highest score for its workforce, boasting a population of approximately 15.8 million people actively contributing to the labor market. However, despite this strong showing, the state experienced low scores in other critical areas, ranking 49th in quality of life and 26th in infrastructure.
In terms of business operations, Texas ranked fifth for the best cost of doing business, 17th for business friendliness, and second for technology and innovation. While Texas has been noted for record job growth—with an unemployment rate of 4.1%—this rate is slightly above the national average of 4%. In contrast, the Dallas-Fort Worth area, which comprises about 30% of the state’s labor force, is faring better with a jobless rate around 3.7%.
North Carolina’s Economic Progress
North Carolina’s rise in the rankings can be attributed to several significant economic developments. The state recently announced JetZero’s plan for a new factory in Greensboro, which is expected to employ around 14,500 people. Additionally, Amazon is embarking on a $10 billion data center expansion in the region, bolstering North Carolina’s position as a business-friendly environment.
North Carolina also excelled in other rankings, placing third in overall economy, fourth in workforce and business friendliness, and thirteenth in technology and innovation. These factors have contributed to its strong showing in the CNBC rankings.
Texas’s Economic Landscape
Even though Texas has faced ranking challenges, the state continues to attract businesses and talent, particularly within the Dallas-Fort Worth area, known as the “headquarters of headquarters.” This region has successfully lured numerous companies relocating from other states, thanks to its robust connections to global markets, including DFW Airport and deep-water ports in Houston. The established trade corridors to Mexico also bolster Texas’s status as a business hub.
Challenges Ahead
Despite its advantages, Texas’s lower scores in quality of life and infrastructure have raised concerns among economic experts regarding the state’s future business growth potential. In subjective evaluations of quality of life, this aspect plays a crucial role in attracting new residents and enterprises—a point elaborated by site selection professionals who highlight that Texas still outperforms North Carolina in various other business-related rankings, such as Site Selection magazine’s “Top State Business Climate” for 2024.
In comparison, Alaska has been identified as the worst state for business, primarily due to adverse effects from declining oil prices. The contrasting landscapes of Texas and North Carolina highlight the dynamic and changing nature of business environments in the United States.
Conclusion
As the CNBC rankings underscore, Texas remains a vital player in the economic landscape of the United States. However, it must address its challenges in quality of life and infrastructure to reclaim its top position and continue to attract a diverse array of businesses seeking growth and opportunity.
Deeper Dive: News & Info About This Topic
- Dallas News: Texas Edged Out by North Carolina Again in CNBC’s Top States for Business
- Wikipedia: Texas
- Houston Chronicle: Trump, Texas Economy, Tariffs, Budget
- Google Search: Texas Economy
- U.S. Chamber of Commerce: Why Business is Thriving in North Texas
- Encyclopedia Britannica: State of Texas
- Business Facilities: Why Texas
- Google News: Texas Business Rankings
Author: STAFF HERE GEORGETOWN
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