News Summary
Texas has been ranked second in CNBC’s annual list of the best states to do business, following North Carolina. The state excelled in workforce development, job growth, and a favorable business climate, despite challenges in the quality of life category. With a booming economy and no corporate or personal income tax, Texas continues to attract businesses and investment, particularly in technology. However, it faces fierce competition to improve its quality of life offerings to remain a top choice for companies.
Texas has been ranked the second-best state to do business in for 2025, according to CNBC’s newly released annual rankings. The annual analysis assesses how well states promote and deliver on economic development priorities, indicating their business-friendly environments.
This year’s evaluation consisted of assessments across 135 distinct metrics, categorized into 10 groups, and worth a total of 2,500 points. Texas, with the second-largest state economy in the U.S., trails only California in overall economic size. The rankings reflect Texas’s performance in various categories, demonstrating resilience in the face of potential economic downturns.
Within the rankings, Texas excelled in the workforce category, where it secured the top position. This indicates a strong labor force capable of meeting the needs of various businesses. Texas also ranked second in both the economy and technology and innovation categories, underlining its commitment to fostering a nurturing climate for business growth.
Despite its commendable performance in other areas, Texas faced challenges reflected in its quality of life metrics, which ranked close to the bottom nationwide. Factors contributing to this low ranking include high uninsured rates and moderate crime rates, which play a significant role in determining overall living conditions within the state.
In contrast, Texas’ overall business climate is a major advantage for attracting investments, particularly within the tech sector. The absence of a corporate income tax and a personal income tax has significantly contributed to this favorable business environment. In the context of job growth, Texas adds more than 60,000 jobs annually, benefiting from a favorable tort system and substantial incentive programs that aim to attract new businesses.
In this year’s rankings, North Carolina has overtaken Texas to claim the top spot as the best state for business. North Carolina’s rise suggests policies emphasizing economic diversification, workforce development, and resilience in infrastructure. This shift underscores the growing importance of these factors for companies looking to establish or expand their operations.
The competitive environment has intensified for Texas, which has traditionally been viewed as a premier business hub. North Carolina’s consistent ranking as the top state for business three out of the last four years shows an upward trajectory in appealing to business relocations. This shift in rankings also highlights evolving corporate priorities—shifting focus towards sustainable ecosystems rather than purely cost-driven models for determining business locations.
Despite these changes, Texas remains a strong contender due to its connectivity to global markets, which is enhanced by significant infrastructure developments such as the Dallas-Fort Worth Airport and Houston’s deep water ports. Such developments maintain Texas’s attractiveness for businesses looking to expand their market access.
Currently, Texas boasts a robust job market, yet it also faces challenges with an unemployment rate of 4.1%, slightly above the national average of 4%. The Dallas-Fort Worth region is particularly noteworthy, accounting for about 30% of the state’s workforce, demonstrating its critical role in Texas’s large-scale economic landscape.
In summary, while Texas remains a leading destination for business, the ascendance of North Carolina in the rankings signals a significant challenge that could influence regional economic strategies and sustainability efforts going forward. As the business landscape evolves, Texas will need to address its quality of life issues while continuing to leverage its substantial economic strengths.
Deeper Dive: News & Info About This Topic
- Dallas News: Texas Edged Out by North Carolina in CNBC’s Rankings
- Newsweek: Map Showing Best and Worst States for Business
- AInvest: North Carolina Overtakes Texas in Business Rankings
- Cleveland.com: Ohio Breaks into Top Five States for Business
- Florida Politics: CNBC Rankings – Florida Jumps 2 Spots
- Wikipedia: Business in the United States
- Google Search: Best States for Business
- Google Scholar: Business Rankings
- Encyclopedia Britannica: Business
- Google News: Texas Business
Author: STAFF HERE COLLEGE WRITER
The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
