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 Business Rankings
Texas has ranked second in CNBC’s 2025 “America’s Top State for Business” rankings, losing the top spot to North Carolina, which claimed first place for the third time in the last four years. This shift highlights the rising economic landscape of North Carolina, despite Texas’s ongoing reputation as a “miracle” economy.
The rankings assess various factors that contribute to a state’s business environment. Texas excelled in workforce quality, boasting the highest score with a labor force of approximately 15.8 million people. In contrast, North Carolina achieved commendable scores in several categories, ranking third for economy, fourth for workforce and business friendliness, and thirteenth for technology and innovation.
Challenges for Texas
Despite its strengths, Texas faced significant challenges that affected its overall ranking. The state performed poorly in two critical areas: quality of life and infrastructure, landing at 49th in quality of life and 26th in infrastructure according to the rankings. These areas were noted as vital for influencing business growth and attractiveness.
While Texas boasted an impressive cost of doing business ranking at No. 5 and maintained a high position at second for technology and innovation, it fell short in aspects affecting the day-to-day living conditions and infrastructure, which are becoming increasingly important to businesses and employees alike. Concurrently, Texas experienced record job growth, with an unemployment rate of 4.1%, slightly above the national average of 4%.
Regional Insights
The Dallas-Fort Worth area remains a stronghold for Texas’s labor market, accounting for around 30% of the state’s workforce and reporting an unemployment rate of approximately 3.7%. This region has earned the title of the “headquarters of headquarters,” attracting numerous businesses from other states due to its favorable economic conditions and financial incentives.
North Carolina’s Economic Growth
North Carolina has made noteworthy advancements in 2025, with announcements such as JetZero’s upcoming factory in Greensboro, which is expected to employ 14,500 people, and Amazon’s impressive $10 billion data center expansion. These developments highlight the sustained economic growth in North Carolina and reflect its increasingly favorable business climate.
Texas’s Competitive Landscape
Historically, Texas has consistently placed within the top six states since CNBC began its rankings in 2007, with its last top ranking occurring in 2018. Despite the recent drop, Texas continues to score highly in other business evaluations; it was ranked first in Site Selection magazine’s “Top State Business Climate” for 2024. This discrepancy in rankings emphasizes that while Texas may face challenges in certain areas, it remains an attractive destination for business investment and growth.
Texas’s strong connectivity to global markets, particularly through the Dallas-Fort Worth Airport, Houston’s deep-water ports, and established trade corridors to Mexico, has been an essential factor in maintaining its competitive advantage. Furthermore, industry experts have noted that while Texas excels in workforce metrics, it must address infrastructural deficits and improve the quality of life for its residents to sustain its business growth.
Looking ahead, stakeholders in Texas will need to focus on bridging these gaps to reclaim its position as the top state for business. With strong foundational elements already in place, improvements in infrastructure and quality of life could enhance Texas’s standing in future rankings and solidify its reputation as a prime location for businesses.
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 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.
