Alaska Ranks Last: CNBC's Top States for Business 2025

CNBC's 2025 Top States for Business Rankings

• 👑 North Carolina has secured the top spot for the third time in four years, demonstrating consistent competitiveness.
• 📉 States at the bottom of the list often face a combination of inherent disadvantages and self-inflicted issues.

States Tied at 46th Place

• ⚖️ Louisiana is heavily reliant on the federal government and struggles with a weak housing market.
• 📈 Rhode Island faces challenges with high costs and extensive regulations.

States at the Bottom of the List

• 👷 Montana ranks last for its workforce and workforce development programs.
• 💸 Hawaii is the most expensive state and is considered among the least business-friendly.
• 📉 Alaska finishes in last place due to its over-reliance on oil and gas, which constitutes 98% of its operating budget.

Alaska's Economic Challenges

• 🛢️ The state's economic fortunes are closely tied to the price of North Slope oil, which is declining.
• 🛒 High costs of living, such as $16/gallon milk, make it difficult for residents to afford necessities.
• 📊 Alaska faces the worst economy, second-worst infrastructure, and third-worst education system this year.
• 💡 Despite decades of attempts to diversify, initiatives like carbon storage leases and a natural gas pipeline have not gained traction.
• 🌐 Challenges include poor connectivity and broadband access, and the state's lack of sunlight also has societal effects.

Other Notable Rankings

• 🚀 Ohio entered the top five for the first time, attributed to its strong infrastructure.
• ⚠️ States like Virginia may be impacted by potential federal budget and job cuts.