CNBC's Top States for Business 2025: How Rankings Are Determined

Methodology for Top States for Business

• 🏆 CNBC's "Top States for Business" study, now in its 19th year, is designed to adapt to changing economic and political landscapes.
• ⚖️ The study uses 10 broad categories of competitiveness, with their weighting adjusted annually to reflect what matters most to states and companies.

Shifting Category Weights for 2025

• 📈 This year, the economy carries the most weight due to uncertain times, surpassing infrastructure, which was the top category last year.
• ⚠️ New factors being considered include the potential impacts of tariffs and federal job cuts on state economies.
• 💼 Cost of doing business moves up in importance due to persistent inflation fears, even with recent economic data.

Key Factors in Competitiveness

• 🧑‍💼 Workforce remains important, despite a slowdown in hiring, due to an ongoing worker shortage.
• 🏢 Business friendliness is receiving more attention this year.
• 🏡 Quality of life and workforce categories carry slightly less weight as hiring slows.
• 🔬 In technology and innovation, the study factors in the potential impact of federal research cuts, which vary significantly by state.

Additional Ranking Criteria

• 📚 Education is a key component of the rankings.
• 💰 Access to capital is considered for business growth.
• 💲 The cost of living is also a factor in determining a state's competitiveness.
• 🌐 Detailed methodology and state rankings can be found at topstates.cnbc.com.