State’s Economic Strength, Workforce, and Innovation Propel It to No. 1
Back on Top: A Familiar Spot for the Tar Heel State
North Carolina has claimed the No. 1 position in CNBC’s America’s Top States for Business for 2025, marking its third win in the past four years. The announcement came during a special broadcast from the Battleship North Carolina in Wilmington, where CNBC anchor Scott Cohn praised the state’s enduring appeal.
“The state’s world-class workforce, a solid economy, and a heritage of innovation,” said Cohn, “has enabled it to keep winning business, and keeps winning our rankings.”
North Carolina previously ranked first in 2022 and 2023, and placed second in both 2021 and 2024. This year’s top five also included Texas, Florida, Virginia, and Ohio, with Virginia—the 2024 winner—falling to fourth place.
Consistent Excellence Since 2007
North Carolina has consistently ranked as a national leader in CNBC’s rankings since the list debuted in 2007. The state has never placed lower than 12th and has been in the top five in 13 out of 17 editions of the report (note: no rankings were issued in 2020 due to the COVID-19 pandemic).
A key turning point came following the 2010 midterm elections, when policy reforms by a new legislative majority began shifting the state toward a more fiscally disciplined, pro-business model. What was once a budget deficit of up to $2 billion has since become a surplus of $5 billion before Hurricane Helene struck in 2024.
How the Rankings Work: A Data-Driven Approach
Now in its 19th year, CNBC’s Top States rankings are based on 135 measurable metrics across 10 broad categories that influence business decisions. This year, the most heavily weighted category was Economy, followed by Workforce and Infrastructure.
New in 2025 were metrics assessing states’ exposure to trade risks and federal budget reductions. Infrastructure ratings were also refined to account for growing energy and data demands. CNBC emphasized that the study relies strictly on data, not opinion, drawing from diverse sources and expert consultation.
North Carolina’s 2025 scores included:
- 3rd in Economy
- 4th in Workforce and Business Friendliness
- 6th in Education
- 8th in Access to Capital
- 11th in Infrastructure
- 13th in Technology & Innovation
- 21st in Cost of Doing Business
- 23rd in Cost of Living
- 29th in Quality of Life
The state received top letter grades in several categories: A in Business Friendliness, A- in Economy, Workforce, and Education; B+ in Infrastructure and Access to Capital; B in Cost of Doing Business and Technology & Innovation; C+ in Cost of Living; and C- in Quality of Life.
Population Growth and Economic Profile
North Carolina’s business appeal is matched by strong population growth. The state has gained more than 3 million residents in the past 20 years and over 5.1 million in the last 40, bringing its current population to around 11 million.
Additionally, North Carolina holds a AAA bond rating from all three major national credit rating agencies: Moody’s, Fitch, and S&P Global.
New Investments and Forward Momentum
Speaking to CNBC after the announcement, Governor Josh Stein emphasized the state’s momentum to explain its success. “We are open for business. Since January 1, we’ve announced more than $20 billion in investment, producing over 23,000 jobs.”
“We are the third fastest growing state in the country. We have a solid, growing economy, but it’s all about our people. We have the most talented, good, hardworking people you could possibly know,” Stein continued.
“If you are a biotech, pharmaceutical, or aerospace company, you can come here and we have the engineers and scientists to design your products. Then we have the talented advanced manufacturing workforce to produce them.”
These figures underscore the state’s continued appeal to businesses and its capacity to deliver on economic development strategies that align with workforce readiness and fiscal stability.
National Competitors: Strong Showings, Mixed Challenges
Texas claimed second place this year, dominating in Workforce thanks to strong talent attraction. However, it ranked 49th in Quality of Life due to healthcare gaps, high crime, and minimal anti-discrimination protections.
Florida climbed to third, buoyed by a strong Economy for the third year in a row. Still, rising costs—particularly in housing and insurance—are beginning to temper its appeal.
Virginia, a former No. 1 state and longtime rival to North Carolina, fell to fourth this year. While still a leader in Education and Infrastructure, its heavy dependence on federal spending leaves its economic future uncertain amid federal budget tightening.
Leading the Way—Again
North Carolina narrowly missed the top spot in 2024 by just three points. Now, it returns to the summit in 2025 with a balanced and resilient economic profile, a deep talent pool, and a business climate that continues to earn national recognition.
With strong leadership, robust investment, and continued innovation, North Carolina isn’t just a top state for business—it’s setting the pace for the nation.