North Carolina Crowned America’s Top State for Business in 2025
In a remarkable feat of economic resilience and strategic growth, North Carolina has once again earned the coveted title of the best state for business in the United States for 2025. This marks the Tar Heel State’s third win in four years, underscoring its sustained appeal to companies and workers alike. Last year, North Carolina narrowly missed the top spot by a mere three points, demonstrating an upward trajectory that now culminates in reclaiming the crown.
Key Drivers of North Carolina's Success
What propels North Carolina to the top? CNBC's latest rankings highlight the state’s strongest suits: a vibrant economy, a robust and skilled workforce, and notable business friendliness. The state's gross domestic product increased by 3.7% in 2024 — ranking fifth nationwide — while it added over 60,000 new jobs, reflecting a dynamic labor market and expanding opportunities.
Complementing these figures, North Carolina boasts the fourth-best workforce in the nation, according to CNBC, with significant in-migration of college-educated professionals, particularly in science, technology, engineering, and mathematics (STEM). The state also shines for cultivating vocational talent, striking a balance that meets varied business needs.
Business Expansion Highlights
Major corporate investments reinforce the data-driven findings. For example, JetZero, an innovative startup focusing on fuel-efficient aircraft, announced a groundbreaking project to build a new aviation manufacturing hub in Greensboro, promising 14,500 jobs.
Similarly, tech giant Meta committed $10 billion towards expanding data centers in North Carolina, building on a cumulative $12 billion investment since 2010. Such commitments signal confidence in the state’s infrastructure, workforce readiness, and business climate.
The Political Consensus: Business Growth as a Bipartisan Priority
Remarkably, North Carolina’s emphasis on attracting and retaining business thrives amidst its purple state political landscape, with both Democrats and Republicans championing economic development.
Governor Josh Stein (D) highlighted in his 2025 State of the State address the importance of continuing innovation and investment to keep ahead of competitors. On the other side, Senate President Phil Berger (R) stressed that the growth didn't occur by happenstance but through deliberate policies fostering a business-friendly environment.
This bipartisanship reflects a shared understanding: economic prosperity underpins quality of life and political stability.
Business Friendliness and Worker Protections — A Mixed Picture
While North Carolina ranks impressively high in business friendliness — fourth nationwide — offering low tort liability costs and high economic freedom scores, its record on worker protections and quality of life is less stellar. The state placed 29th in quality of life metrics and ranked last in worker protection according to Oxfam International, which cited near-absence of labor safeguards.
Moreover, limited anti-discrimination protections in public accommodations reveal social challenges amid economic triumphs. This tension raises critical questions about balancing growth with equitable labor standards and social inclusion.
Challenges on the Horizon: Natural Disasters and Federal Policy Risks
Despite its strong footing, North Carolina faces significant headwinds. The devastating impact of Hurricane Helene in 2024 caused nearly $60 billion in damages and claimed 100 lives. Although recovery funds exceeding $2 billion have been allocated, the lingering economic disruption may weigh on future business confidence.
Federal policy also looms as a potential threat. Proposals to cut National Institutes of Health and National Science Foundation budgets could disrupt North Carolina's leading role in scientific research and innovation, vital pillars of its economic engine.
Additionally, Senator Thom Tillis cautioned that potential Medicaid cuts under the Trump administration could strip health insurance from over 600,000 residents, affecting workforce health and productivity.
Finally, with over 20% of the state's GDP linked to international trade in goods, North Carolina remains vulnerable to tariff policies, which can raise costs and complicate supply chains.
Comparative Landscape: Other Top and Bottom States in 2025
In this year’s rankings, Texas claims the runner-up position, excelling in workforce attraction but struggling with quality of life issues such as healthcare coverage and crime. Florida, maintaining third place with the strongest economy rating, grapples with rising costs fueled by growth and post-pandemic adjustments.
Virginia slips to fourth yet remains strong in education and infrastructure, while Ohio breaks into the top five, led by outstanding infrastructure ratings and a large accessible population base.
Massachusetts shines as the year’s most improved, despite challenges related to the high cost of doing business and federal funding cuts. Its relatively low dependence on federal funding offers some financial cushioning.
At the bottom, Alaska ranks last, hampered by economic contraction and vulnerabilities tied to oil-dependent revenues. Louisiana, Rhode Island, Montana, and New York also illustrate the spectrum of challenges states face in balancing budgets, infrastructure, and workforce readiness.
CNBC's Methodology and Metrics
The CNBC Top States for Business study evaluates all 50 states against 10 weighted categories that reflect the factors most commonly cited by states themselves when attracting businesses. These categories include economy, infrastructure, workforce, cost of doing business, business friendliness, quality of life, technology and innovation, education, access to capital, and cost of living.
North Carolina scored a total of 1,614 out of 2,500 points, edging out other contenders by demonstrating consistent strength across the board.
Editor’s Note
North Carolina’s sustained leadership in business rankings highlights the critical interplay between a diverse workforce, forward-thinking governance, and strategic economic investments. Yet the state's challenges in worker protections and quality of life reveal ongoing tensions that many fast-growing regions face. As federal policy landscapes shift and environmental threats loom, North Carolina and comparable states must navigate complex trade-offs between competitiveness, social equity, and resilience. Observers and policymakers alike would benefit from focusing not only on headline economic numbers but also on inclusive growth and sustainable development to secure long-term prosperity.
