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 Loses Ground in Business Rankings: A Friendly Look at the Latest Developments
Texas has slipped to second place in the latest rankings for America’s Top State for Business, with North Carolina taking the top spot for 2025. This marks the first time North Carolina has ranked first in three of the last four years, leading to celebrations in the Tar Heel State.
A Peek at the Rankings
Since the inception of the rankings in 2007, Texas has consistently been a top performer, finishing in the top six every year. The last time Texas held the number one position was in 2018. The reasons behind the latest ranking shift reveal both strengths and weaknesses in Texas’s business environment.
Texas achieved its highest score for workforce, landing in first place with an astonishing 15.8 million workers, a key element in the state’s robust economy. Nevertheless, this wasn’t enough to outshine North Carolina, which received notable rankings of third in economy, fourth in workforce, and fourth in business friendliness.
The Good and the Bad
Texas still has several advantages, but it faces significant challenges. The state ranked poorly in quality of life at 49th, indicating concerns over living conditions for residents. Additionally, it came in at 26th for infrastructure, highlighting issues that may affect the overall business climate. In contrast, North Carolina is making strides with developments like a new factory in Greensboro projected to create 14,500 jobs and a $10 billion data center expansion by Amazon.
Job Growth in the Lone Star State
Job growth remains a strong point for Texas, which boasts a 4.1% unemployment rate, slightly above the national average of 4%. In the Dallas-Fort Worth area, the jobless rate is even lower, recorded at approximately 3.7%. This area exemplifies the vital role it plays within the state, as it is home to roughly 30% of the Texas workforce.
The Dallas-Fort Worth Advantage
The Dallas-Fort Worth region has earned the nickname “headquarters of headquarters.” This recognition comes from its ability to attract numerous companies looking to relocate from other regions. Texas continues to excel with strong global connectivity, aided by DFW Airport and the deep-water ports in Houston. Trade routes extending into Mexico further enhance the state’s appeal for businesses intending to broaden their market reach.
Challenges Ahead
Despite Texas’s strengths, economic analysts caution that the low rankings in quality of life, infrastructure, and business friendliness may pose challenges to future business growth. Addressing these shortcomings could be crucial as Texas aims to maintain its reputation as a business-friendly environment.
Looking to the Future
Although Texas has dropped from its top ranking this year, it is still recognized for its business climate. For instance, the state claimed the title in Site Selection magazine’s “Top State Business Climate” for 2024, reminding stakeholders that Texas remains an attractive place for conducting business.
In summary, while Texas may be facing a momentary setback, it retains many positive attributes, including a strong workforce and a dynamic economic landscape. The state’s ability to bounce back and reclaim the top position will depend on addressing its current challenges. With a proactive approach, Texas can continue to thrive and attract business in the future.
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 AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis 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 SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
