North Carolina has reclaimed the top spot in CNBC’s 2025 “Top States for Business” rankings, earning the title of America’s Top State for Business for the third time in four years . The state scored 1,614 out of 2,500 possible points, outpacing Texas in second and Florida in third .
⭐ Why North Carolina Soared to the Top
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Excelling in key categories such as economy (3rd), workforce (4th) and business friendliness (4th), the state outperformed its peers with strength in high-priority areas for companies .
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Notable investments fueling the momentum included aerospace startup JetZero with plans for a 14,500-person facility in Greensboro, and Amazon’s $10 billion data center expansion .
📊 Balanced Views: Business Gains vs Worker Concerns
While CNBC praised North Carolina as “almost unfailingly friendly to business,” the analysis also flagged the state’s weaker performance in areas affecting the workforce. Specifically, quality of life ranked just 29th and cost of living 23rd nationally .
Local commentary reflects this dual nature. One Reddit user put it bluntly:
“Top for business and worst for worker's rights... This is not a flex but an issue.”
Another: “But while North Carolina is almost unfailingly friendly to business, it is not terribly friendly to workers.”
🏛️ Political and Economic Reactions
Bipartisan praise followed the announcement:
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RN legislative leaders credited tax reforms, deregulation, and investments in education and training — changes dating back to 2011 — for the upward trajectory .
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Governor Josh Stein (D) thanked former Governor Roy Cooper and lawmakers from both parties for building a climate conducive to growth, highlighting North Carolina’s network of research universities, top-tier community colleges, infrastructure, and low corporate tax rates .
The state’s economy continues to swell, with over $17 billion in planned capital investment and more than 20,000 new jobs announced since January 2025. Employment in the clean energy sector alone now exceeds 100,000 across North Carolina .
🔍 Context in the National Competition
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Virginia, last year’s champion, slipped to 4th place, down from a record six-time winner, largely due to its heavy reliance on federal employment at a time of federal budget cuts and workforce reductions.
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Michigan climbed to 6th place, its highest rank ever, boosting its profile with an emphasis on workforce development and cost competitiveness .
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Connecticut improved to No. 28, rising on strong marks in education and life quality while still grappling with high costs and infrastructure gaps .
📈 What It All Means
CNBC’s methodology relies on 135 metrics across 10 categories, each weighted by how frequently states promote those categories in their economic development outreach . North Carolina’s dominance reflects not just solid economic fundamentals, but a deliberate alignment between its development strategy and what businesses value.
The state’s low business tax — among the most competitive in the nation — alongside fiscal discipline and a priority on workforce partnerships, has clearly paid off over the long term .
North Carolina’s top ranking in CNBC’s 2025 study underscores its strategic positioning as a hub for investment, innovation, and opportunity. Yet it also highlights a growing tension: prioritizing business climate may come at the expense of worker protections and quality of life.
As the state moves forward, key questions loom: How will North Carolina balance its economic strengths with rising concerns over livability, affordability, and equity? Can it sustain momentum without alienating the labor force that underpins its success?