Texas ranks third for business among US states in 2024, CNBC study reports

Alexis Simmerman, Austin American-Statesman
·2 min read

Texas is the third-best state for business, according to a 2024 study.

In addition to earning a metaphorical bronze medal among U.S. states, the Lone Star State also claimed the top spot in "Workforce" as well as "Technology & Innovation" in CNBC's annual America's Top States for Business study.

For the first time since CNBC began the rankings in 2007, infrastructure is the heaviest-weighted category. Workforce had previously been the deciding category for a decade but is slightly less critical now that the labor market has eased. The rise of artificial intelligence (AI) and the insurance crisis have also played significant roles in the 2024 rankings.

Texas ranks No. 1 for Workforce

Texas scored 297 out of 375 points for the "Workforce" category, earning an A+. Following behind in second and third were Florida and North Carolina, respectively. This category considered the following:

  • Percentage of science, technology, engineering and mathematics (STEM) workers.

  • Percentages of employees with college and associate degrees, as well as those with industry-recognized certificates.

  • Success in attracting talent of all levels and the net migration of educated workers to the state.

Texas ranks No. 1 for Technology & Innovation

In "Technology & Innovation," Texas earned another A+ with 207 out of 250 points. The Lone Star State tied with New York for the top seat, with Massachusetts coming in third. In comparing states, CNBC's study analyzed the following:

  • Results, including the number of issued patents per capita.

  • Health, science and agriculture research grants.

  • Role in the advancement of AI.

  • Participation in the Tech Hubs program through the Biden Administration's CHIPS and Science Act.

Laura Kilcrease, founding executive director of the Austin Technology Incubator and CEO of Alberta Innovates, was honored as an inductee at the Tech Hall of Fame ceremony Tuesday, June 3. Kilcrease also accepted the award on behalf of her dear friend George Kozmetsky.
Laura Kilcrease, founding executive director of the Austin Technology Incubator and CEO of Alberta Innovates, was honored as an inductee at the Tech Hall of Fame ceremony Tuesday, June 3. Kilcrease also accepted the award on behalf of her dear friend George Kozmetsky.

Texas ranks last for Quality of life

Though faring quite well relative to other states, the business scene in Texas could also improve in some areas. It ranked the worst (50th) in "Quality of life," with a meager 75 out of 325 points. The category used data for the following:

  • Livability factors such as crime rates, environmental quality and healthcare.

  • Worker protections, including voting rights and protections against discrimination.

  • Availability and affordability of childcare.

  • Condition of reproductive rights.

LIST: Top 10 U.S. states for business

CNBC's 2024 rankings of states for business named the following as the top 10 overall:

  1. Virginia

  2. North Carolina

  3. Texas

  4. Georgia

  5. Florida

  6. Minnesota

  7. Ohio

  8. Tennessee

  9. Michigan

  10. Washington

This article originally appeared on Austin American-Statesman: Texas ranks third in CNBC's 2024 list of best US states for business