Connect with us

News

Tying Texas’s fifth ranking means the state has some issues that need improvement

Texas is the fifth best state in the country for business according to CNBC’s 2022 ranking. It is lifted by its workforce, innovation and economy but pulled down by its regulatory environment, limite

Published

on

According to CNBC’s ranking for 2022, Texas is the fifth best state in the union for business, helped by its workforce, innovation, and economy but hindered by its regulatory environment, inhabitants’ scant access to health insurance, and a lack of inclusive policies.

Texas continues to hold the CNBC ranking’s record of consistently placing in the top five, which it has done since 2007. This year’s ranking, which was made public on Wednesday, had North Carolina at the top.

The Texas workforce is not just exceptional, but it is also expanding quickly as businesses and residents move to the state, according to Scott Cohn, a special reporter for CNBC. But when they get there, they discover an expanding number of problems.

Companies are relocating to Texas quickly, according to a statement from Renae Eze, the press secretary for Governor Greg Abbott. 54 Fortune 500 firms now call Texas home thanks to Caterpillar’s relocation of its corporate headquarters, Eze noted.

Advertisement

Texas continues to be the best state due of its unrivaled competitive advantages, according to Eze: no company or personal income taxes, a stable regulatory environment, and a young, expanding, and skilled labor population.

Abbott frequently highlights how well the state has done in business rankings. Texas has been ranked first by Chief Executive magazine for 18 years in a row and has won the Governor’s Cup award from Site Selection magazine for 10 years.

In an email, Robert Allen, president and chief executive officer of the Texas Economic Development Corporation, echoed Abbott’s assertion that Texas “continues to be an economic powerhouse” based on the rankings.

According to Allen, Texas now has more Fortune 500 companies per capita than any other state and has one of the greatest workforces and regulatory frameworks in the country.

Advertisement

The study compares states in ten categories using data that is weighted according to how states promote themselves to businesses.

According to the research, Texas has the eighth-strongest economy and the second-strongest workforce. It ranked fourth in terms of innovation and technology.

However, the Lone Star State ranked second-worst in the country for inclusiveness, life, and health. In terms of how one state’s policies affect businesses, Texas ranked No. 34 in business friendliness.

According to Cohn, Texas has the greatest percentage of residents without health insurance and little options for child care.

Advertisement

Additionally, Texas is one of just five states without a nondiscrimination anti-discrimination law. A new abortion law is regarded as one of the most restrictive in the country, and a new election law makes it one of the hardest states in the country to vote in.

With a ranking of 28, North Carolina did not perform particularly well in life, health, and inclusiveness. Additionally, it lacks a nondiscrimination statute for individuals who are not impaired.

The study did point out that North Carolina’s leaders have put aside political differences in order to draw in business and boost the economy. Republican legislative leaders and Democratic Governor Roy Cooper collaborated to create incentive packages for businesses eager to invest in the state, and the state recently approved its first comprehensive spending plan during Cooper’s administration.

According to CNBC, North Carolina has the nation’s strongest economy and ranks fifth in terms of technology and innovation. It is the second-best state for capital access, behind Texas, where Bank of America and Truist Financial are headquartered.

Advertisement

In this year’s rating, Texas was edged out by Washington, Virginia, and Colorado. Mississippi finished lowest due to having one of the least educated labor forces in the nation and having laws that are not inclusive.

In last year’s CNBC report, Texas came in fourth place.

Advertisement