Every year, CNBC releases its Best States for Business rankings, sparking both celebration and controversy. These rankings are designed to help businesses decide where to set up shop, but do they accurately reflect economic reality? Recent data suggests a significant disconnect between CNBC’s assessments and on-the-ground economic conditions.
For instance, in 2026, CNBC ranked Virginia as the fourth best state for business. However, the state experienced one of the most substantial job losses in the nation over the past year. Only two other states saw faster job declines. While federal job cuts played a significant role, Virginia also lost manufacturing jobs at a rate unmatched by any other state. This stark contrast raises questions about the relevance of such rankings.
Migration Trends vs. CNBC Rankings
Another area where CNBC’s rankings seem out of sync is in migration patterns. U-Haul’s annual Growth Index provides a snapshot of where Americans are moving. In recent years, states like TexasFloridaTennessee and the Carolinas have dominated this list. Notably, seven of the top 10 growth states have Republican governors, and nine of these states voted red in the last presidential election. Conversely, nine of the bottom 10 growth states have Democratic governors, with seven voting blue.
This migration trend starkly contrasts with CNBC’s rankings, which placed Vermont at the top of its Best States to Live list. Vermont, along with NebraskaNew Jersey and most of New England was lauded for its reproductive rights inclusiveness, and workers’ rights to organize. However, these factors do not seem to align with where people are actually choosing to live. For example, Vermont has the highest property tax burden in the United States and ranks high in personal income tax rates, factors that CNBC’s report notably downplayed.
The Criteria Conundrum
The criteria used by CNBC to determine its rankings often come under scrutiny. For instance, the inclusion of reproductive rights as a key factor in determining the best states to live raises eyebrows. While Minnesota was praised for its strong guarantees of reproductive rights, this metric does not necessarily correlate with the number of people moving to the state. Similarly, Vermont’s ranking as the best state to live is perplexing given its struggles with homelessness and its lack of diversity and religious communities.
Vermont’s homelessness crisis is particularly concerning, with over 3,000 people unhoused as of January 2026 in a state with just 644,000 residents. The state’s harsh winters and the perception of safety issues in cities like Burlington further complicate its appeal. Additionally, Vermont’s lack of religious communities and limited access to popular fast-food chains and retail stores like Target may deter potential residents.
The Ohio Paradox
Ohio’s recent top ranking by CNBC as the best state for business has also sparked debate. Republican leaders in Ohio celebrated the ranking as proof of their economic policies’ success. However, critics argue that the ranking does not reflect the severe financial difficulties faced by many Ohioans. The think tank Policy Matters Ohio pointed out that many of the state’s policies since 2005 have favored corporations and the wealthy, cutting $17 billion in state tax revenue. This has left moderate-income Ohioans struggling with affordability crises and reduced support from the state.
The CNBC ranking is based on how states market themselves to businesses, not on objective economic conditions. For example, Ohio’s ranking was influenced by its infrastructure and geographic advantages, such as having 143 million people within a day’s drive. However, the ranking de-emphasized factors like education, which is crucial for businesses but not heavily promoted by states in their marketing materials. This approach raises questions about the relevance of such rankings to the average resident’s quality of life.
The stark disagreement over the benefits of GOP economic policies highlights the need for a more nuanced understanding of state business rankings. While these rankings can provide valuable insights for businesses, they may not accurately reflect the economic realities faced by residents. As such, it is essential to consider multiple sources of information when assessing the best states for business and living.
