CNBC’s America’s Top States For Business 2022: How Competitive Is CA?

CALIFORNIA — California's technology and innovation along with access to capital earned the state A+ grades in a new study by CNBC, but the Golden State's overall score was pulled down by F's in cost of doing business, business friendliness and cost of living. Combined with other categories, the state came in at No. 29 in America’s Top States for Business in 2022, the business and financial news network CNBC’s annual competitiveness ranking.

Last year, California ranked 33 in the competitiveness rankings, weighted according to the frequency states use attributes such as the strength of the workforce, the state of infrastructure development and the cost of doing business as selling points in their economic development materials, CNBC said.

In all, CNBC measured how well the states performed across 88 metrics in 10 categories. For the first time, child-care resources and support for emerging industries such as cryptocurrency and cannabis were included in the competitiveness rankings. States can earn a total of 2,500 points.

California accumulated 1279 points:

Workforce: 236 points, B- letter grade
Infrastructure: 197 points, C letter grade
Cost of doing business: 78 points, F letter grade
Economy: 189 points, C+ letter grade
Life, health and inclusion: 165 points, C- letter grade
Technology and innovation: 201 points, A+ letter grade
Business friendliness: 55 points, F letter grade
Education: 106 points, B+ letter grade
Access to capital: 49 points, A+ letter grade
Cost of living: 3 points, F letter grade

North Carolina topped the ranking, moving up from No. 2 last year. CNBC noted that’s partly because “political leaders in the Tar Heel State keep managing to put partisanship aside to build the nation’s strongest economy.”

Rounding out the top five were Washington, Virginia, Colorado and Texas.

To determine how well the states performed, CNBC relied on publicly available federal data, but also commissioned reports from real estate and labor market data collection firms. State economic development and financial data from each state were also used. For more, read the full methodology.