Forbes’ Best States For Business: See Texas Ranking

AUSTIN, TX — Texas ranks a strong second place in the country for business among U.S. states, according to a new report from Forbes. The business publication compiled its "Best States For Business" list in December.

In a press release, researchers explained the rankings were calculated based on 40 metrics across six main categories: Business costs, labor supply, regulatory environment, economic climate, growth prospects and quality of life.

Given that reckoning, here's how Texas was assessed across the main categories:

• Business Costs: 3
• Labor Supply: 10
• Regulatory Environment: 21
• Economic Climate: 4
• Growth Prospects: 1
• Quality of Life: 15

Here are some dynamics that propelled the state near the top of the list, one notch before top-ranked North Carolina:

• Population: 28,701,800
• Median Household Income: $62,263
• Job Growth (2019): 2.4 percent
• Cost of Doing Business: 10 percent below national average
• College Attainment: 29.6 percent
• Net Migration (2018): 202,400
• Moody's Bond Rating: Aaa

Rounding out the top ten, in descending order, were Utah, Virginia and Florida, Georgia, Tennessee, Washington, Colorado and Idaho.

"The $1.9 trillion Texas economy is the second biggest in the U.S., behind only California," researchers noted. "Texas ranks fourth for current economic climate and first for its growth prospects, thanks to strong employment and income growth forecasts for the next five years. In addition, there are over 100 of the 1,000 largest public and private companies in the U.S. based in Texas, including giants like AT&T, ExxonMobil and Dell."

At the opposite end of the spectrum, Alaska ranked as the nation's worst state for business. The bottom five were rounded out by West Virginia, New Mexico, Hawaii and Louisiana.

Click here for the full report, including the methodology used.