CNBC recently released its “America’s Top States for Business 2024” report where it ranked all 50 states using a variety of metrics in these seven categories:
- Infrastructure
- Workforce
- Economy
- Quality of Life
- Cost of Doing Business
- Technology and Innovation
- Business Friendliness
10 States With the Best Economies In 2024
Focusing on just the economy part of the report, here are the top 10 states in reverse order and why they ranked as they did.
10. Delaware
Due to its corporate-friendly legal system, Delaware added 55,000 new businesses in 2023 according to the Census Bureau.
- Economy Score (Out of a possible 350 points): 231
- GDP: $74,3 billion (down 1.2%)
- Projected Job Growth: 1.2%
- Foreign Direct Investment: $276 million
- Major Corporate Headquarters: Dupont De Nemours, Incyte
Top Industries:
- Finance and Insurance: Delaware is known for its favorable corporate tax laws, making it a hub for financial institutions and insurance companies. Many major banks and credit card companies are headquartered here.
- Healthcare and Social Assistance: Delaware has a strong healthcare sector, with major hospitals and healthcare providers serving the region.
- Chemical Manufacturing: The state has a long history in chemical production, especially with companies like DuPont, which was founded in Delaware. Chemical and pharmaceutical companies remain significant contributors to the economy.
- Agriculture: Poultry farming is particularly prominent in Delaware, alongside other agricultural activities such as crop farming and dairy production.
- Education: Delaware’s universities and research institutions, such as the University of Delaware, play a significant role in the state’s economy.
- Tourism and Hospitality: Delaware’s beaches, state parks, and historical sites attract visitors, supporting the tourism and hospitality industry.
- Information Technology: The state has seen growth in IT services and tech startups, partially driven by its business-friendly environment.
- Real Estate and Construction: Given the state’s location and population growth, real estate and construction are important industries, particularly in residential and commercial development.
9. Idaho
Business applications in this state rose 4.5% last year continuing an upward trend that dates back to 2009.
- Economy Score (Out of a possible 350 points): 232
- GDP: $94.9 billion (up 3.5%)
- Projected Job Growth: 2.5%
- Foreign Direct Investment: $0 – the only state in this list that did not have any foreign investments as of 2022.
- Major Corporate Headquarters: Micron Technology, Lamb Weston Holdings
Top Industries:
- Agriculture: Idaho is known for its agriculture, especially potatoes, which are its most famous export. The state also produces wheat, barley, sugar beets, and dairy products. Livestock farming, including cattle and sheep, is also important.
- Technology: The tech sector has grown significantly in Idaho, especially in areas like Boise. Semiconductor manufacturing, software development, and other high-tech industries have taken root, with companies like Micron Technology leading the way.
- Tourism: Idaho’s natural beauty, including mountains, rivers, and national parks, supports a robust tourism industry. Outdoor activities like skiing, hiking, and fishing attract visitors year-round.
- Manufacturing: Beyond technology, Idaho’s manufacturing sector includes food processing, lumber and wood products, and machinery. The state’s agriculture and natural resources support much of this manufacturing.
- Mining: Idaho has a history of mining, particularly for silver, gold, and phosphate. Mining continues to play a role in the state’s economy, especially in rural areas.
- Healthcare: The healthcare industry is growing in Idaho, driven by population growth and increasing demand for medical services. Hospitals, outpatient services, and elder care facilities are major employers.
- Energy: Idaho produces renewable energy, particularly hydroelectric power, which is a significant source of the state’s energy. Wind, solar, and geothermal energy are also growing sectors.
- Education: The education sector, with institutions like Boise State University and the University of Idaho, plays an important role in the economy, supporting both research and workforce development.
8. Nevada
Tax revenues in this state is running ahead of their 15-year average and new residents steadily coming into the state has fueled a strong housing market both resale and new construction – a boom if you happen to be in construction or one of the associated trade fields.
- Economy Score (Out of a possible 350 points): 233
- GDP: $192.2 billion (up 2.7%)
- Projected Job Growth: 3.8%
- Foreign Direct Investment: $6 million
- Major Corporate Headquarters: Las Vegas Sands, MGM Resorts International
Top Industries:
- Tourism and Hospitality: Nevada, especially Las Vegas, is a global hub for tourism, gaming, and entertainment. Casinos, resorts, hotels, and related services dominate the state’s economy.
- Mining: Nevada is a leading producer of gold, silver, and other minerals. The state has a long history of mining and remains one of the largest gold producers in the world.
- Construction: The construction industry is booming in Nevada, driven by ongoing developments in residential, commercial, and infrastructure projects, particularly around Las Vegas and Reno.
- Real Estate: Along with construction, the real estate sector is significant, fueled by population growth and demand for new homes, office spaces, and commercial properties.
- Energy: Renewable energy, especially solar and geothermal, is a growing industry in Nevada, thanks to the state’s sunny climate and geothermal resources.
- Manufacturing: Nevada has a growing manufacturing sector, particularly in high-tech industries. Tesla’s Gigafactory near Reno is a notable example, producing batteries and electric vehicle components.
- Logistics and Distribution: Nevada’s location and infrastructure make it a key logistics and distribution hub for the western U.S. With major highways and railroads, companies use Nevada for warehousing and distribution.
- Healthcare: As Nevada’s population grows, so does its healthcare industry, with hospitals, medical centers, and elder care services expanding throughout the state.
- Technology: The tech sector is emerging in Nevada, particularly in data centers, cloud computing, and advanced manufacturing. Tech companies are increasingly attracted to the state’s favorable business climate.
7. Georgia
Mercedes-Benz, Nestle-Purina and Adidas are only part of the foreign investments coming into the state, making this state one of the nation’s biggest attractors of international capital.
- Economy Score (Out of a possible 350 points): 244
- GDP: $661.1 billion (up 0.8%)
- Projected Job Growth: 1.2%
- Foreign Direct Investment: $9.7 billion
- Major Corporate Headquarters: Assurant, Intercontinental Exchange
Top Industries:
- Agriculture: Georgia is a leading producer of poultry, peanuts, peaches, pecans, and cotton. Agribusiness, including crop farming and livestock, is a key part of the state’s economy.
- Film and Entertainment: Georgia has become a major hub for film and television production, with Atlanta being a significant center for the industry. The state offers tax incentives that attract large-scale productions.
- Logistics and Transportation: Georgia’s strategic location makes it a major transportation hub, with Hartsfield-Jackson Atlanta International Airport being the busiest in the world. The state’s ports, particularly the Port of Savannah, are key players in global trade.
- Manufacturing: Georgia has a strong manufacturing sector, including the production of food and beverages, machinery, chemicals, automotive parts, and textiles. The state also has a growing aerospace manufacturing industry.
- Healthcare: The healthcare and life sciences industries are significant in Georgia, with major hospital systems, medical research facilities, and healthcare services driving employment and innovation.
- Technology: Georgia’s tech sector, especially in Atlanta, is growing rapidly. Fintech, cybersecurity, software development, and data centers are major areas of growth in the state’s technology industry.
- Education: Georgia’s universities and research institutions, such as Georgia Tech and Emory University, play a significant role in the state’s economy, contributing to innovation, workforce development, and research.
- Finance: Atlanta is a financial hub, especially for the fintech industry. Major financial institutions and payment processing companies, such as Global Payments and Equifax, are based in Georgia.
- Tourism: Georgia’s historical sites, natural attractions like the Blue Ridge Mountains, and cities like Atlanta and Savannah contribute to a thriving tourism and hospitality industry.
6. Utah
Eight of the 10 private sector industry groups posted job growth last year, which keeps the state’s economy on a steady upward trend.
- Economy Score (Out of a possible 350 points): 245
- GDP: $219.2 billion (up 2.5%)
- Projected Job Growth: 2%
- Foreign Direct Investment: $271 million
- Major Corporate Headquarters: Zions Bancorporation, Extra Space Storage
Top Industries:
- Technology: Utah has a rapidly growing tech sector, often referred to as “Silicon Slopes.” It includes software development, IT services, cloud computing, and cybersecurity. Major tech companies and startups have offices in areas like Salt Lake City and Provo.
- Tourism and Outdoor Recreation: Utah is known for its national parks (e.g., Zion, Bryce Canyon, Arches) and ski resorts. The tourism industry thrives year-round with visitors drawn to hiking, skiing, mountain biking, and sightseeing.
- Healthcare: Healthcare is a significant industry in Utah, driven by major hospital systems, medical research, and biotechnology. The state’s growing population fuels demand for healthcare services and innovation in life sciences.
- Financial Services: Utah is a regional hub for banking, financial services, and insurance companies. The state has a favorable regulatory environment, attracting financial institutions and credit card companies.
- Mining: Utah has rich deposits of natural resources, particularly copper, gold, silver, and coal. The mining industry plays a key role in the state’s economy, especially in rural areas.
- Manufacturing: Utah’s manufacturing sector is diverse, including aerospace, electronics, medical devices, food products, and industrial machinery. Companies in these sectors benefit from Utah’s strategic location and skilled workforce.
- Education: Utah’s universities and research institutions, such as the University of Utah and Brigham Young University, contribute significantly to the economy, supporting innovation, research, and workforce development.
- Energy: Utah has a growing renewable energy sector, with solar, wind, and geothermal power being developed. Traditional energy production, including natural gas and coal, also remains a part of the state’s economy.
- Construction and Real Estate: With rapid population growth, especially in cities like Salt Lake City, the construction industry is booming. Residential, commercial, and infrastructure development is a major economic driver.
5. Arizona
Arizona’s surging chip sector in the technology industry is not only providing a strong job growth in this field, but also supporting growth in other fields such as construction.
- Economy Score (Out of a possible 350 points): 255
- GDP: $414.3 billion (up 2.7%)
- Projected Job Growth: 2.5%
- Foreign Direct Investment: $2.8 billion
- Major Corporate Headquarters: Align Technology, First Solar
Top Industries:
- Aerospace and Defense: Arizona is a major hub for aerospace and defense industries. Companies like Raytheon, Honeywell, and Boeing have significant operations in the state, manufacturing aircraft, missiles, and defense systems.
- Technology: Arizona’s tech sector is rapidly growing, with areas like Phoenix and Tucson attracting tech companies specializing in software development, cybersecurity, data centers, and semiconductor manufacturing. Intel’s large chip manufacturing facility in Chandler is a key player.
- Tourism: Arizona’s natural attractions, including the Grand Canyon, Sedona, and Monument Valley, attract millions of tourists annually. The state’s warm climate and cultural attractions make tourism a major industry year-round.
- Healthcare: The healthcare industry is expanding due to population growth, particularly in urban areas like Phoenix and Scottsdale. Hospitals, healthcare systems, and medical research facilities are major employers.
- Construction and Real Estate: Arizona’s growing population has led to a boom in construction and real estate, with significant developments in residential housing, commercial buildings, and infrastructure projects.
- Manufacturing: In addition to aerospace, Arizona has a strong manufacturing sector, producing electronics, machinery, metal products, and food products. High-tech manufacturing, particularly semiconductors, is an important contributor to the economy.
- Mining: Arizona is one of the largest producers of copper in the U.S., along with other minerals like gold and silver. Mining remains a crucial industry, especially in rural parts of the state.
- Agriculture: Agriculture is important in Arizona, with products such as cotton, citrus fruits, and vegetables. The state’s warm climate and irrigated farmland allow for year-round farming.
- Renewable Energy: Arizona’s sunny climate makes it a leader in solar energy production, with significant investments in solar farms and renewable energy infrastructure.
4. North Carolina
While the Tar Heel State is still adding jobs to its job market, the rate has slowed since the record years of 2021 and 2022. The industries with the biggest slowdown have been the professional and business services sectors.
- Economy Score (Out of a possible 350 points): 256
- GDP: $625.7 billion (up 2.7%)
- Projected Job Growth: 1.4%
- Foreign Direct Investment: $8.3 billion
- Major Corporate Headquarters: Bank of America, Duke Energy
Top Industries:
- Agriculture: North Carolina is a leading producer of tobacco, sweet potatoes, and poultry. Other key agricultural products include hogs, soybeans, and cotton. The state has a diverse agricultural sector, contributing significantly to its economy.
- Technology: The Research Triangle, located between Raleigh, Durham, and Chapel Hill, is a major hub for technology, biotech, and life sciences. It attracts companies in software development, pharmaceuticals, and research and development.
- Manufacturing: North Carolina has a strong manufacturing base, producing textiles, furniture, chemicals, and automotive parts. Advanced manufacturing, especially in aerospace and electronics, is also growing.
- Financial Services: Charlotte is the second-largest banking center in the U.S. after New York City. Major financial institutions like Bank of America and Wells Fargo have a large presence in the state, making financial services a critical industry.
- Healthcare: The healthcare industry is booming in North Carolina, with major hospital systems, research institutions, and medical centers, such as Duke University Health System and UNC Health, driving growth. The state is also known for its cutting-edge medical research and biotech innovations.
- Education: North Carolina is home to a robust education sector, with major universities such as Duke University, the University of North Carolina at Chapel Hill, and North Carolina State University. These institutions contribute to research, innovation, and workforce development.
- Pharmaceuticals and Biotechnology: North Carolina has one of the largest biotech industries in the U.S., driven by companies involved in drug manufacturing, research, and development. The state’s Research Triangle Park is a global leader in life sciences.
- Tourism: North Carolina’s diverse landscapes, including the Blue Ridge Mountains, Outer Banks, and historical sites, attract millions of tourists annually. The tourism and hospitality industry is a key contributor to the state’s economy.
- Energy: North Carolina is investing in renewable energy, particularly in solar power, where it ranks among the top states for solar energy production. The state is also home to traditional energy industries, including natural gas and electricity generation.
3. Tennessee
The Volunteer state came out of the pandemic with an impressive 9.2% jump in their 2021 GDP; 4.8% jump in 2022. While Tennessee’s job market is cooling, its economy is growing, making its fiscal picture looking promising into the future.
- Economy Score (Out of a possible 350 points): 259
- GDP: $425.4 billion (Up 3.2%
- Projected Job Growth: 0.3%
- Foreign Direct Investment: $6.7 billion
- Major Corporate Headquarters: FedEx, AutoZone
Top Industries:
- Manufacturing: Tennessee has a strong manufacturing sector, producing automotive parts, chemicals, electronics, and food products. The state is home to major automotive manufacturing plants, including Nissan, General Motors, and Volkswagen.
- Healthcare: The healthcare industry is a major economic driver, particularly in Nashville, which is known as a healthcare hub. The city is home to HCA Healthcare and other hospital networks, as well as a growing number of healthcare startups and medical research institutions.
- Tourism: Tennessee is a major tourism destination, known for attractions like Great Smoky Mountains National Park, Graceland, and music cities like Nashville and Memphis. Tourism supports a large hospitality and entertainment industry.
- Agriculture: Agriculture remains an important industry, with key products including soybeans, corn, cotton, and livestock, especially cattle and poultry. Tennessee is also known for producing whiskey, particularly in regions like Lynchburg, where Jack Daniel’s is produced.
- Music and Entertainment: Nashville, known as “Music City,” is a global center for country music and entertainment. The state’s music and entertainment industry, which includes recording, production, and live performances, contributes significantly to its economy.
- Logistics and Transportation: Tennessee’s central location and transportation infrastructure make it a key logistics and distribution hub. Companies like FedEx, headquartered in Memphis, and other freight and logistics companies play a major role in the economy.
- Education: The presence of major universities such as Vanderbilt University, the University of Tennessee, and Middle Tennessee State University contributes to education and research, driving innovation and workforce development.
- Finance and Insurance: Financial services, including banking and insurance, have a growing presence in Tennessee, particularly in cities like Nashville, which is becoming a hub for financial technology (fintech) companies.
- Energy: Tennessee is home to traditional and renewable energy industries. The Tennessee Valley Authority (TVA) is a major player in energy production, providing electricity to the state through hydroelectric, nuclear, and other energy sources.
2. Texas
The Lone Star State has the second-fastest growing economy in the nation as a whole. Only California has more S&P companies than does this state. By all economic metrics measured, its economy will continue to grow well into the future.
- Economy Score (Out of a possible 350 points): 292
- GDP: $2.03 trillion (up 5.7%)
- Projected Job Growth: 2.1%
- Foreign Direct Investment: $20.7 billion
- Major Corporate Headquarters: Oracle, Tesla
Top Industries:
- Energy: Texas is a major player in the energy sector, with significant oil and natural gas production. The state is also a leader in renewable energy, particularly wind and solar power.
- Technology: Texas has a rapidly growing technology sector, with major tech hubs in cities like Austin and Dallas. The state is known for its software development, semiconductor manufacturing, and IT services.
- Manufacturing: Texas has a diverse manufacturing sector, including the production of electronics, aerospace components, machinery, automobiles, and chemicals. The state’s large-scale manufacturing facilities support various industries.
- Healthcare: The healthcare industry is significant in Texas, with major medical centers and research institutions, such as the Texas Medical Center in Houston, one of the largest in the world. The state’s healthcare sector includes hospitals, biotech firms, and medical research organizations.
- Finance and Insurance: Texas has a strong financial services sector, with major banking institutions, insurance companies, and investment firms headquartered in cities like Dallas and Houston.
- Agriculture: Texas is a leading agricultural producer, with key products including cattle, poultry, cotton, and a variety of crops. The state’s large ranching and farming operations contribute significantly to its economy.
- Tourism: Texas’s diverse attractions, including cultural landmarks, historical sites, and natural wonders like Big Bend National Park and the Gulf Coast, drive a robust tourism industry.
- Construction and Real Estate: The construction and real estate sectors are booming due to rapid population growth and urban development. Major construction projects include residential, commercial, and infrastructure developments.
- Transportation and Logistics: Texas’s strategic location and infrastructure support a significant transportation and logistics industry. The state’s ports, highways, and railroads facilitate trade and distribution, particularly in major cities like Houston.
1. Florida
Florida’s economy and job markets are both scorching hot right now with it adding more than 240,000 job last year alone. New business applications jumped up by 9% last year, giving new Floridians numerous new opportunities for employment.
- Economy Score (Out of a possible 350 points): 308
- GDP: $1.28 trillion (up 5%)
- Projected Job Growth: 2.5%
- Foreign Direct Investment: $9.1 billion
- Major Corporate Headquarters: CSX, Carnival
Top Industries:
- Tourism and Hospitality: Florida is a major tourism destination known for its beaches, theme parks (like Disney World and Universal Studios), and natural attractions. The tourism industry drives a significant portion of the state’s economy, supporting hotels, restaurants, and entertainment venues.
- Agriculture: Florida is a leading producer of citrus fruits, especially oranges, as well as sugarcane, tomatoes, and vegetables. The state’s agriculture industry is vital for both domestic consumption and export.
- Healthcare: The healthcare sector is significant in Florida, with numerous hospitals, research institutions, and medical facilities. The state’s large and aging population drives demand for healthcare services, including elder care.
- Financial Services: Florida has a growing financial services sector, including banking, insurance, and investment firms. Miami, in particular, serves as a major financial hub for the region.
- Real Estate and Construction: With ongoing population growth and a strong demand for residential and commercial properties, the real estate and construction industries are major contributors to Florida’s economy. The state’s favorable climate and attractive lifestyle continue to drive real estate development.
- Trade and Logistics: Florida’s strategic location makes it a key player in international trade. The state’s ports, such as the Port of Miami and Port Everglades, facilitate significant trade activities, particularly with Latin America and the Caribbean.
- Aerospace and Defense: Florida has a substantial aerospace and defense industry, with major companies involved in aircraft manufacturing, space exploration, and defense systems. Cape Canaveral and Kennedy Space Center are notable hubs for space industry activities.
- Technology: Florida’s technology sector is growing, with significant activity in software development, information technology services, and tech startups, particularly in cities like Miami, Tampa, and Orlando.
- Education: The state’s universities and research institutions, such as the University of Florida and Florida State University, play an important role in research, innovation, and workforce development.
In addition, all these states have a debt rating of AAA from Moody meaning they are viewed as being economically stable now and predicted to stay that way well into the future. For military members getting ready to get out, or veterans already out and looking for a job change, these states are ones that should be factored into your relocation and civilian employment decision.
