Connecticut improved this year in CNBC’s annual ranking of America’s Top States for Business, inching closer to the middle overall, and ahead of neighboring states New York and Rhode Island.
The Nutmeg State ranked No. 31 in 2023, jumping eight spots from its No. 39 showing in 2022.
CNBC’s annual ranking evaluates all 50 states based on 86 metrics in 10 categories of competitiveness, including their workforce, infrastructure, economy and cost of doing business.
Connecticut’s recent improvement was driven by higher scores in technology and innovation (+12 spots); life, health and inclusion (+7); and cost of living (+9).
However, the state lost ground in the categories of workforce (-7 spots), business friendliness (-5) and education (-5).
Chris DiPentima, CBIA’s president and CEO, said the annual business climate rankings “set the standard for measuring a state’s ability to compete and should be essential reading for all policymakers and economic development officials.”
“(It’s) heartening to see Connecticut’s improved ranking this year, despite the lower workforce and education scores — two traditional areas of strength,” DiPentima said. “The 2023 study clearly shows where the opportunities lie for further improving our business climate, particularly with affordability, cost of doing business and overall economic growth.”
The economy and cost of doing business in Connecticut ranked among the worst in the nation, though slightly better than last year. In 2023, the state’s economy ranked No. 42 (up from No. 47 in 2022) and its cost of doing business was No. 43 (up from No. 45 in 2023).
For the second year in a row, North Carolina topped the list, with the No. 1 overall ranking and top showings in the categories of workforce (No. 1), economy (No. 3), technology and innovation (No. 6), business friendliness (No. 10 – only one place above Connecticut), education (No. 7) and access to capital (No. 6).
The other top five states were Virginia, Tennessee, Georgia and Minnesota – in that order.
Massachusetts, the top-ranked state in New England at No. 15, scored the No. 1 ranking for technology and innovation. New York ranked No. 20 overall.
The lowest-ranked state was Alaska, dropping from No. 49 in 2022 to dead last.
The full results are below:
