Virginia no longer ranked as America’s top state for business

RICHMOND, Va. (WRIC) -- Virginia is no longer America’s top state for business. 

“North Carolina, Florida, Texas, they had a slightly better run, but what we’re talking about is a fraction of a point's difference getting us to this place,” John Provo, Executive Director of Virginia Tech’s Center for Economic and Community Engagement, told 8News. 

Virginia has fallen to number four in the latest CNBC rankings, after claiming the top spot in 2024. In fact, fourth is the lowest Virginia has been ranked since 2018. 

CNBC is putting some of the blame on President Donald Trump’s efforts to cut the size of the federal workforce. 

“I think how loss of federal employment and federal contracting jobs impacts the overall budget prospect for Virginia is probably going into that figure as well,” Provo explained. 

CNBC also pointed out that Virginia’s unemployment rate has risen in recent months, something Provo said could lead to consumers spending less money at Virginia businesses. 

“We have seen some loss of employment, for example, in some manufacturing companies who are particularly consumer-facing. They’re forecasting out and having to slow their role on employment because of uncertainty about what the markets are gonna be like this time next year,” Provo said.

However, despite that, Provo said Virginia remains a good place to start or expand a business. 

“If Virginia was one of my students, I would tell them, hey, you’re still at the head of the class, let’s buckle down and focus on some fundamentals, and focus on ourselves, and that’s how we’ll be more competitive,” Provo told 8News. 

North Carolina replaced Virginia as the top state for business.