Alabama moved up one spot in CNBC’s annual “Top States for Business” rankings, coming in this year at No. 19 overall in the 2025 report released on Thursday.
The state’s latest gain comes after last year’s performance in which Alabama was ranked as “most improved” in the nation.
RELATED: CNBC: ‘Alabama is America’s most improved state for business in 2024’
The biggest driver behind this year’s improvement was Alabama’s eight-place jump in the workforce category.
CNBC cited growth in the availability of skilled labor and improvements in workforce development and readiness programs. The state also clocked a one-spot gain in the cost-of-living category.
Despite the gains, Alabama continued to lag in access to capital and education, and also reported a puzzling decline in the infrastructure category from No. 8 to No. 28.
RELATED: Alabama solving manufacturing’s real estate problem
The gains made particularly in workforce development have been an intentional byproduct of state leaders in recent years. Lawmakers and Governor Kay Ivey have enacted landmark legislative packages that address challenges ranging from the state’s labor force participation rate and industrial site development to workforce readiness and accelerating energy infrastructure.
RELATED: ‘Working for Alabama’ signed into law as state sets course for economic, workforce growth
Legislation passed earlier this year, Powering Growth, is expected by state leaders to drive gains in the state’s ability to rapidly build energy infrastructure.
Grayson Everett is the editor in chief of Yellowhammer News. You can follow him on X @Grayson270.
