News Summary
Alabama has improved its position to 19th in CNBC’s 2025 ‘Top States for Business’ rankings, showcasing significant gains in workforce metrics despite challenges in quality of life and capital access. The state achieved a total score of 1,337 points out of 2,500, reflecting its efforts in economic development. The Powering Growth Act of 2025, alongside stable corporate tax rates, bolsters its business-friendly environment, contributing to a consistent job market with an unemployment rate of 3.3%.
Alabama has advanced to the 19th position in CNBC’s 2025 “Top States for Business” rankings, marking an improvement from its 2024 ranking. This elevation is attributed primarily to enhancements in its workforce metrics, showcasing the state’s commitment to economic development.
In total, Alabama achieved a score of 1,337 out of a potential 2,500 points. The evaluation process assessed 135 metrics across 10 categories, which include cost of doing business, workforce quality, and overall quality of life. In this year’s report, Alabama excelled particularly in the cost of living category, securing the 6th position nationally, and demonstrating its business-friendly environment by ranking 13th.
One of the most notable improvements was seen in the state’s workforce ranking, which leaped from 24th in 2024 to 16th in the current rankings, showcasing an eight-place gain. However, Alabama’s performance in other categories revealed some challenges. The state ranked 44th in quality of life and 40th in access to capital, experiencing a significant drop from 29th in the previous year. This decline has raised concerns regarding the availability of funding for businesses operating within the state.
Alabama’s infrastructure ranking also saw a sharp decline, falling from 8th to 28th, highlighting issues that may affect the state’s overall business environment. Despite this setback, the education ranking for Alabama remained stable at 16th, indicating a strong foundation in educational resources.
In the broader spectrum, Alabama was recognized in the previous year’s rankings as the “most improved” state in the CNBC assessment. This accolade reflected the ongoing efforts by state leadership to foster an environment conducive to business growth, particularly under the administration of Governor Kay Ivey since 2017. Her administration has focused on enhancing economic opportunities through various initiatives and legislation.
The top 10 states in CNBC’s rankings included North Carolina, Texas, Florida, Virginia, Ohio, Michigan, Georgia, Tennessee, Indiana, and Minnesota, reflecting a diverse range of states that have established favorable conditions for businesses.
Additionally, the Powering Growth Act of 2025, which includes the newly established Alabama Energy Infrastructure Bank, is expected to address energy infrastructure challenges and may contribute positively to future business evaluations.
As part of its economic framework, Alabama maintains a corporate tax rate of 6.5% and a maximum individual income tax rate of 5%. These financial metrics are designed to enhance the attractiveness of Alabama as a business destination.
As of May 2025, the state reported an unemployment rate of 3.3%, indicating a stable job market relative to other states in the nation. The combination of workforce improvements and strategic economic policies reflects Alabama’s ongoing efforts not only to rise in state rankings but also to create a vibrant, sustainable business environment.
Deeper Dive: News & Info About This Topic
- Alabama Reporter
- Wikipedia: Alabama
- Alabama Daily News
- Google Search: Alabama business rankings
- Yellowhammer News
- Google Scholar: Alabama business rankings
- Made in Alabama
- Encyclopedia Britannica: Alabama business
Author: STAFF HERE HUNTSVILLE WRITER
The HUNTSVILLE STAFF WRITER represents the experienced team at HEREHuntsville.com, your go-to source for actionable local news and information in Huntsville, Madison County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Panoply Arts Festival, Rocket City Brewfest, and Huntsville Comic & Pop Culture Expo. Our coverage extends to key organizations like the Huntsville/Madison County Chamber of Commerce and HudsonAlpha Institute for Biotechnology, plus leading businesses in aerospace, defense, and manufacturing that power the local economy such as Boeing, SAIC, and Mazda Toyota Manufacturing. As part of the broader HERE network, including HEREBirmingham.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
