N.J. drops 5 spots in CNBC’s 2025 Top States for Business ranking (to No. 30)

New Jersey dropped five spots in CNBC’s 2025 Top States for Business ranking, placing No. 30 overall. The rankings were released Thursday morning.

New Jersey fell below its neighboring states of New York (No. 23) and Pennsylvania (No. 17) in the list, which rates states on 10 categories, everything from cost of doing business to cost of living — infrastructure to education.

While New Jersey continued to rank well in weighted areas like quality of life (3rd), education (7th) and access to capital (11th), it ranked poorly in business friendliness (49th) and cost of doing business (38th).

In 2023, New Jersey had risen to No. 19 on the list, climbing 23 places from the previous year and in 2024 it was ranked No. 25.

“Like many of the states in this national ranking, New Jersey has much to be proud of and concerned with as it relates to business,” NJBIA President and CEO Michele Siekerka said. “We continue to be encouraged by our rankings in more foundational metrics like quality of life and education. We also saw good improvements in technology and innovation and infrastructure.

“What’s most frustrating, however, is the continuation of our bottom-of-the-pack ranking for business friendliness and non-competitive rankings for both cost of doing business and cost of living.

Tom Bracken, president & CEO, New Jersey Chamber of Commerce said the results of CNBC’s 2025 Top States for Business rankings were disappointing, but not surprising.

“These rankings reflect what many in the business community have long known: there is a lack of focus in New Jersey on economic growth and creating a welcoming environment for businesses,” Bracken said.

“Our state leaders must take a hard look at the factors CNBC uses to assess Business Friendliness and understand why other states are winning the race for jobs and investment. New Jersey has the potential to lead, but that will only happen if we adopt bold, pro-growth reforms and make competitiveness a top priority,” he said.

Bracken also said New Jersey’s next governor will need to make restoring New Jersey’s business climate a top priority.

“Our future depends on a healthy, competitive economy that creates jobs, fuels innovation, and generates the tax revenue needed to support strong communities. New Jersey’s business community is ready to lead. It’s time for our government to be an active, engaged partner in building the future we all want,” Bracken said.

The states ranking highest in CNBC’s Top 10 for 2025 includes:

1. North Carolina
2. Texas
3. Florida
4. Virginia
5. Ohio
6. Michigan
7. Georgia
8. Tennessee
9. Indiana
10. Minnesota

To see the full CNBC Top 10 States for Business report, click here.