Economic Business Trends: Texas To Receive Top Ranking

According to Forbes, Texas has now been ranked as the second best state for conducting business in within the United States. In actuality, the state ranked No. 1 last year for its economic climate and was in second place on the Forbes’ list of Best States To Do Business in for 2017. All of these rankings were due in part for the strong employment rates in the state and for the amount of gross product growth over the previous five years.

Moving Up In Rankings

From last year’s ranking, Texas moved up two spots on the list. This is their best ranking ever since 2006. While displaying the list, Forbes also was sure to report the state’s multi-trillion dollar economy. The economy in Texas is the second largest for the country. It is also home to 100 out of the 1,000 largest private and public companies in the United States. These companies included giants such as ExxonMobil, Dell and AT&T. The report from Forbes also indicates that the amount of startup activity in the state of Texas is one of the best in the nation when compared to other large states. This was as a result of findings from the Kauffman Foundation.

Best States For Business

The “Best States for Business” list conducted yearly by Forbes is done based on a variety of factors. It assesses all states in the nation across six major categories. These categories may include ones such as labor supply, business costs, growth prospects, economic climate, regulatory environment- such as regarding title loans–  and the quality of life. Aside from Texas, there are five other states in the top rankings which include Nebraska, Utah, Virginia and North Carolina.

Texas Economy At A Glance

There are many factors that make Texas great for business. It has a population of over 27 million. According to a recent survey, the median income for a household is $53,000 each year. The economy value is around $1.6 trillion and is the second-largest in value for the country. The only other state that does more in their economy is California. One of the only things that is holding Texas back from being ranked in the first spot for strongest economy is the education rate among their labor supply. There is only 83 percent of Texas adults who have earned a high school degree. This is the second lowest in the United States.

Where Texas Was Just A Year Ago

During last year’s rankings, Texas fell down to No. 21 from No. 3 on the list. Many believe that the state’s oil slump around the time was the main reason. Just a few months later, the governor of the state had declared that they had the tenth-largest economy in the entire world. That declaration had been found to be mostly true. However, the governor failed to take into account the more populous state of California. Thankfully, the growth of Texas only continued to grow since then and is now ranked at the top of the Forbes list of best states to do business in. It is worth noting that state governors are not who control the economy of their respective states. It is far more complex for any type of state official to direct. Even so, the governor had his own particular rankings published for all to read in the Governing magazine.