Governor Glenn Youngkin has lost one of his favorite bragging rights—Virginia ranking as the Top State for Business.
CNBC has produced the rankings since 2007. Virginia topped every state in the nation in 2024 and has been in the top 3 for the last three years.
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Not only has Youngkin repeatedly pointed to Virginia’s #1 ranking over the past year, but he’s had the news tacked to the top of his website since last summer. And it’s still there.
“Over time, no state has performed better than Virginia,” which has claimed the #1 spot six times, CNBC acknowledged. “But in 2025, with economic anxiety rising, Virginia’s economic situation is just shaky enough to take it down a few pegs.”
This year, Virginia slid downhill to #4 while its southern neighbor, North Carolina, took the crown.
According to CNBC, a major reason for Virginia’s descent is its economy, the heaviest-weighted category in the study.
A major problem with the Commonwealth’s economy is federal job cuts.
When considering how much of the total state workforce is federal employees, Virginia is 3rd, not including federal contractors. Bureau of Labor Statistics data shows Virginia is one of only three states whose unemployment rose month-over-month in May.
Further dimming the light on Virginia is that many federal job losses aren’t reflected in the numbers yet, those jobs losses are expected to increase, and the state is expected to feel ripple effects, such as reduced consumer spending.
Although federal job cuts helped dethrone Virginia’s business ranking, it’s a move the governor supports. Youngkin believes it “has to happen,” and he’s said Virginia has enough jobs for everyone who loses a job to get another one.
WATCH:
Youngkin Announces ‘Jobs for Everyone’ Who Chooses Virginia
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