Texas Leads the Way as America’s Top State for Workforce in 2024
Amid a cooling economy and a more balanced job market, finding the right talent remains a top priority for businesses across the nation. While the labor shortage is easing somewhat, the need for skilled workers continues to be a key factor in determining where companies choose to invest and grow. In CNBC’s annual America’s Top States for Business ranking, workforce development plays a crucial role, accounting for 15% of a state’s overall score. This year, Texas emerges as the clear winner in the talent wars, showcasing a strong combination of a highly skilled and productive workforce, robust talent attraction, and impressive economic growth.
Key Takeaways
- Texas: The Lone Star State reigns supreme in workforce development, attracting a massive influx of college-educated workers and boasting a consistently strong economy. The state stands out for its powerful talent magnet, pulling in a significant number of skilled professionals.
- Florida: The Sunshine State makes a remarkable leap in 2024, improving its ranking in workforce development programs significantly. This surge is attributed to a dedicated focus on workforce education programs and a strong talent pool.
- North Carolina: The Tar Heel State maintains a strong position in workforce development with a well-rounded workforce. However, the state faces a slight decline in its ranking due to a slight decrease in the availability of qualified workers compared to job openings.
- Top 10 states: The top 10 states in workforce development demonstrate a balanced focus on attracting and fostering skilled talent, emphasizing factors like educational attainment, career education credentials, and STEM worker concentration.
Understanding the Workforce Score
CNBC’s America’s Top States for Business considers multiple factors when evaluating a state’s workforce strength:
- Educational Attainment: The number of residents with a bachelor’s degree or higher.
- Career Education Credentials: The percentage of residents with industry-recognized credentials.
- STEM Workers: The concentration of professionals in science, technology, engineering, and mathematics fields.
- Career Education Pipeline: The effectiveness of state workforce training programs.
- Worker Attraction: The success of a state in attracting skilled workers from other states and countries.
- Labor Productivity: The economic output generated per worker.
- Right-to-Work Laws: States with right-to-work laws allow employees to choose whether or not to join a union.
The Top 10 States for Workforce in 2024
Here’s a breakdown of the top 10 states and the factors contributing to their success:
10. Nevada
Nevada, despite its high unemployment rate, boasts a thriving talent pool and a strong emphasis on career education. However, the state faces a significant shortage of STEM workers and college-educated employees.
- Workforce Score: 227 out of 375 points (C+)
- Net Migration Rank: 16th
- Adults with Bachelor’s Degree or Higher: 26.5%
- Career Education Credential: 16.1%
- STEM Workers: 3.9%
- Right to Work State? Yes
9. Virginia
Virginia is renowned for its highly educated workforce, particularly in STEM fields. While the state excels in worker training programs, it faces challenges in attracting and retaining skilled workers, leading to a relatively low net migration.
- Workforce Score: 232 out of 375 points (C+)
- Net Migration Rank: 41st
- Adults with Bachelor’s Degree or Higher: 41%
- Career Education Credential: 14.7%
- STEM Workers: 9.3%
- Right to Work State? Yes
8. Tennessee
The Volunteer State boasts exceptional workforce development programs, with a high success rate in placing graduates in jobs. However, Tennessee faces a shortage of educated workers and a low concentration of STEM professionals.
- Workforce Score: 236 out of 375 points (C+)
- Net Migration Rank: 10th
- Adults with Bachelor’s Degree or Higher: 29.7%
- Career Education Credential: 15%
- STEM Workers: 5%
- Right to Work State? Yes
7. Delaware
The First State stands out for its highly productive workforce, as evidenced by its high economic output per worker. Delaware is also attracting skilled workers, but faces challenges in growing its workforce overall.
- Workforce Score: 243 out of 375 points (B-)
- Net Migration Rank: 12th
- Adults with Bachelor’s Degree or Higher: 34.5%
- Career Education Credential: 13.3%
- STEM Workers: 6.9%
- Right to Work State? No
6. Arizona
Arizona benefits from the rapid growth of its semiconductor industry, which is attracting skilled workers. Despite a labor shortage, the state is actively addressing it through programs like Future48 Workforce Accelerators.
- Workforce Score: 257 out of 375 points (B+)
- Net Migration Rank: 3rd
- Adults with Bachelor’s Degree or Higher: 31.8%
- Career Education Credential: 21.9%
- STEM Workers: 6.9%
- Right to Work State? Yes
5. Washington
The Evergreen State boasts the highest concentration of STEM workers in the nation, fueled by its thriving technology sector. While Washington’s workforce is highly skilled and productive, its worker training programs lag behind, with a low success rate in placing graduates in jobs.
- Workforce Score: 260 out of 375 points (B+)
- Net Migration Rank: 5th
- Adults with Bachelor’s Degree or Higher: 38%
- Career Education Credential: 18%
- STEM Workers: 10.5%
- Right to Work State? No
4. Georgia
Georgia’s well-established Georgia Quick Start worker training program has helped the state develop a strong pipeline of skilled labor, mitigating brain drain. However, Georgia’s workforce ranks in the middle of the pack for educational attainment and lacks a significant concentration of tech workers.
- Workforce Score: 264 out of 375 points (B+)
- Net Migration Rank: 8th
- Adults with Bachelor’s Degree or Higher: 33.6%
- Career Education Credential: 16.4%
- STEM Workers: 5.9%
- Right to Work State? Yes
3. North Carolina
North Carolina’s workforce remains well-rounded, but faces a slight decline in its ranking due to a shrinking pool of available workers compared to job openings. Despite strong net migration, the state’s labor force participation rate hasn’t fully recovered to pre-pandemic levels.
- Workforce Score: 269 out of 375 points (A-)
- Net Migration Rank: 6th
- Adults with Bachelor’s Degree or Higher: 35.9%
- Career Education Credential: 16.7%
- STEM Workers: 7.1%
- Right to Work State? Yes
2. Florida
Florida makes a significant leap in 2024 due to significant improvements in its workforce development programs. The state saw a dramatic increase in the success rate of its training programs, positioning itself as a top destination for workforce development.
- Workforce Score: 282 out of 375 points (A)
- Net Migration Rank: 1st
- Adults with Bachelor’s Degree or Higher: 32.3%
- Career Education Credential: 19.4%
- STEM workers: 5.4%
- Right to Work State? Yes
1. Texas
The Lone Star State takes the top spot for workforce development, due to its continued economic growth and its ability to attract large numbers of skilled workers. The state’s economic dynamism and talent magnet status make it a prime location for businesses and workers alike.
- Workforce Score: 297 out of 375 points (A+)
- Net Migration Rank: 3rd
- Adults with Bachelor’s Degree or Higher: 32.3%
- Career Education Credential: 15.5%
- STEM Workers: 7%
- Right to Work State? Yes
Conclusion
As companies continue to grapple with a tight labor market and seek skilled workers, states with strong workforce development programs are emerging as key competitive advantages. The top 10 states in this year’s ranking demonstrate a commitment to attracting, training, and retaining a highly skilled and productive workforce. These factors are crucial for driving economic growth and ensuring long-term business success.
