A hiring sign is displayed in an Auto Zone store window on June 25, 2025 in Austin, Texas.
Brandon Bell | Getty Images
For all its perils, artificial intelligence appears to have helped alleviate a longstanding problem in American business.
Since around 2017, other than the brief spike in unemployment during the pandemic, there were far too few workers to fill the available jobs in the U.S. But in April, according to the U.S. Chamber of Commerce, the nationwide labor shortage pretty much ended.
Thanks to the combination of a cooling job market, people finally returning to work following the pandemic, and AI taking over an increasing number of human tasks, the skills gap “has largely closed,” the Chamber says. As of May, there were 7.2 million workers available to fill 7.4 million jobs. While that still represents a modest shortage, it is a far cry from 2021 and 2022, during the so-called “Great Resignation,” when the shortages routinely totaled in the millions.
That is not to say that the U.S. does not still have a people problem. Worker shortages are still severe in some states, and economic development experts say the workforce is still a key consideration when companies make decisions about where to locate.
“The base of employment here is just not sufficient in the U.S.,” said Tom Stringer, a principal and leader of the site selection and incentive practice at Grassi Advisors in New York. “We need a whole of government approach to start getting folks technical skills and trained and out into the workforce, and that’s in every location.”
Some states are meeting the challenge, according to CNBC’s annual study, America’s Top States for Business. Workforce is one of ten categories of competitiveness on which we rank every state, worth about 13% of a state’s total score under this year’s methodology.
We consider the educational attainment of each state’s workforce, and the concentration of science, technology, engineering and math (STEM) workers in each state. We also look at the career education pipeline, state workforce training programs, and workers with industry-recognized certificates. We look at each state’s right-to-work laws. We consider which states are most successful in attracting skilled workers, and we measure the productivity of each state’s labor force.
While most did not make this year’s list of the nation’s best for all-around quality of life, these ten states are winning the talent war in 2025.
10. Tennessee
Tom Bard, right, cofounder of The Bard Distillery, fills and seals a fresh batch of bourbon alongside his team inside the distillery.
William DeShazer | The Washington Post | Getty Images
The Volunteer State is a leader in helping its workers find gainful employment. According to data reported by the state to the U.S. Department of Labor, more than 82% of participants completing the state’s worker training programs found employment within six months in 2023, the most recent data available. That is one of the best success rates in the nation. The Governor’s Investment in Vocational Education (GIVE) program invests $25 million to help fund partnerships between industry and the state’s high schools and vocational schools.
2025 Workforce Score: 214 out of 335 points (Top States Grade: B)
Net Migration Rank: No. 14
Adults with Bachelor’s Degree or Higher: 30.4%
Career Education Credential: 35.4% of degrees or certificates awarded
STEM Workers: 5.3%
Right to Work State? Yes
9. Utah
Darwin Fan | Moment | Getty Images
The Beehive State gets its nickname from the industriousness of its workers, and those workers are functioning at a high level.
Utah has among the highest concentrations of STEM workers of any state, many of them working in the fast-growing Silicon Slopes region near Salt Lake City. Since its creation in 2019, the state’s Utah Works program says it has provided 200,000 hours of specialized training to prepare workers for advanced industries.
2025 Workforce Score: 215 out of 335 points (Top States Grade: B)
Net Migration Rank: No. 48
Adults with Bachelor’s Degree or Higher: 36.9%
Career Education Credential: 30.3% of degrees or certificates awarded
STEM Workers: 7.9%
Right to Work State? Yes
8. Connecticut
Graduate Christine Keis hugs one of her professors during Sacred Heart University’s 59th Undergraduate Commencement at Hartford HealthCare Amphitheater in Bridgeport, Conn., on Saturday May 10, 2025.
Christian Abraham | Connecticut Post | Hearst Newspapers | Getty Images
Workers in the Constitution State are consistently among the most productive in the nation, accounting for more than $171,000 in economic output per job last year, according to CNBC’s analysis of U.S. Labor Department and Commerce Department data. Connecticut also boasts one of America’s most educated workforces, according to Census data.
2025 Workforce Score: 216 out of 335 points (Top States Grade: B)
Net Migration Rank: No. 33
Adults with Bachelor’s Degree or Higher: 41.9%
Career Education Credential: 22.4% of degrees or certificates awarded
STEM Workers: 6.9%
Right to Work State? No
7. Colorado
Students walk through the University of Colorado Boulder campus during a winter storm in Boulder, Colorado, U.S.
Chet Strange | Bloomberg | Getty Images
The Centennial State’s workforce is the second most educated in America, after Massachusetts. A report issued in January by Colorado’s Workforce Development Council warned that the state still faces worker shortages, which demographics could make worse as more baby boomers retire. So, the state is working on increasing access to education and training. Last year, the state passed Colorado Promise, a tax credit covering the first two years of Colorado public postsecondary institution tuition and fees for students with family incomes of $90,000 or less.
2025 Workforce Score: 222 out of 335 points (Top States Grade: B)
Net Migration Rank: No. 18
Adults with Bachelor’s Degree or Higher: 44.7%
Career Education Credential: 39.6% of degrees or certificates awarded
STEM Workers: 9.3% (2023)
Right to Work State? While not considered a right to work law, the Colorado Labor Peace Act limits unions’ ability to require a “closed shop.” In May, Gov. Jared Polis, a Democrat, vetoed an attempt to repeal the law and give unions more power to organize.
6. Arizona
Workers place packaged boxes of cherry tomatoes onto a conveyor to be placed into boxes for shipping out at the NatureSweet production facility in Bonita, Arizona on April 23, 2025.
Anna Watts | The Washington Post | Getty Images
Educated workers are flocking to the Grand Canyon State. The Census Bureau estimates nearly 92,000 adults with bachelor’s degrees or higher moved to the state in 2023, while only about 52,000 left for greener pastures. Arizona has a healthy balance of tech and skilled trade workers. But the state’s workforce development programs could use some development. More than a quarter of workers completing state-sponsored training were unable to find a job within six months.
2025 Workforce Score: 228 out of 335 points (Top States Grade: B+)
Net Migration Rank: No. 5
Adults with Bachelor’s Degree or Higher: 32.6%
Career Education Credential: 37.8% of degrees or certificates awarded
STEM Workers: 6.6%
Right to Work State? Yes
5. Washington
Boeing employees build 777 aircrafts under production at the Everett Production Facility in Everett, Washington.
Jennifer Buchanan | AFP | Getty Images
Workers in the Evergreen State are the nation’s most productive by far, accounting for more than $191,000 in economic activity per job last year. Washington also boasts America’s highest concentration of STEM jobs. Washington STEM, a statewide non-profit organization now in its 25th year, aims to get kids started early in the STEM fields. The group said that in 2024, its early education STEM grants impacted some 10,000 students statewide.
2025 Workforce Score: 229 out of 335 points (Top States Grade: B+)
Net Migration Rank: No. 9
Adults with Bachelor’s Degree or Higher: 38.8%
Career Education Credential: 43.8% of degrees or certificates awarded
STEM Workers: 10.5%
Right to Work State? No
4. North Carolina
Employees of Hilltop Farm WNC prune the apple trees.
The Washington Post | Getty Images
Educated workers vote with their feet, and they’ve made the Tar Heel State their third-most popular destination. In 2023, North Carolina tied with Texas for net migration, just behind Florida and Maine. The state Department of Commerce predicts there will be plenty of opportunity to go around, with North Carolina employers projected to add 500,000 jobs between 2022 and 2032.
2025 Workforce Score: 243 out of 335 points (Top States Grade: A–)
Net Migration Rank: No. 3
Adults with Bachelor’s Degree or Higher: 34.7%
Career Education Credential: 41.9% of degrees or certificates awarded
STEM Workers: 7.3%
Right to Work State? Yes
3. Georgia
An apartment complex under construction in Atlanta, Georgia, U.S.
Elijah Nouvelage | Bloomberg | Getty Images
The Peach State is a leader in career education, with associate’s degrees and industry-recognized certificates comprising nearly 43% of all post-secondary credentials awarded statewide, according to Advance CTE, a national non-profit advocating for career education. Nearly one-quarter of high school students are focused on vocational fields. At the same time, Georgia ranks in the top half of states for the percentage of adults with bachelor’s degrees or higher.
2025 Workforce Score: 250 out of 335 points (Top States Grade: A–)
Net Migration Rank: No. 7
Adults with Bachelor’s Degree or Higher: 34.2%
Career Education Credential: 42.6% of degrees or certificates awarded
STEM Workers: 5.9%
Right to Work State? Yes
2. Florida
Weather forecaster Andrew Hagen works at his station at the National Oceanic and Atmospheric Administration’s (NOAA) National Hurricane Center in Miami, Florida, on May 30, 2025.
Chandan Khanna | AFP | Getty Images
The Sunshine State remains a magnet for talent, leading the nation in net migration. But Florida also pays attention to its workers after they arrive. The state’s worker training programs are among the most effective in the nation, according to data the state reported to the U.S. Department of Labor. Eighty-six percent of participants in the state’s worker training program found a job within six months. That is the fifth-best record of any state.
2025 Workforce Score: 255 out of 335 points (Top States Grade: A)
Net Migration Rank: No. 1
Adults with Bachelor’s Degree or Higher: 33.2%
Career Education Credential: 49.3% of degrees or certificates awarded
STEM Workers: 5.4%
Right to Work State? Yes
1. Texas
Employees of Bulldog Field Services work on plugging an orphan well for the Railroad Commission of Texas in Luling on Thursday, March 27, 2025.
Elizabeth Conley | Houston Chronicle | Hearst Newspapers | Getty Images
The Lone Star State’s workforce is the state’s biggest bright spot when it comes to business competitiveness. In fact, it is the best all-around workforce in the country.
Despite quality of life issues, people just keep pouring into Texas to take advantage of the many opportunities there. But the state also has a rich pipeline of homegrown talent. More than 70% of Texas high school students are concentrating in career-related fields — by far the highest percentage in the nation. But Texas also has a large contingent of STEM workers — the 13th highest concentration in the country. The Texas workforce finishes in the top ten for productivity, with the average worker responsible for more than $153,000 in economic output last year. Texas could do better with its worker training programs, a difficult task to manage in a state with more than 14 million workers.
Still, for companies looking for a large pool of talent, everything is indeed bigger in Texas.
2025 Workforce Score: 272 out of 335 points (Top States Grade: A+)
Net Migration Rank: No. 3
Adults with Bachelor’s Degree or Higher: 33.1%
Career Education Credential: 43.4% of degrees or certificates awarded
STEM Workers: 7.1%
Right to Work State? Yes
