News Summary
Rhode Island has fallen to 46th place in CNBC’s annual business rankings for 2025, a drop from 44th in 2024. This decline highlights the state’s troubled business environment, with concerns over infrastructure, business friendliness, and economic challenges like high inflation and labor shortages. Despite some improvements in areas like education and quality of life, critics emphasize a lack of decisive action from policymakers. Moving forward, state officials seek to enhance competitiveness through economic development measures.
Rhode Island Ranks 46th in CNBC’s 2025 Business Rankings, Drops Two Spots
Rhode Island has been ranked 46th out of all states in CNBC’s “America’s Top States for Business 2025,” a significant drop from its previous position of 44th in 2024. This ranking not only reflects a decline in Rhode Island’s competitive standing but also places it as the lowest-ranked state in New England.
The CNBC analysis evaluates states using 135 metrics across 10 broad categories of competitiveness, which include critical factors such as the economy, infrastructure, workforce, and cost of living. Rhode Island’s decline has been consistent, with prior rankings at 45th in both 2022 and 2023, signaling a troubled trend in the state’s business environment.
Key Factors Behind the Rankings
Despite the overall drop in ranking, Governor Dan McKee emphasized that there are notable improvements in specific areas, particularly in quality of life and education. The state’s education ranking rose from 43rd to 33rd, thanks in part to initiatives like Learn365RI, which focuses on enhancing educational outcomes.
In addition to education, Rhode Island saw improvements in several areas, including workforce, access to capital, cost of living, education, and quality of life. However, challenges remain substantial. Rhode Island continues to rank near the bottom in terms of business friendliness, infrastructure, and the overall cost of doing business.
Criticism and Concerns Among Lawmakers
Additional Economic Challenges
Further complicating the business landscape, Rhode Island is experiencing high inflation and labor shortages. These factors hinder the potential for business startups, with a separate analysis from WalletHub identifying Rhode Island as the 50th state for startup success. In comparison, neighboring Massachusetts ranked significantly higher in this category at 33rd, emphasizing a disparity in the regional business climate.
Moving Forward
Looking ahead, politicians in Rhode Island argue that ongoing economic development measures, such as the elimination of certain state taxes, are steps towards improving the business environment. However, the state’s ranking in CNBC’s report reveals the steep challenges it faces as it seeks to enhance its competitiveness for businesses and attract new ventures.
As Rhode Island grapples with these economic hurdles, state officials and businesses will need to collaborate closely to foster an environment conducive to growth and prosperity. The developments in the state’s rankings are a call to action for lawmakers to address the issues affecting business development and overall economic health.
Deeper Dive: News & Info About This Topic
- CNBC: Top States for Business 2025
- NFIB: New State Business Rankings
- PBN: RI Drops to No. 46 on CNBC’s 2025 Ranking
- GoLocalProv: Rhode Island Falls in CNBC’s Ranking
- FUN107: Rhode Island Named Worst State to Start Business
- Wikipedia: Rhode Island
- Google Search: Rhode Island business environment
- Google Scholar: Rhode Island 2025 business ranking
- Encyclopedia Britannica: Rhode Island
- Google News: Rhode Island CNBC ranking
Author: STAFF HERE PROVIDENCE WRITER
The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.
