Press Release Massachusetts Named Most Improved State for Business by CNBC

Massachusetts jumped 18 places in state competitiveness ranking; Ranked highest of New England states

For immediate release:

7/10/2025

Governor Maura Healey and Lt. Governor Kim Driscoll

Boston — Massachusetts has been named the Most Improved State for Business by CNBC as part of their America’s Top States for Business ranking, jumping 18 places from last year and ranking higher than any other New England state. Massachusetts ranked #2 in the nation for education, earning an A+, and ranked in the top 10 for technology and innovation, quality of life and access to capital.

“This ranking is an encouraging sign for the results we have delivered when it comes to making Massachusetts more affordable and competitive, and making it easier to do business in our state,” said Governor Maura Healey. “We know that Massachusetts has the best schools in the world, is a global hub for lifesaving and job-creating research and innovation, and has led the nation in making child care more affordable. But we also know there is more work to do, especially as President Trump increases costs on everyone with his failed tariff war, continues to cut critical research and other funding, and is seeking to take away health care and food assistance from millions of people. Here in Massachusetts, we’re staying focused every day on lowering costs, creating jobs and growing our economy.”

“We’ve worked hard in Massachusetts to make our state the best place to live, work, start a business and raise a family,” said Lieutenant Governor Kim Driscoll. “This ranking is a testament to the partnership that takes place every day with our incredible businesses and entrepreneurs, schools, research and health care institutions, and workers. We’re going to keep working every day to lower costs and increase our competitiveness.”

CNBC specifically called out Massachusetts for being the only state in the nation to continue C3 grants for child care providers at the same level as the federal government after pandemic funded ending. As a result, the state has added nearly 20,000 child care seats in the past two years, helping to lower costs for families and supporting child care providers.

CNBC also pointed to the Mass Leads Act, which Governor Healey signed last year to make Massachusetts a global leader in emerging industries like climatetech and applied artificial intelligence (AI), while also building on the success of the state’s renowned life sciences sector. This economic development bill is creating jobs, supporting business growth, expanding workforce development programs and investing in rural and regional economic development initiatives.

Last week, Governor Healey signed her FY26 budget, which included targeted spending cuts to protect taxpayer dollars and protect the state’s economy from economic uncertainty at the federal level. The budget also makes historic investments in transportation and education, while lowering costs and growing the state’s economy.

Governor Healey also recently took several steps to improve the business climate in Massachusetts. She eliminated a series of regulations to save businesses and business owners time and money, making it easier to do business in the state. Her Commissioner of Insurance also rejected a proposed increase in the cost of workers’ compensation insurance, saving businesses nearly $80 million.

In the past two and a half years, the number of Massachusetts residents who are employed has grown strongly, with more than 130,000 more residents employed since Governor Healey took office in January 2023. This growth is much faster than the U.S. average and is the seventh highest of any state in the nation. Massachusetts has also had the 3rd fastest growth in the labor force among states, which has grown by 187,318 in that time period, with a Labor Force Participation Rate at 66.9 percent, the 9th highest among states. Since Jan 2023, Massachusetts has seen the largest increase in the labor force participation rate in the U.S. 

Massachusetts has also been ranked the best state economy, number one state for education, innovation, health care, working moms and dads, and women, as well as the best state to live in, to have a baby, raise a family and retire.