We’ve often been critical of Illinois’ business climate – particularly in contrast to Iowa’s – based on feedback from business owners and various national rankings. A wide disparity between the two states creates challenges for the Quad Cities region, which thrives when both sides of the river are performing well.
But credit is due where it’s earned. Illinois climbed to No. 13 in CNBC’s 2025 Top States for Business rankings – its highest placement ever. That’s a significant leap from No. 30 in 2019 and an improvement from No. 15 last year.
Iowa, which narrowly beat Illinois last year at No. 14, fell precipitously to No. 24 in the 2025 rankings.
Iowa scored best in the Cost of Doing Business category, but poorly in the Economy, Access to Capital, Workforce, and Technology and Innovation. Illinois scored best in Access to Capital and Education and poorly in Economy and Cost of Living.
Illinois’ improved rankings were touted by Illinois Gov. JB Pritzker in a July 11 news release.
“Since taking office, I have been on a mission to attract more businesses to Illinois, grow our economy, and give us a competitive edge for years to come. The latest rankings from today are a testament to the progress we have made here in Illinois and a clear sign that our thoughtful strategy and fiscal responsibility is paying off,” said Mr. Pritzker. “From rebuilding our infrastructure, strengthening our workforce, and investing in education from cradle to career, we have laid the foundation for sustained growth and prosperity. This progress is a clear indication of what Illinois is capable of.”
Mr. Pritzker has launched new business attraction incentives and improved Illinois’ existing suite of services over the last several years in order to attract and retain job creators looking to locate or expand their business in Illinois. To further accelerate growth, this year’s budget signed by Mr. Pritzker includes a historic $500 million investment in site readiness to prepare idle state-owned properties for future private development.
Businesses have also gained confidence in Illinois as it has demonstrated strong fiscal responsibility under Mr. Pritzker’s leadership. That includes earning nine credit upgrades, balancing seven consecutive budgets, paying off billions in debt, and making focused investments in economic growth initiatives, according to the same press release.
North Carolina was the top ranked state with its biggest strengths in the categories of Economy, Workforce, and Business Friendliness. Alaska came in last. CNBC noted that Alaska counts on oil for around 70% of its revenue, and upwards of half its budget. The price of oil is down by double digits from one year ago.
Like it or not, these state rankings do matter. We congratulate Illinois on its improved rankings.
