Economic Strengths Bolster Texas’s National Reputation

Texas, the second-largest state by both landmass and population, continues to make waves in the U.S. News & World Report Best States rankings, largely due to its vigorous economic performance. The state’s economy thrives on a blend of energy production, cutting-edge technology, and manufacturing industries. Pro-business policies and strategic investments have fostered a resilient job market and rising income levels, positioning Texas as a leader in economic vitality nationwide.

Key economic indicators that highlight Texas’s competitive edge include:

• GDP Growth: Texas’s economy expanded by 3.8% in 2023, outpacing the national average of 2.2%, showcasing its robust output.
• Employment Rates: With an unemployment rate of 3.5% in the first quarter of 2024, Texas maintains a healthier job market compared to the 4.1% national average.
• Business Environment: The state ranks within the top five for fostering entrepreneurship and attracting corporate expansions.

These figures underscore Texas’s role as a powerhouse of economic opportunity and innovation, setting a benchmark for sustainable growth across the United States.

Education and Healthcare: Mixed Outcomes Shape Texas’s Ranking

Texas’s position in the rankings is also influenced by its performance in education and healthcare, revealing a complex landscape of achievements and ongoing challenges. In education, the state boasts graduation rates above the national average, yet disparities in access and college readiness persist, particularly between urban and rural areas.

• Graduation Rates: Approximately 89% of Texas high school students graduate, compared to the national average of 85%.
• Student-to-Teacher Ratios: These vary widely, with urban districts often facing overcrowding while rural schools struggle with resource limitations.
• College Enrollment: Rates suggest potential for workforce development but highlight the need for improved post-secondary access.

Healthcare outcomes present a similarly nuanced picture. While metropolitan centers offer advanced medical care and innovation, statewide disparities remain significant, particularly in rural and underserved communities.

• Primary Care Access: Many areas still lack sufficient healthcare providers.
• Uninsured Population: Texas has an uninsured rate of 18%, nearly double the national average of 10%, impacting overall health outcomes.
• Health Metrics: Infant mortality rates and chronic disease prevalence slightly exceed national averages, indicating areas for improvement.

Infrastructure and Quality of Life: Areas Needing Attention

Despite Texas’s economic and cultural strengths, infrastructure limitations and quality of life concerns temper its overall ranking. The state grapples with aging transportation systems, traffic congestion, and limited public transit options outside major cities. These issues contribute to longer average commute times and environmental stress.

Quality of life metrics further reveal disparities in healthcare access, educational quality, and public safety, which are critical to residents’ well-being and factor heavily into national rankings.

To improve its livability and accessibility, Texas must invest in modernizing infrastructure, expanding public transportation, and addressing environmental concerns. These steps are vital for enhancing residents’ quality of life and attracting future business investments.

Strategic Policy Initiatives to Boost Texas’s Competitiveness

For Texas to climb higher in future Best States rankings, focused policy reforms are essential. Prioritizing education funding, particularly for STEM and vocational training, will prepare a workforce ready to meet evolving economic demands. Simplifying regulatory frameworks can stimulate innovation and attract startups, while infrastructure upgrades—especially in broadband and transit—will support both urban and rural communities.

Equity-focused initiatives are also critical, aiming to reduce regional and demographic disparities through:

• Customized workforce development programs aligned with emerging sectors
• Enhanced support for small businesses and minority-owned enterprises
• Expanded healthcare access to improve overall workforce health and productivity

Conclusion: Texas’s Path Forward in National Rankings

Texas’s ranking in the U.S. News & World Report Best States list reflects a state of contrasts—boasting strong economic fundamentals and educational achievements while facing infrastructure and healthcare challenges. This multifaceted profile offers a clear roadmap for policymakers and stakeholders aiming to enhance Texas’s appeal and competitiveness. As the state addresses these priorities, its trajectory in future rankings will be a key indicator of progress and resilience on the national stage.