Tennessee received the lowest grade in the nation for quality of life in CNBC’s latest annual ranking of the best states for business, a finding that highlights tension between the state’s business-friendly reputation and social measures that influence where people want to live and work.
How CNBC scored states
The national business outlet evaluated all 50 states across 10 weighted categories for up to 2,500 points. Tennessee earned 1,453 points overall and finished No. 9 when economic factors, infrastructure and the costs of doing business were taken together — one spot lower than last year.
| Measure | State | Points / Note |
|---|---|---|
| Overall score (CNBC) | Tennessee | 1,453 |
| Top overall state | Ohio | 1,623 |
| Top for quality of life | Vermont | Ranked highest on quality-of-life subscore |
What went into the quality-of-life grade
CNBC’s quality-of-life subscore factored multiple variables, including:
- crime rates;
- availability of affordable child care;
- paid leave policies;
- “inclusiveness in state laws, including protections against discrimination of all kinds.”
- state-level restrictions on abortion were also counted, with the analysis citing research suggesting younger workers avoid states that ban abortion.
“inclusiveness in state laws, including protections against discrimination of all kinds.”
Local context and implications
For Tennessee officials and local leaders, the report underscores a familiar contrast: the state remains a magnet for corporate investment but struggles on measures people commonly use to judge livability. CNBC noted Tennessee’s continuing appeal to businesses — including recent large corporate moves that have put new jobs and headquarters activity into cities such as Nashville and Franklin — while also flagging areas that may deter workers deciding where to relocate or raise families.
That distinction matters for mayors, county executives and chambers of commerce across the state. A strong business climate can bring jobs and tax revenue, but recruiting and retaining talent depends on schools, public safety, family supports and inclusive laws. Employers weighing relocation or expansion often consider both the costs of doing business and whether employees will want to live in a state long-term.
What readers should know
- The CNBC ranking is not a single measure of state performance but a composite of multiple indicators; Tennessee’s low quality-of-life grade coexists with a top-10 overall business ranking.
- Tennessee scored 1,453 points in CNBC’s system; Ohio led the overall list with 1,623 points.
- Vermont was the top state specifically on the quality-of-life metric.
As Tennessee continues to welcome corporate investment and public attention, state and local leaders face the practical challenge of aligning economic growth with policies and services that improve daily life for residents — from safer neighborhoods to affordable child care and leave policies — if they hope to hold onto the workers those businesses want to hire.
— Ruby Callahan, Tennessee Correspondent
