According to an annual ranking of business climates by CNBC, Texas is the worst state for workers to live and work in. The study notes recent laws, including outlawing diversity and inclusion offices in higher education institutions, banning healthcare for transgender minors, and the state's strict abortion ban as a few examples.
According to CNBC, Texas' quality of life ranking has declined since 2017 and ranked the second worst in 2021, just before Arizona. Texas had the same ranking in 2022 before marking its worst-place ranking in 2023.
In addition to Texas's worst first-place ranking, the Lone Star State also fell out of the top five ranking for the best states for business. Texas' sixth-place ranking pushes the state down for the first time in the 16-year history of CNBC's ranking, primarily due to the "F" grade for the state's life, health, and inclusion. CNBC also gave Texas a "C" for business friendliness, education, and infrastructure.
"Yes, there are enormous economic opportunities in Texas, and it is attracting people from far and wide. But this state also has some Texas-sized issues when it comes to life, health, and inclusion," CNBC said.
For years, Texas has had the highest percentage of residents without health insurance, which CNBC included in its report. Around 18 percent of Texas residents do not have health insurance. And Texas boasts the second lowest number of primary care physicians per capita, CNBC reports. The study lists the state's weaknesses as "reproductive rights, health, voting rights, worker protections, and inclusiveness."
One recent example of Texas's new laws is House Bill 2127 which eliminates local municipalities from passing legislation in contravention of state law. Gov. Greg Abbott signed the bill into law in June. HB 2127 strips local governments from passing bills in industries like oil, insurance, finance, and more. Many labor organizations also warn that HB 2127 will strip workers of protections passed in cities, including mandatory water breaks. According to a report by Texas Tribune reporters Emily Foxhall and Francisco Uranga, workers protested HB 2127 last week at Houston City Hall, dubbing it the "law that kills."
Despite the worst place ranking, Texas Gov. Greg Abbott still touts the state's business climate on Monday.
"Texas has the Best Business Climate in America," Abbott said. "With a reasonable regulatory environment, talented labor force, and no state income tax, Texas offers an environment for businesses to grow and thrive."