Forbes Best States For Business: See Georgia's Ranking

ATLANTA, GA — Georgia ranks sixth in the country for business climate, according to a new report from Forbes. The American business magazine published its 13th annual “Best States For Business” rankings Wednesday.

Forbes said the rankings were calculated based on more than 40 metrics spanning six categories: business costs, labor supply, regulatory environment, economic climate, growth prospects and quality of life. The Peach State fell between Nebraska and Florida in Forbes’ overall rankings.

Here’s a breakdown:

Business costs

• Rank: 20

Labor supply

• Rank: 14

Regulatory environment

• Rank: 7

Economic climate

• Rank: 5

Growth prospects

• Rank: 9

Quality of life

• Rank: 24

Here’s what Forbes had to say about Georgia:

"Georgia moved up in the Best States rankings in recent years thanks to an improved economy and pro-business climate. The Tax Foundation's Location Matters study rates Georgia's corporate tax climate as the third best in the U.S. Big companies headquartered in the state include Home Depot, UPS, Coca-Cola and Southern Company," the magazine wrote.

"Union workers make up only 4% of Georgia’s employment base, the fourth-lowest rate in the country. One drawback: 15% of the population lives below the poverty line, the highest of any state ranked in the top 10. The Hartsfield-Jackson Atlanta International Airport is the busiest airport in the world as measured by passenger traffic with more than 100 million people annually," Forbes says.

The rankings suggest business people ought to consider moving to North Carolina, which topped the list for the second consecutive year. The authors prasied “The Tar Heel State” for its high net migration rate. Many more people have flooded into the state than have exited, the authors said. The state also has one of the smallest number of unionized workers in terms of percent of total employment.

“The resulting benefit is labor costs that are 9 percent below the national average — sixth lowest in the country,” the magazine wrote.

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Here are the top 10 states for business:

1. North Carolina
2. Utah
3. Texas
4. Virginia
5. Nebraska
6. Georgia
7. Florida
8. Colorado
9. Minnesota

Two years ago, North Carolina supplanted Utah as the best state for business. Utah had claimed the top spot six times in seven years from 2010-16, but dipped last year due to increasing business costs and weakening economic outlook, Forbes said. But the state remains one of the best due to its business-friendly climate, low energy costs and increasing employment.

On the other hand, Alaska, West Virginia, Maine, Vermont and Hawaii were, respectively, the worst states for business. Alaska’s economy is dependent on oil and gas — which account for more than 80 percent of the state’s revenue — and the drop in oil prices has hurt the state’s economy, Forbes said.

“Alaska's economy shrunk faster than any other state over the past five years (down 2.6 percent per year), and net migration out of the state also ranks worst in the nation,” according to the report.

The state’s employment outlook also ranked dead last over the next half-decade, with Alaska not expected to net any jobs.

Click here to read the methodology.

Patch national staffer Dan Hampton contributed to this report.

Photo credit: Spencer Platt/Getty Images