America’s Top States for Business 2025: What happened to Virginia?

Economic Impact of Federal Job Cuts - Virginia slipped from the top state in 2024 to number four due to its dependence on federal government decisions [1][2] - Approximately 144,000 federal jobs are located in Virginia, excluding contractors and commuters [2] - An economist forecasts the state could lose about 30,000 jobs this year due to workforce cuts [7] Job Market Dynamics - The state government launched a website to connect displaced federal workers with 250,000 open jobs [4] - A mismatch exists between the skills of displaced federal workers and the requirements of available jobs in sectors like healthcare and retail [5] State Government Response - The governor disputes CNBC's methodology, claiming it overestimates the risk from the federal government's presence [6] - The governor expects the state will lose jobs [7] Virginia's Strengths - Virginia remains a business powerhouse, ranking number one for education and in the top five for infrastructure [8]