The US job market is changing rapidly in 2026, and states are competing to attract businesses by offering more than just low costs and business-friendly regulations.

Companies are increasingly looking for locations with skilled and educated workers who can meet the demands of a changing economy.

“Talent is always the No. 1 site selection criterion,” said Larry Gigerich, executive managing director of Ginovus and chairman of the Site Selectors Guild.

Worker shortages have eased since the years following the Covid-19 pandemic, when millions more job openings existed than available workers. More people have returned to the workforce, while artificial intelligence and other productivity tools are helping businesses meet some of their labour needs.

However, a significant skills gap remains in many parts of the country.

Gigerich said there is still a mismatch between the availability of workers and the quality of skills employers require.

As a result, states are increasingly investing in education, workforce training, and career development to strengthen their talent pools and attract new businesses.

Workforce development is one of the most important categories in CNBC’s annual America’s Top States for Business study. Under the 2026 methodology, the category accounts for 13.8% of a state’s overall score.

The best states for workers in 2026 are therefore those that combine strong education systems, accessible training opportunities, and a job market capable of connecting skilled workers with growing industries.