Pennsylvania’s Economy Trails Nationally

Gov. Josh Shapiro recently celebrated Pennsylvania’s appearance in a new national ranking that suggests it’s a business-friendly destination. The commonwealth now ranks 13th on CNBC’s America’s Top States for Business—up four spots since last year. The governor notes that Pennsylvania is the top-ranking Northeastern state on the list.

It’s an intriguing headline, but it’s also highly selective. A broader body of data tells a very different story about Pennsylvania’s competitiveness.

Days after the governor’s celebration, U.S. News & World Report released its own 2026 Best States rankings. The rankings involve a much broader assessment built on 71 metrics spanning economy, education, healthcare, infrastructure, and opportunity.

And Pennsylvania didn’t fare as well on this list. The commonwealth ranks 40th overall, including 35th in education, 42nd in fiscal stability, 43rd in infrastructure, and fourth-to-last for its economy.

These rankings also track with federal data. Numbers from the U.S. Bureau of Labor Statistics, the Bureau of Economic Analysis, and the Census Bureau—comparing 2015–2026 growth across all 50 states—show that Pennsylvania ranks:

• 31st in employment growth, adding jobs at roughly half the pace of states like Idaho, Utah, and Nevada.
• 46th in personal income growth, ahead of only Illinois, Louisiana, Mississippi, Hawaii, and West Virginia.
• 39th in population growth, trailing the quickly growing Sun Belt states, such as Texas and Florida.  

By nearly every fundamental economic yardstick—job creation, income growth, and the ability to attract and retain people—Pennsylvania lags.

One favorable ranking doesn’t offset a decade of underperformance. Instead of celebrating mediocrity (“we’re #13!”), Governor Shapiro must focus on policy reforms that attract businesses and families and encourage them to put down roots in the commonwealth. That means empowering students with educational choice, unleashing Pennsylvania’s energy industry, and reining in the structural deficit.

Until Pennsylvania regains its competitive edge, it will continue to fall behind.