Finding the right talent can feel like an uphill climb—especially for small businesses. From juggling job postings to screening candidates, hiring takes time, money, and plenty of patience. But did you know where your business is located could make all the difference?
That’s why we created Truffle's Best States to Hire Index.
By analyzing key factors like wages, workforce demographics, and economic conditions, we rank all 50 states to show where hiring is a breeze and where it’s more of a battle.
Curious how your state stacks up? Explore the rankings and discover the factors shaping your local hiring landscape.
Key state-level hiring insights
1. Texas, Idaho, and Ohio top the rankings as the best states for small business hiring, combining low costs with a large and well-educated workforce.
2. Mississippi, West Virginia, and Maryland struggle with hiring. Mississippi and West Virginia have fewer skilled workers and shrinking populations, while Maryland faces higher hiring costs.
3. The percentage of people working or looking for work varies a lot—from just 54.6% in Mississippi to over 70% in states like Nebraska and North Dakota.
4. Hiring costs matter a lot—things like wages, taxes, and healthcare vary widely, giving the top-ranked states a big edge in affordability.
5. Education and training make a big difference—states with training programs and more high school and college graduates usually have better hiring conditions.
Overall score
How does your state rank? The index covers all 50 states and illustrates the combined scores of the four dimensions (job market activity, demographics, cost, and education & training).
Hover over a state to see its score. States are ranked from highest (most favorable for hiring) to lowest (least favorable for hiring).
Best 5 states to hire as a small business
These five states make hiring as a small business easier.
They offer an active and educated workforce, with over 85% holding high school diplomas and around 30% earning bachelor’s degrees. Plus, wages are competitive, and payroll taxes are low—so you’re not breaking the bank to bring in top talent.
What really sets them apart is their small-business-friendly vibe. A big chunk of workers are employed by small businesses, making these states perfect for growing teams.
1. Texas
Looking to hire? Texas might just be the perfect place. CNBC's 2024 Top States for Business ranked Texas number 3 overall, but number 1 in its workforce dimension.
With 64.2% of its population actively working and a booming 10.22% growth expected by 2030, the talent pool here is both deep and growing. Wages are competitive at $33.32 an hour, and employers enjoy a low payroll tax of just 2.7%.
Plus, Texas has a youthful, well-educated workforce (over 85% have a high school diploma, and 30% hold a bachelor's degree). It’s not just ready workers—it’s a workforce ready to thrive.
2. Idaho
Idaho is a hidden gem for businesses. With 63.3% workforce participation and over half the workforce (56.6%) in small businesses, it’s built for entrepreneurial growth.
Employers enjoy ultra-low payroll taxes (1.37%) and competitive wages at $32.21 per hour. Idaho’s workforce is solid—91.3% have a high school diploma, and nearly 29% hold a bachelor’s degree.
The state’s median age of 37.5 strikes the perfect balance for stability and energy, and healthcare costs are impressively low at just $1,186 per employee annually.
3. Ohio
With a 62.5% workforce participation rate and a solid small business environment (43.3% of workers employed by small businesses), Ohio provides plenty of hiring potential.
Employers benefit from low payroll taxes (1.2%) and competitive wages averaging $32.26 per hour. The workforce is highly educated—91.7% have a high school diploma, and nearly 29% hold a bachelor’s degree.
A median age of 39.9 offers a mix of experience and stability. While healthcare costs are on the higher side at $1,791 annually per employee, Ohio’s balance of affordability, talent, and readiness makes it a great choice for building a team.
4. Montana
With a 63.6% workforce participation rate and 65.9% of the workforce employed by small businesses, Montana thrives on community-driven employment.
Employers enjoy competitive wages at $31.58 per hour and manageable payroll taxes at 1.65%. The workforce is highly educated—94.4% have a high school diploma, and 33.1% hold a bachelor’s degree.
A median age of 40.2 ensures stability and experience, while low healthcare costs of $1,333 annually per employee make benefits more affordable.
5. North Dakota
Employers benefit from competitive wages averaging $34.13 per hour and low payroll taxes at 1.65%.
North Dakota’s workforce is highly educated—93.6% hold a high school diploma, and 30.7% have a bachelor’s degree.
With a youthful median age of 36.2 and affordable healthcare costs at just $1,145 per employee annually, it’s a cost-effective and talent-rich environment.
Worst 5 states to hire as a small business
These states share a few common challenges when it comes to hiring. First, educational attainment is uneven—plenty of high school grads, but fewer bachelor’s degrees in some states, which limits access to skilled talent.
Second, affordability varies—wages and payroll taxes are reasonable in some areas, but higher costs in others make hiring less attractive.
Lastly, population trends like slow growth or aging workforces create long-term concerns, making it harder to sustain a steady talent pipeline over time.
1. Mississippi
Hiring in Mississippi comes with its challenges. With only 54.6% of the population in the workforce and just 22.8% holding a bachelor’s degree, the talent pool is smaller and less skilled compared to other states.
Job opportunities are limited, and weak worker protections don’t inspire confidence for employees or businesses.
While wages and healthcare costs are low, they might not be enough to attract top-tier talent. Simply put, finding the right people in Mississippi can be tougher than in other states.
2. West Virginia
Hiring in West Virginia can be an uphill battle. Only 55.7% of the population is active in the workforce, and just 21.3% have a bachelor’s degree, limiting access to skilled talent. Job openings are sparse, with only 0.63 openings per unemployed person, and the state’s population is actually shrinking (-2.49% by 2030).
Add in a higher median age of 42.9 and weak worker protections, and it’s clear that attracting and retaining talent here isn’t easy. While wages and payroll taxes are affordable, finding the right people might take more effort than in other states.
3. Maryland
Maryland boasts a skilled workforce, with 65.5% participation and 40.9% holding bachelor’s degrees, but hiring is competitive with 0.81 job openings per unemployed person.
High wages ($35.21/hour) and a $15 minimum wage increase costs, while healthcare premiums average $2,119 annually.
4. Missouri
Missouri has a 64.5% workforce participation rate and reasonable wages at $31.98/hour, with 91.6% of residents holding a high school diploma. However, hiring is competitive for small businesses and the population is slightly declining.
5. Nevada
Nevada offers affordable wages at $30.93/hour and moderate payroll taxes (1.95%), with 61.7% workforce participation and 87.2% of residents holding a high school diploma. However, only 25.5% have bachelor’s degrees, and hiring is highly competitive.
How the states rank across the four key areas
Job market activity by state
We looked at how many people who can work are actually working or looking for a job, the percentage of the workforce employed by small businesses, and the ratio of job openings to unemployed individuals. We took a five-month average using data from the US Bureau of Statistics.
States are listed from the highest score (indicating the more favorable job market activity) to the lowest score (least favorable).
Education and workforce training by state
We looked at the percentage of high-school and university graduates as well as the funding of workforce training programs using data from the Education Commission of the States.
States are listed from highest score (most educated) to lowest score (least educated).
Cost of new employees by state
We looked at metrics like the average hourly wage, minimum wage, employer taxes, and the cost of health insurance for the employer.
States are listed from least expensive to most expensive.
Demographics by state
We looked at the median age in each state and the expected growth of the population by 2030.
States are ranked from highest score to lowest score.
The methodology behind our index
We evaluated 50 U.S. states based on four broad dimensions crucial for hiring:
1. Demographics
2. Cost of hiring
3. Job market activity
4. Education & training
Within each dimension, the states were scored across multiple factors such as workforce participation, job openings, educational attainment, and cost-related metrics such as wages and hiring expenses. Scores for each dimension were weighted equally (25% each) to ensure a balanced evaluation.
The final score reflects the overall hiring environment in each state, combining factors such as the availability of a workforce, affordable labor costs, and the educational readiness of workers. A higher score indicates a state with more favorable conditions for employers to hire and grow their team. We defined a small business as an organization with less than 500 employees.
Limitations
While the rankings provide a comprehensive view of state hiring conditions, the following limitations were identified:
1. Projection-based metrics such as population growth, rely on projected values, which may vary from actual outcomes.
2. State-specific contexts, economic nuances, and industry concentrations may influence hiring conditions beyond the scope of this index.
3. Intra-state variations are not accounted for. This index does not capture regional disparities within states, such as urban vs. rural labor market differences.
