California has fallen to No. 39 in Forbes’ rankings of The Best States for Business in 2010, down one position from its ranking in 2009.
According to Forbes, the rankings are based on valuations of business costs, labor supply, the regulatory environment and other economic factors. Among these specific measures, California ranked 44th in business costs, which includes the costs of labor, energy and taxes, and 43rd in regulatory environment, which measures the state’s regulatory and tort climate.
The most business-friendly states in 2010 were Utah (No. 1), Virginia (No. 2) and North Carolina (No. 3). Click over to Forbes.com for the complete list.