Oregon’s position in the national business landscape took a concerning turn this week as CNBC’s annual “America’s Top States for Business” study ranked it 40th overall—placing it among the bottom quarter of states for business competitiveness and marking a significant decline from previous years.
The comprehensive analysis evaluated states across 10 categories including workforce, infrastructure, cost of doing business, and economic climate. Oregon’s performance raises important questions about the state’s economic trajectory at a time when post-pandemic recovery remains uneven nationwide.
“These rankings, while just one metric, often capture the attention of business leaders considering expansion or relocation,” says Amanda Peterson, chief economist at Northwest Economic Partners. “The concerning part isn’t just the ranking itself, but the downward trend we’re seeing in several key categories.”
Oregon’s most problematic scores came in the cost of doing business category (45th) and business friendliness (43rd), suggesting structural challenges in the regulatory environment and overall expense structure facing companies operating within the state. The high cost of living, particularly in urban centers like Portland, continues to create workforce challenges despite the state’s traditionally strong talent pool.
What’s particularly troubling is Oregon’s infrastructure score (41st), reflecting ongoing concerns about transportation networks, broadband access, and utility costs. The state’s aging bridges and highways have long been identified as needing significant investment, according to Oregon Department of Transportation reports.
The Federal Reserve Bank of San Francisco’s regional economic research unit recently noted that Oregon faces “persistent structural challenges in balancing progressive policy goals with business growth incentives”—a tension evident in the state’s regulatory approach.
Not all indicators were negative, however. Oregon maintained competitive positions in technology and innovation (18th) and education (22nd), leveraging its established technology corridor and university system. The state’s commitment to sustainability and renewable energy continues to attract certain industry segments despite overall challenges.
“Oregon still has tremendous assets—an educated workforce, natural resources, and quality of life advantages that don’t always factor into these rankings,” notes Michael Wilkerson, senior economist at ECONorthwest. “But the warning signs regarding costs and regulatory complexity deserve serious attention from state leadership.”
The rankings come at a pivotal moment for Oregon’s economy. Recent data from the Bureau of Labor Statistics shows the state’s unemployment rate at 4.1%, slightly above the national average, while job growth has slowed in traditionally strong sectors like technology and manufacturing. Business formation rates, a key indicator of economic dynamism, have fallen 8% year-over-year according to the Oregon Secretary of State’s office.
State officials responded to the rankings by highlighting ongoing initiatives to improve business conditions. “We recognize these challenges and are implementing targeted reforms to streamline permitting processes while maintaining our environmental standards,” said a spokesperson for Business Oregon, the state’s economic development agency.
Regional economic disparities within Oregon compound the challenge. While the Portland metro area continues to attract investment in certain sectors, rural communities face steeper hurdles in economic development. The Oregon Rural Development Council cites broadband access, workforce availability, and transportation infrastructure as persistent obstacles.
Context matters when interpreting these rankings. North Carolina captured the top spot in the CNBC study, followed by Virginia and Florida—states that have aggressively pursued business-friendly policies and infrastructure investment. Meanwhile, Alaska ranked last overall, with Mississippi and West Virginia also placing in the bottom tier.
Oregon’s decline in these rankings warrants attention, but economic development experts caution against overreaction. “These studies provide valuable feedback, but they represent just one perspective on business climate,” explains Jennifer Robertson, director of the Oregon Small Business Association. “Many companies choose Oregon specifically for values that aren’t fully captured in these metrics—sustainability focus, quality of life, and access to outdoor recreation.”
The road to improvement requires addressing fundamental challenges while preserving Oregon’s unique advantages. Business leaders point to specific priorities: modernizing infrastructure, addressing housing affordability to support workforce development, and streamlining regulatory processes without abandoning environmental and social commitments.
As Oregon navigates this economic crossroads, the rankings serve as both a warning and an opportunity for recalibration. The question facing policymakers isn’t whether to pursue business growth, but how to align it with the state’s broader values and long-term vision.
