A state that’s best for business is also ranked worst for workers

In July North Carolina won bragging rights as the Top State for Business in 2025, according to CNBC. But what’s best for business may not always be best for those carrying out the work.

To coincide with the Labor Day holiday, Oxfam America released the Best States to Work Index (BSWI), and the Tar Heel state is far from the top.

Patricia Stottlemyer, senior domestic policy adviser at Oxfam America, notes that North Carolina came in 52nd in its new analysis that examines labor policies in all 50 states as well as D.C. and Puerto Rico.

A key reason is that North Carolina lawmakers have not raised the minimum wage of $7.25 an hour for 16 years.

“That minimum wage has been in place since 2009,” Stottlemyer told NC Newsline. “What that means in North Carolina is that the state minimum wage only covers 18% of what it would [need] to support a family of four. It’s woefully inadequate when it comes to enabling families to support themselves.”

By comparison, Virginia leads the Southeast region in compensation with a minimum wage of $12.41 per hour.

Stottlemyer said it’s a common misconception that when states support workers, that means bad things for the economy.

“That’s just not true. Our index actually looks at several metrics of community well-being, including economic measures and finds that there’s a strong positive correlation between states that have a healthy and robust labor policy landscape.”

In CNBC’s annual business ranking, North Carolina received its lowest marks for quality of life (earning a C-) and cost of living (earning a C+) – an acknowledgement of the rising cost of living in the state.

Beyond compensation, Oxfam underscores that North Carolina lacks critical workplace protections.

North Carolina does not provide a heat safety standard for outdoor workers, nor does it provide specific protection for warehouse workers, according to Oxfam.

The Heat Policy Innovation Hub at Duke University’s Nicholas Institute for Energy, Environment & Sustainability recognizes heat as an escalating crisis with a need for governance to protect workers from heat-related illness.

Workers would also benefit from fixed and fair scheduling. Unpredictable hours can be especially problematic for those whose duties include providing care for children, the elderly, or family members with disabilities.

Leave time is another factor.

“There’s no guarantee that workers have access to paid family and medical leave or paid sick leave,” notes Stottlemyer.

North Carolina is also held back in this year’s index for its “right-to-work” laws. The state ranks at the bottom with South Carolina, Georgia, Arkansas, Texas and Utah for having no support for workers organizing, whether by public or private employees.

In Oxfam’s companion report on the best states for working women, North Carolina is just edged out of the last spot by Mississippi. Again, a lack of paid family leave for working women causes the state’s ranking to bottom out.

“Black mothers in particular are disproportionately likely to be heads of their households and breadwinners. So, if they have access to paid leave, they’re able to stay in the workforce and juggle their caregiving responsibilities as well,” explained Stottlemyer.

State access to paid sick days was a key recommendation in a new report released last week by the N.C. Department of Administration’s Council for Women and Youth Involvement.

This report, “Investing in Economic Opportunity for Women in North Carolina,” found that while the gender wage gap for women has improved over the last seven years, fewer mothers are in the workforce compared to fathers. And North Carolina women working full-time spent 20 to 26% of their annual income on infant childcare.

The cost of childcare posed the greatest burden for Latina and Native American women in North Carolina, based on their earnings.

“Today’s findings reflect the disparities and discrimination women in North Carolina and across the country continue to face, especially women of color,” said Jesseca Boyer, vice president for policy and strategic initiatives at the Institute for Women’s Policy Research (IWPR).

And there is a ripple effect for the next generation.

North Carolina ranks lowest nationally in preschool enrollment for 3-year-olds, and second lowest among Southeastern state for the enrollment of 4-year-olds in preschool.

Oxfam and the Institute for Women’s Policy Research come to the same conclusion in their respective reports: North Carolina would greatly benefit from raising the minimum wage, indexed  to the cost of living, and by enacting legislation to require employers to provide workers with paid time off for short-term illness or to care for the health of a loved one.