
N.C. is ranked the best state for business, but the worst for workers
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North Carolina is once again America's top state for business in 2025, according to CNBC's annual ranking, but that doesn't mean workers are reaping the benefits.
Why it matters: Politicians and economic developers brag about North Carolina's title as the No. 1 state for business, but tend to gloss over its "quality of life" ranking in the same study — No. 29.
- While CNBC credits North Carolina with being "almost unfailingly friendly to business," the report notes it is "not terribly friendly to workers."
Context: CNBC referenced a report from Oxfam International that ranks North Carolina dead last in the best states to work in the U.S., citing an "almost complete lack of worker protections."
- The state was also criticized for being among just five without a law "protecting nondisabled people from discrimination in public accommodations."
Case in point: This year, in a controversial tie-breaker vote, Charlotte City Council declined to study work improvements at Charlotte Douglas International Airport amid a push by the Service Employees International Union for higher pay and improved conditions.
- WCCB reported the story of a wheelchair assist agent at CLT who was making $12.50 an hour and living out of a storage unit because he couldn't afford housing in Charlotte.
- Charlotte Observer reports that a construction worker is killed once every 10 days, on average, in North Carolina.
What they're saying: "Workers and businesses do have mutual interests," says Braxton Winston, a union worker and former candidate for labor commissioner. "You want business to thrive so workers can get a fair piece of the pie."
The other side: North Carolina Labor Commissioner Luke Farley agrees this is the best state in the country for business, crediting its workforce, community colleges, four-year universities, "smart tax policies and common sense regulations."
- But he disputes that it is a bad place for workers. "Oxfam is out of touch with the realities on the ground," Farley says.
- He argues North Carolina is one of the fastest-growing states in the country. People are moving here from some of Oxfam's top-rated states, such as California and New York.
The intrigue: North Carolina has been neck-and-neck on past CNBC lists with its northern neighbor, Virginia. But this year, it fell to its lowest standing since 2018 (No. 4) due to its "interdependence on the federal government" amid looming budget cuts.
- But while N.C. is at the bottom of Oxfam's ranking, Virginia ranks much higher at No. 29 because of its worker protections and compensation. Virginia's $12-an-hour minimum wage is 28.4% of what it takes a family of four to cover basic costs in the state.
- North Carolina's minimum wage of $7.25 is 18.4% of the cost of living for a working family. According to the U.S. Bureau of Labor Statistics, 1.6% of North Carolina workers paid hourly rates are at or below minimum wage.
- "When it comes to North Carolina, year-over-year, what we're seeing is that the state relies on a lot of federal standards to create what is the floor for what they provide workers," says the Oxfam report's author, Dr. Kaitlyn Henderson.
Oxfam reports that North Carolina only meets the organization's full criteria for its policies mandating equal pay across gender and race.
- The state did not meet Oxfam's criteria for a long list of other policies, including paid family or sick leave, fixed and fair scheduling practices, protections against sexual harassment in the workplace and heat safety standards for outdoor workers.
- Henderson says North Carolina should overturn its right-to-work laws to make it easier for workers to unite and ask for fair wages and workplace protections.
What they're saying: Farley calls Oxfam's take on the rights to work a "red herring" since federal law allows union organization in all states, and he says workers shouldn't be forced to join a union.
- As for the minimum wage, Farley prefers to focus the conversation on pro-growth policies and creating a hot job market so workers are in demand and wages rise accordingly.
- Farley adds that North Carolina "goes above and beyond" for its worker protections, citing a recent federal evaluation that found the state's injury and illness rates are 19% below the national private-sector average.
What's next: Oxfam is releasing an update to its report later this month, but North Carolina's rank isn't expected to shift significantly, given the lack of movement in relevant policy.
- North Carolina Democrats have filed bills to raise the minimum wage to no avail in the Republican-controlled legislature.
