Analysis Shows Growing Burden of Oregon Regulations

June 9, 2025

As of 2023, Oregon was the seventh most heavily regulated state in the nation, according to a study released in June 2025 by the Oregon Business & Industry Research and Education Foundation. Moreover, Oregon’s regulatory burden has been increasing rapidly, swelling by 5.6% between 2022 and 2023 alone. If that pace continues, Oregon’s regulations will double by 2036.

The growth of Oregon’s regulatory burden will further erode job growth and business creation while increasing costs for consumers. A 10% increase in regulations is correlated with a decrease of 0.5% in the number of businesses and a decline of 0.6% in employment for small businesses that remain, according to the study.

That 10% increase in regulations also leads to a 1% increase in consumer prices, a change that disproportionately harms the lowest-income Oregonians.

The regulatory impact study was conducted by researchers with the Maryland-based StratACUMEN Group, whose approach integrates quantitative analysis and economic literature review. For more about StratACUMEN’s approach and its Oregon report, follow the link to the right to listen to an interview with StratACUMEN President and CEO Memo Diriker by OBI’s Oregon Business Matters podcast.

The number of regulations imposed on a handful of Oregon industries is particularly notable. State regulations for animal production outnumber those in the average state by more than 2.5 to one. And Oregon has roughly 1.25 regulations on utilities for every one imposed by the average state, contributing to higher energy costs. But no industry is more heavily regulated than metal products manufacturing, where Oregon imposes nearly eight times as many regulations as the average state. This is especially notable considering that manufacturing jobs tend to pay well but, as Oregon’s economist has stated repeatedly, the state is in a manufacturing recession.

Below are some of the study’s most notable findings:

• For each 10% increase in business regulations, a typical small- and mid-sized business loses up to 2.58 jobs.
• A 10% increase in business regulations reduces the number of businesses by 0.5%.
• A 10% increase in business regulations decreases startups by up to 7%.
• A 10% increase in business regulations raises consumer prices by 1%.
• Oregon is the seventh most regulated state in the nation.
• Oregon has 224,000 state-imposed regulatory restrictions.
• Oregon has 57% more environmental rules than the average state.
• Oregon has 264% more rules for animal production than the average state.
• Oregon has 576% more rules for fabricated metals manufacturing than the average state.
• Oregon’s regulations increased by 5.6% between 2022 and 2023.
• 50% of Oregon’s regulations are duplicative or burdensome.

While many regulations may be well-intended, these unintended economic consequences receive very little—if any—attention in the rulemaking process. And it’s no wonder that more than 70% of small businesses surveyed told OBI that they can’t keep up with regulatory changes.

OBI’s Oregon Competitiveness Agenda offers common-sense solutions to help modernize Oregon’s regulatory environment and processes. Two bills from that agenda are still alive this legislative session, and we urge lawmakers to pass them. HB 3382 would make it easier for the public, regulated community, media, lawmakers and others to see the full scope of regulations and proposed regulatory changes by establishing a centralized website. HB 2692 would modernize rulemaking processes in several ways, including requiring economic and fiscal impacts.