April 2, 2026
Oregon Business and Industry today shared dozens of recommendations with Gov. Kotek’s Prosperity Council and encouraged the governor to act urgently to address “deep, systemic and multifaceted” problems with Oregon’s business climate and economy.
“Every month, session, year or biennium wasted without taking steps to economic recovery sets us back further,” OBI wrote, “especially in a competitive landscape where other states are aggressively figuring out how to win.”
In recent years, Oregon has fallen precipitously in national competitiveness rankings, a slide echoed by key economic data.
In 2025, CNBC placed Oregon only 39th in its annual America’s Top States for Business ranking, a drop of 11 places in a single year and 21 places since 2022, when it ranked 18th. CNBC gave Oregon particularly low marks for business friendliness (47th), cost of living (45th) and cost of doing business (43rd).
Oregon has experienced a similarly dramatic slide in the nonpartisan Tax Foundation’s State Tax Competitiveness Index. In 2020, Oregon ranked an impressive 8th. It currently ranks 35th. No state fell as far during that period. Oregon’s corporate tax structure is currently ranked 49th, better than only a single state.
Oregon’s increasingly unwelcoming business climate has taken a toll on its rates of economic and employment growth, both of which have trailed the national average consistently since 2020. Employment declines in large sectors like manufacturing, construction and trade, transportation and utilities are particularly alarming.
The bottom line: The policy-driven decline in Oregon’s economic competitiveness has reduced job opportunities for Oregonians and pushed business investment to more welcoming states.
The state risks continued distress, OBI wrote, unless it “strengthens its business climate through a more predictable and stable regulatory environment, manageable cost structures and balanced legislative and policymaking approaches.”
To that end, OBI offers dozens of recommendations in the following five categories:
- Avoid laws and regulations that make Oregon a policy outlier and harm the state’s competitiveness, whether in establishing new policies or evaluating and modernizing existing ones.
- Make Oregon a more affordable place to live, work and run a business.
- Establish a culture of “yes” rather than “no” and reduce Oregon’s overall regulatory burden while modernizing rulemaking processes and outcomes.
- Prioritize business and economic development through competitive retention, recruitment and long-term planning efforts in critical areas.
- Ensure a sustainable state budget focused on providing Oregonians with outcomes commensurate with the investments made by state government.
Follow the link below to read OBI’s recommendations.