North Carolina is consistently ranked among America’s top states for business. But a new ranking by Oxfam lists the state dead last in this year’s2026 Best States to Work Index.
Oxfam, a global nonprofit focused on poverty and inequality, examined 37 policies including wages, worker protections, and the right to organize to determine which states do the best job of supporting workers in all 50 states, the District of Columbia, and Puerto Rico.
“This year, while workers are facing extraordinary economic hardship, we looked at how far wages go toward the cost of living for a family of four,” said Patricia Stottlemyer, Oxfam America’s policy director. “In North Carolina, the minimum wage of $7.25 only meets 19% of the cost of living.”
Because women
and workers of color are overrepresented in low-wage jobs, raising the minimum wage would help millions of workers, according to Oxfam.
Stottlemyer notes that North Carolina has not raised its minimum wage since 2009, while neighboring Virginia raised its hourly minimum wage to $12.77 per hour this year and passed legislation to increase the minimum wage to $13.75 per hour January 1, 2027.
Republican state lawmakers have resisted raising the state’s minimum wage because they say very few people actually work for minimum wage anymore. They say the current demand for labor has driven pay higher. But advocates say that’s not true for every job market, especially in rural areas with few job opportunities.
Alex Campbell, a policy analyst with the North Carolina Budget & Tax Center, said raising the minimum wage substantially could boost average annual pay for over 1.5 million working North Carolinians.
“If we increased the minimum wage to two-thirds of the national median wage, that would provide an average annual pay increase of $6,100 for North Carolinians, and it would benefit a third of our workforce,” Campbell told NC Newsline.
Stottlemyer said North Carolina also comes up short when it comes to policies like requiring paid family and medical leave, paid sick leave, protections for domestic workers, and caregiver discrimination protections. The Oxfam index says North Carolina’s “right-to-work” laws prevent employees from forming unions to negotiate higher wages and better benefits.
Affordability crisis for workers
On Wednesday, the N.C Budget & Tax Center co-hosted an online public hearing to discuss the affordability crisis and how it’s affecting low- and middle-income workers.
Caroline Hakel is a public school educator who moved to Henderson County after earning her teaching degree in Ohio. Hakel said unlike the Buckeye State, teachers here cannot collectively bargain for better wages and working conditions.
“I’m a single teacher and I’ve struggled to find affordable housing. Rental prices continue to rise and buying a house feels like a pipe dream,” said Hakel.
Fair-market rent for a one-bedroom apartment in Henderson County is $1,429 per month, leaving her cost-burdened on her teacher’s salary.
Hakel said she’d like to see state lawmakers restore master’s pay and consider funding childcare for teachers. She said while the raise that came in July’s state budget was welcome, veteran teachers were left behind.
“This should be embarrassing that this is what is considered significant,” said Hakel.
In neighboring Transylvania County, KC Collins, a member of the Living Wage Coalition of Transylvania County, is working two jobs to make ends meet. The county’s economy is largely dependent on tourism centered around nearby state and national forests.
“The focus on tourism as the key to our local economy has led to incredibly seasonal income and financial uncertainty for workers, especially after Hurricane Helene,” said Collins.
Collins said living in a state that is number one for businesses means nothing if it is also last in conditions for workers.
She also said affordable housing is a chief concern.Like many of her peers, she lives with roommates to make rent more affordable.
In Durham, Ieisha Francis works as a Certified Nursing Assistant in an assisted living facility. Over the past decade she’s noticed more apartments and houses being built, but fewer workers can afford them.
“There are people in Durham that are homeless, that sleep in their cars, that have to pay for hotels to stay in or have to stay with family members,” Francis said. “How is this even possible when they are working?”
The average annual pay for a CNA in Durham County is just under $38,000 annually, according to ZipRecruiter. But Francis said she’s increasingly juggling soaring utility costs and rising grocery prices.
“It’s not just me that I’m feeding. I have four grandchildren. So I have to also make sure that they’re fed as well,” said Francis. “It’s a real struggle.”
The struggle to make ends meet is beginning to affect the state’s business ratings, too.
In July’sCNBC ranking of “America’s Top States for Business” North Carolina’s rating for quality-of-life, based on key metrics like affordability, childcare, and safeguards against discrimination,was substantially lower than in 2025.
Stottlemyer is urging North Carolina policymakers to look at the places that top this year’s Oxfam index — California, the District of Columbia, New York, Illinois, and Oregon.
“These labor policies we track are key levers in addressing the affordability crisis,” said Stottlemyer.
Deputy Editor Clayton Henkel manages the NC Newsline website and daily newsletter, while also producing the weekly News and Views radio program/podcast.
NC Newsline is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.
This article originally appeared on Asheville Citizen Times: NC ranks best for business economy, dead last for workers
