North Carolina wins on business but struggles when it comes to workers

North Carolina’s surprising Labor Day ranking

Labor Day celebrates workers across America, making North Carolina’s 2026 rankings especially striking. The state remains a powerhouse for business, yet its worker policies received the lowest score among states, Washington, D.C., and Puerto Rico.

Oxfam’s 2026 Best States to Work Index ranked North Carolina last overall. The result highlights a growing question: can a state be excellent for businesses while many workers still struggle with wages, benefits, housing, and affordability?

Oxfam measures workplace policies nationwide

Oxfam’s Best States to Work Index compares 37 policies affecting workers. The review covers wages, worker protections, paid leave, union rights, and other rules that shape working conditions across all participating locations nationwide today.

The 2026 ranking measures policies in place by July 1. It is not a survey of individual employers or workers, but a comparison of state-level labor policies that can influence economic security and workplace protections.

Business success tells different story

North Carolina earned strong marks from CNBC’s 2026 business rankings. The state ranked No. 1 for its economy and No. 2 overall, showing why companies continue viewing North Carolina as an attractive place to operate.

Oxfam measures something different, focusing on policies designed to protect workers. The contrasting rankings show that business strength and worker protections are separate issues, and strong economic growth does not automatically guarantee comfortable pay or workplace benefits.

North Carolina’s minimum wage stays unchanged

North Carolina’s minimum wage remains $7.25 per hour, matching the federal minimum wage. State officials say covered workers must receive at least this amount, unless another law or exemption creates a different requirement.

Oxfam says that wage covers only about 19% of the cost of living for a family of four. The figure illustrates how difficult it can be for low-wage workers when basic expenses consume much of household income.

A wage frozen since two thousand nine

North Carolina has not increased its state minimum wage since 2009. That means the legal wage floor has stayed unchanged for more than fifteen years, even as housing, groceries, transportation, and utility costs have shifted.

Supporters of higher wages argue that workers need stronger pay floors. Republican lawmakers have argued that market demand has already pushed many wages above $7.25, but advocates say that does not reflect every local labor market, especially rural communities.

Little-known fact: The U.S. Department of Labor says the federal minimum wage has been $7.25 per hour since July 24, 2009, when the final increase under the 2007 law took effect.

Virginia takes a different approach

Neighboring Virginia provides a sharp comparison. Its minimum wage reached $12.77 per hour in 2026, giving workers a substantially higher statewide wage floor than workers covered by North Carolina’s minimum wage.

Virginia has also approved future increases. State law sets the minimum wage at $13.75 on January 1, 2027, followed by $15 on January 1, 2028, showing how nearby states can follow very different approaches to wage policy.

Little-known fact: Virginia law sets the minimum wage at $12.77 per hour from January 1, 2026, and raises it to $13.75 per hour from January 1, 2027.

Rural workers may have fewer options

Large cities often have more employers competing for workers, but rural communities can face different challenges. Some workers have fewer nearby jobs, longer travel distances, or industries that depend heavily on seasonal demand.

That can weaken bargaining power, according to worker advocates. A statewide wage floor may matter more where employees cannot easily switch employers, especially in communities where tourism, agriculture, or other industries dominate local employment opportunities and incomes.

Higher wages could affect millions

Alex Campbell of the North Carolina Budget & Tax Center said a substantial minimum wage increase could boost annual earnings for more than 1.5 million working North Carolinians. His estimate assumes a much higher statewide wage.

Campbell said setting the minimum wage at two-thirds of the national median wage could produce an average annual increase of about $6,100. That figure is an estimate, not a guaranteed raise for every worker, but it shows the potential scale.

Worker protections go beyond wages

Oxfam’s index considers more than hourly pay. It also examines policies involving paid family and medical leave, paid sick leave, domestic workers, caregiver discrimination, and other protections that can affect household stability.

North Carolina does not generally require employers to provide paid sick leave or paid family and medical leave. For workers caring for children, parents, or relatives, unpaid time away can create serious financial pressure when regular pay suddenly disappears.

Housing costs squeeze working families

A paycheck can look decent until housing bills arrive. In Henderson County, the reported fair market rent for a one-bedroom apartment was $1,429 per month, creating a major expense for many single-income households.

Public school educator Caroline Hakel said affordable housing was difficult to find after moving to Henderson County. Her experience reflects a broader problem where workers can have steady jobs yet still struggle to afford housing close to where they live and work.

Durham workers face rising costs

Ieisha Francis, a Certified Nursing Assistant in Durham County, described seeing more housing built while many workers remained unable to afford it. She said some residents are sleeping in cars, staying in hotels, or relying on family.

Francis also pointed to higher utility and grocery bills. Her comments show how affordability involves more than rent alone, because workers must also cover food, transportation, household expenses, childcare, and other everyday costs that keep rising.

North Carolina’s quality life rating slipped

CNBC’s 2026 business ranking showed North Carolina remaining highly competitive overall, but some measures were weaker. The state ranked No. 35 for cost of living and No. 34 for quality of life.

Those categories include issues such as affordability, childcare, and safeguards against discrimination. The results suggest that a state can maintain strong economic performance while still facing challenges that affect residents’ daily lives, especially families balancing work with housing and essential household expenses.

Other states offer policy examples

Oxfam ranked California first in its 2026 Best States to Work Index. Washington, D.C., New York, Illinois, and Oregon followed, giving North Carolina policymakers several places to study different labor policy approaches.

No state received a perfect score from Oxfam. That means every state has room to improve, but the large differences in rankings show how dramatically worker policies can vary across the country, shaping wages, protections, leave, and organizing rights for millions.

Wondering how North Carolina’s tax changes could affect your wallet? See how the state is moving closer to eliminating income taxes.

Labor Day puts workers in focus

Oxfam ranked California first in its 2026 Best States to Work Index. Washington, D.C., New York, Illinois, and Oregon followed, giving North Carolina policymakers several places to study different labor policy approaches.

No state received a perfect score from Oxfam. That means every state has room to improve, but the large differences in rankings show how dramatically worker policies can vary across the country, shaping wages, protections, leave, and organizing rights for millions.

Curious how North Carolina voters are changing ahead of the 2026 election? Discover the latest voter registration shifts and what they could mean.

How do you think North Carolina should balance business growth with better pay and protections for workers? Share your thoughts in the comments.

This slideshow was made with AI assistance and human editing.

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