Oregon’s competitiveness ranks fall as business group urges policy reforms

Bend, Ore. (KTVZ) --- Oregon Business and Industry released its 2027-28 Oregon Competitiveness Agenda today, urging state lawmakers to reform tax and regulatory policies to address ongoing economic stagnation. The statewide business group highlighted several indicators showing Oregon trailing national growth and employment averages over consecutive years.

Data cited in the report shows Oregon's economy grew by 1% in 2025, less than half the national growth rate. Employment in the state fell by 0.5% during the same year, while national employment increased by 0.5%. Economic growth in Oregon has trailed the national average for five consecutive years, while state employment growth has lagged behind national figures for six straight years.

Per capita personal income in Oregon has remained at about 96% of the national average since 2020. The state ranked 35th in the nonpartisan Tax Foundation's 2026 State Tax Competitiveness Index, dropping 28 places since 2019. CNBC also lowered Oregon's standing to 42nd in its 2026 America's Best States for Business ranking, representing a 25-place drop since 2017.

OBI is a statewide business association representing 1,500 member companies across all 36 Oregon counties, employing more than 250,000 workers. Angela Wilhelms serves as the president and CEO of the organization. “Oregon is on the wrong track,” Wilhelms said. “We can once again become an economic force and a beacon of opportunity. But that won't happen without the right policy environment and determination to compete.”

The group's agenda outlines four primary priorities for state leaders: prioritizing economic and business development, improving affordability for residents and businesses, establishing a solutions-oriented regulatory environment and making tax and budget policies sustainable and competitive. Specific policy recommendations include replacing the state's Climate Protection Program with a market-based cap-and-invest system, echoing proposals from the Governor's Prosperity Council formed following Gov. Tina Kotek's 2025 Oregon Prosperity Roadmap.