Oregon’s business reputation tanks in national rankings, hits all-time low
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July 10, 2025
PORTLAND Ore. (KPTV) - Oregon has dropped 11 spots in CNBC’s annual “America’s Top States for Business” rankings, falling from 28th place to 39th in 2025, it’s lowest score in the history of the rankings. The state now sits 22 places below where it ranked in 2017, when it reached a high of 17th place.
The rankings evaluate all 50 states across multiple categories, including economy, cost of doing business, and quality of life.
“Oregon’s slipping competitiveness should alarm policymakers,” said said Angela Wilhelms, president and CEO of Oregon Business & Industry. “It’s well past time for them to listen to the business community and take serious action to improve the business climate. After all, a healthy private sector is necessary to create the economic conditions that lead to increased prosperity, greater philanthropy and tax revenue for important government services.”
Several of Oregon’s key metrics fell sharply this year. The state’s economy ranking dropped seven places to 41st, cost of doing business fell nine spots to 43rd, and cost of living dropped eight spots to 45th. Oregon also saw a steep decline in its quality of life ranking, which fell from 6th to 19th, and in its technology and innovation category, down from 9th to 14th.
There were a few bright spots. Oregon improved in five categories: infrastructure (up three spots to 14th), workforce (up 13 spots to 23rd), education (up two to 35th), access to capital (up one to 24th), and business friendliness (up one to 47th). Still, only California, New Jersey, and New York ranked lower than Oregon in business friendliness.
Wilhelms acknowledged that CNBC’s updated methodology now includes some factors that are out of state control, like trade tensions and federal budget constraints, but said these don’t fully explain Oregon’s drop.
“Blaming those national issues for Oregon’s eroding competitiveness while ignoring the state’s own policies and [business] climate is a red herring,” she said.
Back in May this year, Governor Kotek and Portland Mayor Keith Wilson announced plans to cut red tape, in hopes drawing more development to Oregon.
“Portland is open for business — for housing, for opportunity, and for a thriving future,” Portland Mayor Keith Wilson said at the time.
They announced priorities focused on more housing, reviving or repurposing office buildings, and increasing foot traffic downtown.
Furthermore, this week, an Oregon businessman bought downtown Portland’s iconic “Big Pink” office tower with intentions of incentivizing more businesses to return to the city’s core.
See the full rankings report, here.
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