The North Carolina Paradox: Best for Business, Worst for Workers?

North Carolina has claimed the top spot as America’s best state for business in 2025, according to CNBC’s latest annual ranking. But before we break out the champagne, there’s a sobering reality check that comes with this accolade: the same state ranks dead last for workers.

The Great Divide

This striking contradiction tells a story that’s become all too familiar in modern America. While North Carolina earns praise for being “almost unfailingly friendly to business,” CNBC’s report delivers a harsh verdict on the worker experience, describing the state as “not terribly friendly to workers.”

The numbers paint a stark picture. North Carolina’s quality of life ranking sits at a disappointing 29th place, while Virginia—its northern neighbor and traditional competitor—dropped to 4th place overall but maintains a significantly higher worker ranking at 29th on Oxfam International’s worker-friendly scale.

The Human Cost

Behind these rankings are real stories that highlight the challenges facing North Carolina workers:

By the Numbers: A Tale of Two Wages

The wage gap tells its own story:

Virginia: $12/hour minimum wage represents 28.4% of what a family of four needs for basic costs North Carolina: $7.25/hour minimum wage covers only 18.4% of a working family’s cost of living

According to the U.S. Bureau of Labor Statistics, 1.6% of North Carolina’s hourly workers earn at or below minimum wage—a small percentage, but one that represents thousands of families struggling to make ends meet.

Where North Carolina Falls Short

Oxfam International’s comprehensive analysis reveals that North Carolina meets the organization’s full criteria for only one policy area: equal pay across gender and race. The state fails to meet standards for:

The Defense

North Carolina Labor Commissioner Luke Farley pushes back against the criticism, arguing that Oxfam is “out of touch with the realities on the ground.” He points to:

Farley advocates for pro-growth policies that create a competitive job market, arguing this naturally drives wages up without government intervention.

The Bigger Picture

The debate reflects a fundamental tension in economic development strategy. As union worker and former labor commissioner candidate Braxton Winston notes: “Workers and businesses do have mutual interests. You want business to thrive so workers can get a fair piece of the pie.”

Dr. Kaitlyn Henderson, author of the Oxfam report, suggests that North Carolina relies too heavily on federal standards as the floor for worker protections. She advocates for overturning right-to-work laws to make it easier for workers to organize and demand fair wages and workplace protections.

What’s Next?

Change appears unlikely in the near term. North Carolina Democrats have repeatedly filed bills to raise the minimum wage, only to see them fail in the Republican-controlled legislature. Oxfam expects North Carolina’s worker ranking to remain largely unchanged in their upcoming report update.

The Bottom Line

North Carolina’s success in attracting businesses is undeniable, but it raises important questions about the kind of economy we want to build. Can a state truly be considered successful if it excels at serving businesses while struggling to protect the workers who power those businesses?

As the state continues to grow and attract new residents and companies, finding the balance between business-friendly policies and worker protections may determine whether North Carolina’s economic success story has staying power—or whether it’s built on a foundation that ultimately proves unsustainable.

To read more, visit N.C. is ranked the best state for business, but the worst for workers – Axios Charlotte.