In workforce development, one could spend an entire career focused on the immediate: connecting jobseekers to training, guiding employers to talent, and launching responsive programs. But the deeper we get into the work, the clearer it becomes that workforce outcomes are shaped by larger systems – and if we want to make a lasting impact, we can’t keep our lens too narrow. In Oregon, one of the critical systems shaping our field is the state’s overall competitiveness.
What Is Competitiveness?
At its core, state competitiveness refers to how attractive a state is for businesses to operate, expand, and create jobs. Companies don’t choose a location based on workforce alone – they look at a full picture:
- Tax and regulatory climate
- Infrastructure and land availability
- Education and training systems
- Cost of living and housing
- Speed of permitting and ease of doing business
Oregon isn’t just competing with other states – we’re competing with other regions, other metro areas, and other countries. Our attractiveness to businesses impacts the amount of jobs that are created locally, our ability to maintain sustainable wages, and our potential to fund public services.
What the 2025 Competitiveness Book Tells Us
According to the 2025 Oregon Competitiveness Book by Oregon Business & Industry (OBI), Oregon is facing several structural challenges that weaken our position:
- Aging demographics: For the first time, there are more Oregonians over 65 than under 18. School enrollments are falling, and labor force participation hasn’t rebounded fully since the pandemic.
- High business tax burden: Oregon ranks near the top in terms of tax load on businesses, particularly small and mid-sized employers.
- Limited development-ready land: Even when companies want to grow here, land access and permitting delays can stall projects.
- Education-to-workforce gaps: Despite strong education funding, Oregon lags in student proficiency and postsecondary completion. Employers report ongoing skill mismatches.
These issues aren’t momentary – they’re structural. And they shape whether Oregon is seen as a good place to grow a business, and whether quality jobs follow.
Why It Matters More in Oregon
Oregon’s tax structure amplifies the stakes. We are one of just a few states without a general sales tax. Instead, according to the Oregon Blue Book, 82% of our General Fund comes from personal income taxes – meaning the state’s ability to fund education, healthcare, and infrastructure depends directly on how much Oregonians earn.
That’s why employment isn’t just about individual livelihoods – it’s the foundation of collective access to public goods and services.
In states with sales taxes, part of the tax burden is “exported” to visitors and tourists. In Oregon, nearly all of it falls on residents and in-state businesses. When employment drops, so does our state’s ability to pay for public services. When wages stagnate, so does our economic momentum.
Competitiveness Is a Shared Responsibility
The business climate of Oregon may not always feel like a workforce issue – but when jobs don’t come, or wages don’t rise, or companies leave for other states, workforce systems feel the impact. If we want a strong, stable, and opportunity-rich Oregon, we can’t afford to ignore the desires and needs of business. Making Oregon attractive for business is a goal that is interconnected with the goals of workforce development. As we work towards it, workforce development should be at the table advocating for smart strategies that lower the burden of doing business and increase investment in our state.
The conditions we build today – across systems, sectors, and communities – will determine whether Oregon grows from within or falls behind. Let’s make sure that beyond offering training for jobs, we’re also building the foundation for broad opportunity.