North Carolina Ranks Worst in U.S. for Wages and Worker Protections
- North Carolina ranks dead last in the 2026 Best States to Work Index published by Oxfam, even as the state maintains top rankings for its business economy.
- Oxfam's index examined 37 policies across all 50 states, the District of Columbia, and Puerto Rico, evaluating wages, worker protections, and the right to organize.
- The North Carolina Budget and Tax Center co-hosted an online public hearing addressing affordability issues for low- and middle-income workers.
North Carolina ranks dead last in the 2026 Best States to Work Index published by Oxfam, even as the state maintains top rankings for its business economy. According to Oxfam America’s policy director Patricia Stottlemyer, the state’s stagnant minimum wage of $7.25 meets only 19 percent of the cost of living for a family of four.
Minimum Wage Stagnation and Regional Economic Pressures
Oxfam’s index examined 37 policies across all 50 states, the District of Columbia, and Puerto Rico, evaluating wages, worker protections, and the right to organize. Stottlemyer noted that North Carolina has not raised its minimum wage since 2009. By contrast, neighboring Virginia raised its hourly minimum wage to $12.77 per hour and passed legislation to reach $13.75 per hour on January 1, 2027. Republican state lawmakers have resisted raising North Carolina’s minimum wage, arguing that demand for labor has driven pay higher and that very few people earn the minimum wage. However, worker advocates maintain that this claim fails to reflect realities in rural areas with limited job opportunities. Alex Campbell, a policy analyst with the North Carolina Budget and Tax Center, stated that raising the minimum wage substantially could boost average annual pay for over 1.5 million working North Carolinians. Campbell noted that if the minimum wage were increased to two-thirds of the national median wage, it would provide an average annual pay increase of $6,100 and benefit a third of the state workforce.
Affordability Crisis and Impact on Essential Workers
The North Carolina Budget and Tax Center co-hosted an online public hearing addressing affordability issues for low- and middle-income workers. Caroline Hakel, a public school educator who relocated to Henderson County after earning a teaching degree in Ohio, described struggling to find affordable housing. Fair-market rent for a one-bedroom apartment in Henderson County stands at $1,429 per month, leaving Hakel cost-burdened. Unlike Ohio, teachers in North Carolina cannot collectively bargain for better wages and working conditions. Hakel called for the state to restore master’s pay and fund childcare for teachers, noting that veteran educators were left behind in recent state budget raises. In Transylvania County, KC Collins of the Worker and Living Wage Coalition reported working two jobs to make ends meet. Collins stated that tourism-dependent economies create seasonal income instability and financial uncertainty, a situation intensified by Hurricane Helene. According to Oxfam, North Carolina also lacks mandates for paid family and medical leave, paid sick leave, domestic worker protections, and caregiver discrimination protections. Furthermore, the state’s right-to-work laws restrict employees from forming unions to negotiate higher wages and better benefits.
