Worst States to Work in the United States

Recent assessments of the United States labor market highlight a growing geographic disparity in worker protections, quality of life, and wage growth. Various indices and studies identify specific states as the most challenging environments for employees, citing factors ranging from restrictive labor laws to high crime rates and limited healthcare access.

According to an August 28, 2025, update from Oxfam, the organization’s Best States to Work index monitors where states are strengthening worker protections and defending the right to organize versus where they are selling workers short. The seventh edition of the index specifically notes a trend of states rolling back labor protections for children.

Factors Influencing State Competitiveness

Business competitiveness is increasingly tied to a state’s ability to attract and retain workers amidst a critical nationwide shortage. CNBC’s annual ranking of state business climates incorporates a Life, Health and Inclusion category to measure this competitiveness.

The methodology for evaluating quality of life includes several key metrics:

• Crime rates and environmental quality.
• Healthcare availability and the quality of childcare.
• Inclusive policies regarding discrimination and voting rights.
• Reproductive rights, which have become a factor for women choosing where to live following the Supreme Court’s decision to overturn Roe v. Wade.

These factors are critical because companies are now locating and expanding in areas where workers prefer to live to mitigate the impact of the worker shortage, which has seen nearly twice as many job openings as available workers.

State-Specific Labor Challenges

Different reports highlight various states as poor environments for workers based on distinct criteria. Indiana has been identified as the seventh worst state to work in, with its low ranking attributed to relatively low disposable income and long working hours.

North Carolina has also been cited for its lack of worker protections. Some reports indicate the state has been poorly ranked for workers for more than four years due to a lack of additional state-level protections.

Despite these worker-centric challenges, some southern states have evolved into economic powerhouses. North Carolina Governor Roy Cooper noted after being named the No. 1 State for 2023 that he remained concerned about the gains made by southern states in this regard.

Economic Inequality and Policy Gaps

The lack of federal legislation has led to increasing geographic inequality, where access to decent wages and fundamental rights depends on the state of residence. Oxfam reports that these policy gaps exacerbate inequality across lines of race, class, and gender.

The landscape for employment continues to shift, with new evaluations in 2026 focusing on the best and worst states specifically for those working from home, reflecting the evolving nature of the American workplace.