For decades, Oregon's economy has lagged behind the national average, and many are now pointing to the state's shrinking workforce and excessive bureaucratic red tape as the culprits. According to a recent Willamette Week report, the state's higher taxes, duplicative regulations, and limited industrial land have made Oregon susceptible to businesses fleeing to more business-friendly states.
A Shrinking Workforce and Talent Drain
What this really means is that Oregon is struggling to retain and attract the skilled workers needed to drive economic growth. The state's population growth has slowed to a crawl, and federal labor data shows Oregon's unemployment rate has risen faster than the national average over the past year.
"We don't see that level of success in the recruitment world, but it speaks to how aggressive other states are in trying to poach businesses from Oregon," said Damon Runberg, an economist at Business Oregon, the state's economic development agency.
Bureaucratic Red Tape Stifling Innovation
The bigger picture here is that Oregon's overly complex regulatory environment is hampering business growth and innovation. A recent U.S. Census Bureau report found that new business applications in Oregon have declined by 7% over the past five years, significantly underperforming the national average.
"This particular bill will keep this trend going with one more, and one more, and one more Oregon manufacturer leaving our great state," warned Rep. Vikki Breese-Iverson, R-Prineville, referring to a new law that will expand prevailing wage requirements.
Unless Oregon can streamline its regulatory landscape and find ways to attract and retain top talent, the state's economic woes seem likely to persist.