Disraeli said there are three lies: lies, damned lies, and statistics. Of course, he forgot the last lie: anything having to do with politicians. North Carolina was recently named the best state in the nation to do business and, at the same time, the worst state in the nation to work. How can one state hold both of those titles? On the surface, the rankings make North Carolina appear to be pulling in opposite directions. But when you look closer, you see the problem isn’t with the workers or the businesses, it’s with the way we’re measuring the state and the data.
We in North Carolina were ranked by Oxfam (whatever that is) as the worst place to work for employees. The ranking was based on three categories: wages, rights to organize, and worker protections. At first glance, North Carolina doesn’t look good. Our minimum wage is still $7.25 an hour, the same as the federal minimum, which hasn’t changed since 2009.
Working full-time at that rate comes to about $15,000 a year, which is far below what anyone could reasonably live on. It’s understandable why analysts point to that number as evidence that the state is tough on workers. But here’s the catch: very few people here in North Carolina actually earn the minimum wage. In fact, the last time it was carefully measured, only about 3.6% of hourly workers were paid at or below that level, and many of them were teenagers working part-time. Building a sweeping ranking around such a small percentage of workers is misleading.
The same problem shows up with unions. North Carolina is what’s known as a “right-to-work” state, with union membership at only about 2.4% of the workforce, the lowest in the nation. A century ago, when children as young as 10 were working in mills six days a week, strong unions were necessary to protect workers. Today, the landscape is different. Many employees, especially in sectors like tech, pharmaceuticals, and finance, are covered by competitive benefit packages, retirement plans, and better working conditions. Using union density as the yardstick for whether a state is “good” for workers is like measuring a modern car by how well it holds a horseshoe. It ignores reality.
That’s not to say everything is fine. Far from it. We have work to do in order to further prosperity in North Carolina, but we won’t get there by focusing on outdated measures like the minimum wage and the right to organize.
One truth about North Carolina that isn’t captured in either ranking is that it isn’t just one state — it’s two. In areas like the Triangle, Charlotte, or Wilmington, employees often thrive in high-growth industries, with access to opportunities and benefits. But in places like Roxboro, Lumberton, or Siler City, the story is different. These regions face lower wages, fewer opportunities, and persistent economic challenges. Roughly 28% of workers in the state earn less than $17 an hour, compared with about 23% nationally. We’re not dead last on that measure, but it’s not where we should be either.
Our recent rankings don’t measure whether families can afford child care, or whether opportunities exist across rural counties, not just in fast-growing cities. They also don’t measure mobility, which is whether someone can move from an entry-level role into the middle class, the real measure of economic health.
Some people argue that what’s good for businesses must be bad for workers, and vice versa. That’s an old Marxist idea, and it doesn’t hold up. It is not a zero-sum game. Healthy businesses can, and often do, create healthy environments for workers. The problem isn’t that North Carolina is great for business and therefore bad for employees. The problem is that too many communities are being left behind, and we’re relying on antiquated benchmarks that hide what’s really going on.
Historically, the South has always had sharp divides between the haves and have-nots, stretching back to the agrarian economy before the Civil War. We have world-class research hubs, but we also have areas where the economic picture hasn’t changed much in decades.
So what’s the bottom line? If we want an honest conversation about North Carolina’s future, we need to measure the right things. Instead of holding onto metrics like minimum wage levels or union density, let’s look at whether workers are moving into the middle class, whether they’re being paid fairly for their time, and whether opportunities are reaching every county — not just the Triangle and Charlotte.
North Carolina has the potential to be both the best state for business and the best state for workers, but only if we measure success with metrics that reflect today’s economy AND if we help the whole state grow, not just a few areas.
