Why the best countries for business may be the worst for workers

Companies are not afraid to pick up and move on.

Many states offer companies attractive incentives such as lower taxes if they relocate their operations, but a superior business climate does not always mean a superior business climate.

“Things that benefit employers when it comes to their bottom line or margin, in terms of economic expansion, can directly conflict with the things that benefit employees, residents, and actual workers,” said Niani Tolbert, founder and CEO of Hire Black Now, an organization that integrates recruitment and development Talents to Improve the Upward Movement of Black Women in the US Workforce.

And many of the states with the most attractive business incentives have been passing controversial social policies that some companies and the public have backed away from. These issues include LGBTQ restrictions, restricted access to voting, abortion restrictions, and preventing schools and employers from holding trainings on diversity and inclusion.

Oxfam America’s annual Best Countries to Work Index for the anti-poverty organization analyzes which countries have the best policies to protect workers.

Oxfam America ranked North Carolina, Mississippi, Alabama and South Carolina as the worst states for workers in 2021.

Every year, the worst states to work for are in the south, almost always. “In 2021, it was no different,” said Caitlin Henderson, senior researcher at Oxfam America.

The partisan divide formed over labor politics. Democrats are likely to pass the kinds of policies Oxfam America has in its best states to work on a list such as higher minimum wages, easier pregnancy in the workplace and policies that protect the right to form unions.

But the countries with the best policies for workers, according to an Oxfam America analysis, also tend to have the highest cost of living.

Oxfam America ranked Oregon, New York, Massachusetts and California among the best states for workers’ rights, but CNBC’s Best States for Business 2022 Index found that these states also have some of the highest cost of living in the country.

“There are a number of things that workers look for when they think about looking at different job opportunities that companies need to consider when hiring talent for jobs,” said Rachel Lipson, director of the Workforce Project at Harvard University. “We are still in a very tight labor market where workers still have a lot of power and the ability to be selective.”

Watch the video above to learn about the worst-case scenarios for workers and how companies in those countries can attract the best talent.