[5]
Reports Show Effects of Weak Economy, Population Shift
By Oregon Business & Industry,
What happened: In recent weeks, Common Sense Institute Oregon [6] has released two reports that should motivate policymakers to improve the conditions businesses need to grow and individuals need to thrive. The reports examine domestic migration and economic growth, two areas in which the state has struggled in recent years.
Domestic migration: On July 29, CSI Oregon released a report focused on domestic migration data. In 2022-23, domestic arrivals and departures were roughly balanced. However, people who left earned more than those who arrived, a difference of about $7,300 per household. In sum, Oregon recorded a net loss of $476 million in adjusted gross income during 2022-23. And on net, “Oregon’s highest earners are leaving the state, and the households replacing them earn considerably less. Whether driven by tax policy, cost of living, remote work flexibility, or retirement decisions, the direction of the flow of income is unambiguous.” This trend is worrisome given Oregon’s reliance on personal income tax revenue to fund public services. Go here [7] to learn more.
Economic growth: On Aug. 5, CSI Oregon released a report focused on the growth of Oregon’s economy, specifically the consequences of Oregon’s tepid rate of expansion. In 2025, Oregon’s GDP grew at only 1%, less than half the national rate. If Oregon’s economy had grown by an additional percentage point, the state could expect to have about 12,000 more jobs, $879 million more in wages and $88 million more in personal income tax revenue. Go here [8] to learn more.
Context: Business leaders have warned policymakers about the state’s declining competitiveness and weakening economy for years. Oregon’s average monthly employment growth [9] has trailed the national average for six consecutive years. Its GDP has grown more slowly [10] than the national average for five straight years. And its unemployment rate [11] has exceeded the national average for four straight years. Oregon’s performance in respected national rankings has suffered accordingly. CNBC ranked Oregon 42nd in its 2026 America’s Top States for Business [12] index, a drop of 25 places since 2017 [13], when the state was ranked 17th. To reverse this trend, the state’s elected officials must address the underlying policy drivers.
