For years, Oregon's political leaders have promised that higher taxes, more regulation, and bigger government would produce a stronger economy.

The results tell a different story. Oregon is no longer creating businesses fast enough to replace the ones it is losing—a warning sign that the state's economic policies are failing the very workers and entrepreneurs they claim to support.

According to the latest U.S. Bureau of Labor Statistics data, Oregon lost more businesses than it gained in both 2024 and 2025. Closures outpaced new establishments by 1,700 in 2024 and by another 6,000 during the first nine months of 2025.

While some closures may prove temporary, this is the longest sustained period of business decline since the Great Recession.

This is not a national trend.

Across the country, new businesses have continued to outnumber closures, underscoring that Oregon's struggles are largely self-inflicted rather than the inevitable aftermath of the pandemic.

The consequences extend far beyond the businesses that have locked their doors.

Fewer new businesses mean fewer jobs, less competition, lower investment, and diminished opportunities for workers.

Unsurprisingly, Oregon now has the nation's third-highest unemployment rate at 5.2%, while job growth has stalled since 2023 even as employers across much of the country have continued hiring.

For too long, state leaders have treated private employers as a source of tax revenue and regulation rather than as partners in creating prosperity. Businesses large and small have faced rising costs, an increasingly complex regulatory environment, and growing uncertainty about whether Oregon remains a competitive place to invest. Entrepreneurs have choices, and too many are choosing to expand elsewhere.

Perhaps the clearest acknowledgment of this failure came not from critics, but from Gov. Tina Kotek's own Economic Prosperity Council.

Last month, the council recommended tax relief, regulatory reform, and greater investment in higher education to strengthen Oregon's economy. Those recommendations amount to a recognition that the state's current approach is not delivering the robust job creation Oregon families need.

Oregon's natural advantages—a talented workforce, world-class universities, abundant resources, and exceptional quality of life—should make it one of the nation's strongest economies. Instead, it is falling behind.

Reversing that trend will require more than new task forces or economic strategies. It will require policymakers to recognize that sustainable prosperity comes from encouraging private investment, rewarding entrepreneurship, and creating an environment where businesses can succeed rather than merely survive.

Until Oregon embraces that shift, the state's disappointing economic performance should not come as a surprise. It is the predictable outcome of public policies that have made job creation more difficult instead of making economic growth a priority.