Business Climate & Competitiveness

« Back to Dashboard Overview

Why it Matters

Oklahoma is competing for jobs every day. Businesses considering moving to or expanding in Oklahoma are looking at a variety of factors, from taxes and regulations to the cost of labor and our legal climate. While our state has made marked improvements in recent years, Oklahoma's business climate still lacks in many key performance areas. To be truly competitive, we must strive to maintain hard-won gains and seek to further improve in the areas that limit growth and investment. If we are to keep, attract and increase the number of good jobs in Oklahoma, we must have policies and strategies in place that encourage business' growth and development. 

×

Methodology

Cost of Doing Business (100 points)

The cost of doing business in a particular state influences where a company chooses to operate. We look at the average tax burden on existing businesses in each state, as well as the cost of utilities.

Regulatory Policy (100 points)

Regulation can be a major burden on business. In order to determine if their legal and regulatory frameworks are friendly to business, we look at each state’s legal climate rankings and if the state is a Right-to-Work state.

Occupational Licensing (50 points)

Licensing requirements are often a barrier for entry into a state’s workforce. We compare states by looking at what share of each state’s workforce is licensed.

Industry Diversification (50 points)

A diverse economy is good for business. We examine an industry diversification index to see which states have a more industrially diversified economy compared to a more concentrated economy.

Employment (150 points)

The availability of a workforce is vital to a state’s economy. We look at each state’s labor force participation rate, unemployment rate, and annual growth in employment.

Business Taxes as a Percent of Gross State Product (GSP)
4.2%
US Rate
4.5%
OK Rank
14th
×

Source

Council on State Taxation (FY2016)

Explanation

The total effective business tax rate (TEBTR) is measured as the ratio of state and local business taxes to private-sector gross state product (GSP). This is a measure of the average tax burden on existing businesses in a state.

Utility Costs
8.3
US Rate
10.5
OK Rank
6th
×

Source

U.S. Energy Information Administration (October 2017)

Explanation

Average Price of Electricity to Ultimate Customers, All Sectors (Cents per Kilowatthour)

Legal Climate Rankings
N/A
US Rate
N/A
OK Rank
31st
×

Source

U.S. Chamber Institute for Legal Reform (2017)

Explanation

ILR’s Ranking the States report explores how reasonable and balanced the states’ tort liability systems are perceived to be by U.S. businesses.

Share of Workforce Licensed
25%
US Rate
21.7%
OK Rank
39th
×

Source

Kleiner and Vorotnikov (2015), Harris data

Explanation

Percentage of workers licensed in each state

Industry Diversification Index (IDI)
8.7
US Rate
8.65
OK Rank
16th
×

Source

Regional Economic Research Institute, Florida Gulf Coast University (2nd Quarter, 2017)

Explanation

On a scale of 0 to 10, a higher IDI indicates a more industrially diversified economy and a lower IDI indicates a more concentrated economy.

Labor Force Participation Rate
61%
US Rate
63.1%
OK Rank
39th
×

Source

U.S. Census Bureau (2016)

Explanation

This is the percentage of state residents age 16 or older who participated in the labor force, including all people classified as employed or unemployed.

Annual Unemployment Rate
4.9%
US Rate
4.9%
OK Rank
27th
×

Source

U.S. Bureau of Labor Statistics (2016)

Explanation

The unemployed percent of the civilian labor force in a given year, not seasonally adjusted.

One-Year Growth in Employment
1.5%
US Rate
1.6%
OK Rank
17th
×

Source

U.S. Bureau of Labor Statistics (November 2017)

Explanation

One-year growth in total non-agricultural employment from November 2016 to November 2017, not seasonally adjusted.