For the past six years, the gay advocacy group Out Leadership has produced an annual index that rates the business climate for gay and transgender people in each state, mapping out where they can live and work most easily and without discrimination.
Last year, the average score for all 50 states fell for the first time as a wave of anti-LGBTQ+ bills was passed in state legislatures across the country.
Todd Sears, founder and CEO of Out Leadership, said he wasn’t surprised to see the average score drop again in 2024 as Republicans stepped up attacks on gay and transgender rights in the run up to the presidential election.
“Unfortunately, this is just confirmation of what we’ve already seen,” Sears told USA Today.
New York, Connecticut and Massachusetts maintained their lead on the Out-Leadership Index in 2024, while Arkansas received its lowest score since the index began.
The average score across all 50 states was 62.77 out of 100, compared to 63.48 in 2023 and 64.61 in 2022.
‘Don’t say gay’ bill, etc. cause state to drop in business rankings
The biggest decline was driven by rising anti-LGBTQ+ sentiment and state laws restricting gay rights, including so-called “don’t say gay” bills in Florida, Indiana, Kansas and North Carolina, said Sears, who shared the findings exclusively with USA Today.
North Carolina saw the steepest decline, largely due to a flurry of anti-LGBTQ+ bills in the state legislature, particularly those targeting the health and safety of transgender youth.
What worries Sears is the deepening polarization as Republican strategists and lawmakers pursue conservative social policies in legislatures across the country.
“This is not the America we’ve fought for and prided ourselves on,” he said. “This is a very right-wing approach that tells a significant portion of our population that they have no rights.”
Living in a state where you can’t be yourself or love who you love can have potentially dire consequences for gay and transgender people, who face intimidation, harassment, increased violence and high suicide rates, he said.
“This sudden increase in anti-LGBTQ+ bills is disturbing for our community,” Sears said.
He said he expects the business community to side with the LGBTQ+ community.
“Over the last two years, the fear and bashing of diversity and LGBTQ+ people that’s been created by the right has made businesses hesitant to use their economic power,” Sears said. “I try to remind businesses that they are the economic engine in the states where they operate. Their power hasn’t changed. The problem is just the noise created by right-wing, anti-inclusive politicians.”
New York has the highest LGBTQ+ index, Arkansas the lowest
New York was the highest-ranking state for LGBTQ+ equality for the fourth consecutive year, scoring 93.67 out of a possible 100.
Arkansas finished last for the second straight year, scoring a record-low 27 points.
Released during Pride Month, Out Leadership’s State LGBTQ+ Business Climate Index measures the impact state government policies and general attitudes have on the LGBTQ+ community, taking into account factors such as support for youth and families, health care access and safety, political and religious attitudes, work environment, and employment and anti-discrimination protections.
The index was originally created for business leaders who play a key role in advancing LGBTQ+ equality, including by using their economic power to pass same-sex marriage and other gay rights legislation, and by divesting from states that discriminate against gay and transgender employees.
But state governors and local governments quickly reached out to ask how they could improve their scores, and employees began using them to help decide where and where not to look for work.
“Our goal is for all states to do better,” Sears said. “It’s not about naming and shaming. It’s about pointing out the economic impacts of the law, both good and bad.”
Michigan, Georgia and Oregon saw the biggest increases
The states that made the most progress on the 2024 Index were Michigan, Georgia and Oregon, which have adopted pro-LGBTQ+ legislation and have elected officials who have spoken out on LGBTQ+ rights.
Michigan, for example, has instituted a statewide ban on so-called conversion therapy, which seeks to change an individual’s sexual orientation or gender identity.
“Bigotry is bad for business,” Michigan Gov. Gretchen Whitmer said in a promotional video filmed for Out Leadership. “It’s no secret that businesses want to invest in places where their employees can live safely. And it’s no secret that people want to live in places where they have basic rights and control over their own bodies.”
Another recent survey backs that up: An analysis of LGBTQ+ worker sentiment by job search company Indeed and Harris Poll found that one-third of LGBTQ+ employees would not want to work for a company in a state that doesn’t provide strong LGBTQ+ rights protections.
Nearly one in three people have turned down a job application due to a lack of support for the LGBTQ+ community, and the numbers are even higher for people ages 35-44 (39%), transgender people (50%), Hispanic people (46%), and those with a household income of $100,000 or more (44%).
