Each year for the last six, gay advocacy group Out Leadership has produced an index gauging the business climate for gay and transgender people state by state, mapping out where they can live and work with the least discrimination and hardship. 

Last year as anti-LGBTQ+ bills swarmed statehouses across the country, the average score for all 50 states dropped for the first time.

Todd Sears, Out Leadership’s founder and CEO, says he was not surprised when the average score fell again in 2024 as Republicans sharpened attacks on gay and transgender rights heading into the presidential election. 

“It was just confirmation of what we have already seen unfortunately,” Sears told USA TODAY. 

New York, Connecticut, and Massachusetts remained at the top of the Out Leadership index in 2024 while Arkansas received the 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. 

State business rankings slip because of 'Don't Say Gay' and other bills

The largest decreases were driven by rising anti-LGBTQ+ sentiment and state legislation restricting gay rights including so-called “Don’t Say Gay” bills in Florida, Indiana, Kansas and North Carolina, said Sears, who shared the results exclusively with USA TODAY. 

North Carolina had the steepest decline, primarily caused by a flurry of anti-LGBTQ+ bills in the state legislature, particularly legislation targeting the health and safety of trans youth.

The growing polarization as GOP strategists and lawmakers pursue conservative social policies in legislatures across the country worries Sears.

“This is not the America where we have fought for and bragged about equality,” he said. “This is a very right-wing approach to telling a significant portion of our country that they don’t have rights."

Living in states where they cannot be who they are or love who they love can have potentially dire consequences for gay and transgender people, who face rising intimidation, harassment and violence as well as high suicide rates, he said. 

“This massive, massive spike in anti-LGBTQ+ legislation,” Sears said, “makes me fearful for our community.”

He says he’s looking to the business community to stand by the LGBTQ+ community. 

“Because of the fear that has been created in the last two years by the right wing and the vilification of diversity and the vilification of LGBTQ+ people, corporations have been more reticent to use their economic power,” Sears said. “I try to remind them that they are economic engines in these states in which they operate. Their power hasn’t changed. It’s just the noise that’s been created by these right-wing, anti-inclusive politicians.”

New York ranks highest, Arkansas lowest in LGBTQ+ index

New York was the highest-ranking state in LGBTQ+ equality for the fourth year in a row, scoring 93.67 out of a possible 100 points.

Arkansas was the lowest-ranking state for the second straight year, scoring an all-time low of 27 points.

Released during Pride Month, Out Leadership’s State LGBTQ+ Business Climate Index measures the impact of state government policies and prevalent attitudes on the LGBTQ+ community, weighing factors such as support for young people and families, health access and safety, political and religious attitudes, work environment and employment and nondiscrimination protections.

Naples Pride held a protest and march in Naples, Florida on Friday, March 31, 2023 protesting anti-LGBTQ Florida House bills. Protest071

At first, the index was created for business leaders who play a key role in advancing LGBTQ+ equality by using their economic might to pass same-sex marriage and other gay rights initiatives and pulling investments in states that discriminate against gay and transgender employees. 

But state governors and local governments soon got in touch, asking how they could improve their scores, and employees began consulting the scores to figure out where they should – and should not – look for work.

“Our goal is for every state to do better,” Sears said. “It’s not about naming and shaming. It’s about pointing out the economic impact of laws, both positive and negative.”

Michigan, Georgia and Oregon make biggest gains

States that made the greatest gains in the 2024 index were Michigan, Georgia and Oregon, which adopted pro-LGBTQ+ legislation and where elected officials spoke out on LGBTQ+ rights. 

Michigan, for example, instituted a statewide ban on so-called conversion therapy, which attempts to change an individual’s sexual orientation or gender identity.

“Bigotry is bad for business,” Michigan Governor Gretchen Whitmer said in a promotional video filmed for Out Leadership. “We all know that companies want to invest in places where their employees are safe. And we know that people want to live in places where they have basic rights and control over their own bodies.”

Another recent survey bears that out. Job search company Indeed and Harris Poll analyzed the sentiment of LGBTQ+ workers and found that a third of LGBTQ+ employees do not want to work for a company located in a state without strong LGBTQ+ rights protections. 

Nearly 1 in 3 have refused to apply to a position due to lack of support for the LGBTQ+ community. The figures were even higher for 35-44-year-olds (39%), transgender individuals (50%), Hispanics (46%) and those with a household income of $100,000 or more (44%).

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