WATCH: Dave Griek interviews Mike Cassling of the Aksarben Foundation about the workforce study commissioned by the foundation.

OMAHA, Neb. - Nebraska is falling behind peer states in job and wage growth as workers and companies leave for other opportunities, according to a new report released by the Aksarben Foundation.

The study, conducted by Development Counsellors International, found that outmigration and competition for jobs have slowed the state’s economy, particularly in Omaha and Lincoln. Those two cities account for more than 60% of Nebraska’s income and sales tax revenue.

If Nebraska’s largest metro areas had kept pace with similar markets such as Fayetteville, Arkansas, and Sioux Falls, South Dakota, they would have added 68,000 jobs in recent years, the report said. That growth could have generated $11 billion in additional wages and up between $600 million to $800 million in state tax revenue.

“Aksarben has been working on the challenges facing Nebraska’s workforce since 2017," said Mike Cassling, chairman of the Aksarben Board of Governors. "Aksarben commissioned this work by DCI and is releasing it because we care so deeply about the future of Nebraska."

Cassling said high property and income taxes are among the primary reasons residents leave, while states with lower tax burdens are attracting workers and businesses. He praised Gov. Jim Pillen’s administration for efforts to lower taxes by broadening the sales tax base and reducing government spending.

Business leaders said the shrinking labor pool is forcing them to look elsewhere. Allen Fredrickson, founder and CEO of Omaha-based Signature Performance, said his company has grown to nearly 1,500 employees, but because of workforce shortages, much of its expansion has taken place outside Nebraska.

“We expect to add 1,000 more jobs in the coming years and we hope that the vast majority of those jobs will be filled right here in Nebraska,” Fredrickson said. “The opportunity is real: if the talent pool can be expanded in Nebraska, then we can fill and retain more jobs for the state’s future workforce.”

Mickey Anderson, CEO of Baxter Auto Group, said relocation costs to bring workers to Nebraska often run about $40,000 per hire. As those costs rise, the study says companies are increasingly opting to place jobs in other states. Developer Jay Noddle said the lack of employment growth has also reduced demand for commercial real estate.

Julie Curtin of Development Counsellors International said companies will continue to follow the talent. “With few exceptions, companies will locate and grow employment where ‘brain gain’ exists,” she said.

Cassling said Nebraska can reverse the trend if leaders unite behind tax reforms, workforce incentives and a strong marketing campaign.

“The Aksarben Foundation pledges to stay involved in this process and commit time and resources toward improving the economic well-being for all Nebraskans,” he said.