OREGON JOBS AND LABOR FORCE - December 2024 UPDATE

Widespread Employment Declines in Oregon

In December 2024, Oregon's employment landscape was marked by significant declines across most sectors. Total nonfarm payroll employment fell by 4,922 jobs, with nine out of eleven major sectors reporting losses. Manufacturing experienced the largest decline, shedding 1,876 jobs, followed closely by the construction sector, which lost 1,814 jobs. Other sectors facing notable reductions included leisure and hospitality, financial activities, and professional and business services.

Despite the widespread losses, the education and health services sector added 1,978 jobs, driven by growth in social assistance and nursing and residential care facilities. The trade, transportation, and utilities sector also saw a modest increase, adding 1,791 jobs. While Oregon's labor force participation rate remained steady at 63%, the unemployment rate rose to 4.1%, highlighting ongoing challenges in the state's labor market.

Amid these employment shifts, wage dynamics in Oregon have evolved significantly over the past five years. Between 2019 and 2024, annual average wages increased by 17%, driven by substantial growth in key sectors. The federal government led the way with a 32.65% increase, followed by the information sector at 28.64%. Other sectors such as leisure and hospitality (31.30%) and natural resources and mining (26.52%) also saw remarkable gains, reflecting expanding economic opportunities in these industries.

However, wage growth varied significantly across sectors. Financial activities saw the slowest increase at just 6.03%, highlighting notable disparities. The most substantial gains were driven by government and private industries such as leisure and hospitality and information.

Key Findings—Oregon December 2024 Employment Data 

• In December, Oregon's total nonfarm payroll employment decreased by 4,922 jobs. The education and health services sector led job growth, adding 1,978 jobs, primarily driven by growth in social assistance and nursing and residential care facilities.
•  The trade, transportation, and utilities sector also added 1,791 jobs in December.
•   Preliminary employment figures for November were revised downwards.
•  Since January 2020, Oregon's total employment has increased, with private-sector employment up by 1,392 jobs and government employment increasing by 17,583 jobs.
•   Only two out of eleven major sectors added jobs in December.
•  The manufacturing sector experienced the largest decline, losing 1,876 jobs, the steepest drop among major sectors. The construction and leisure and hospitality sectors also posted declines of 1,814 jobs and 1,090 jobs, respectively.
•  The state's unemployment rate increased to 4.1% in December, slightly above the 4.0% rate from November and the 3.9% rate from a year ago.
•  Oregon's labor force participation rate (LFPR) remained unchanged at 63% in December.
• According to the BLS survey of establishments (CES), Oregon recovered to its pre-pandemic employment-to-population ratio in August 2021 and has remained above that level since.
•  According to the BLS measure of local employment (LAUS), which captures both traditional jobs and self-employment, Oregon's employment recovered to its pre-pandemic level in March 2021 and has remained above since.

A Deeper Dive into Oregon Industries 

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  In December, total nonfarm payroll employment in Oregon decreased by 4,922 jobs. The education and health services sector countered this trend by adding 1,978 jobs, with significant contributions from social assistance and nursing and residential care facilities, which saw the most notable increases. 

   

• In contrast, the manufacturing sector, a critical pillar of Oregon’s economy, faced the most significant job losses, shedding 1,876 positions. This downturn underscores the persistent challenges within this foundational industry.

• The trade, transportation, and utilities sector added 1,791 jobs in December, highlighting sustained growth in this crucial sector.

• In December, nine out of eleven major sectors in Oregon's economy shed jobs, with manufacturing recording the most significant losses, followed closely by the construction industry, which lost 1,814 jobs.

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  The government sector experienced a slight decrease of 990 jobs, with reductions in federal and local government employment offsetting a small gain in state government.

• Other notable job losses in Oregon's economy include the financial activities sector, which decreased by 1,212 jobs; the professional and business services sector, down by 1,067 jobs; and the leisure and hospitality sector, which dropped by 1,090 jobs.

• The mining and logging, and information sectors each posted modest declines in employment, with losses of 100 jobs and 190 jobs, respectively.

• Since January 2020, private-sector employment in Oregon has increased by 1392 jobs, while government employment grew by 17,583 jobs, led by gains in state and local government.

• Seven of the eleven super-sectors remain below their January 2020 employment levels, including mining and logging, manufacturing, information, leisure and hospitality, and financial activities. 

  • The mining and logging sector continue to lag the most, with employment 8.96% lower than in January 2020.

  • In contrast, the government sector has shown the most significant growth, expanding by 5.86 % since January 2020, driven largely by gains in state government.

  Oregon Labor Force Update

  Oregon's Labor Force Participation Rate (LFPR) held steady at 63% in December. The preliminary figures for November, initially reported at a 4.1% unemployment rate, have been revised downward to 4.0%. In contrast, the seasonally adjusted unemployment rate for December registered a slight increase to 4.1%.

Key Findings—Oregon December ‘24  Labor Force Data 

• Oregon's labor force participation rate (LFPR) stands at 63%, an increase of 1.9 percentage points since January 2020.
•  The unemployment rate (seasonally adjusted) increased to 4.1% in December.

Data Sources