Oregon Manufacturers Lose 10,000 Jobs Even as National Factory Index Hits Multi-Year High

While recent reports indicate that the national Production Index jumped to its highest level since November 2021, in Oregon, manufacturers are shedding jobs, with 10,000 jobs lost over the last year.

Manufacturing Sector Expands Nationally, But Manufacturing Jobs in Oregon Contract

In the seventh consecutive month of expansion, the July Purchasing Managers Index (PMI) published by the Institute for Supply Management (ISM)  rose to 55.6% in July- its highest reading since May 2022.

At the same time, the Production Index jumped to its highest level since November 2021, increasing 6.3 points to 58.5%.

Manufacturing employment expanded nationally for the first time in 33 months. Computer and electronic products and food manufacturing reported employment growth, while machinery and wood products reported broader industry growth.

On the downside, raw-material prices increased for the 22nd consecutive month, and 62% of manufacturers’ comments were negative.

Oregon Government Data shows manufacturers in the state lost 1,700 jobs in June alone. Oregon lost 600 payroll jobs in June and 8,500 jobs over the year.

Exceeding the statewide net decline, manufacturing employment in the state fell by 10,000 jobs over the year, a decline of 5.6%. Of these lost jobs, 5,800 were lost in the durable-goods manufacturing sector, while nondurable-goods manufacturing shed 4,200 jobs.

It remains unclear if and when July’s national rebound will reach Oregon. The state’s July employment, due for release on Aug. 19, will be a key indicator of whether the state is still lagging behind.