Oregon Manufacturing Sector Continues Its Downward Spiral, Shedding Jobs Month-By-Month
The Oregon manufacturing sector continued its downward spiral in June, shedding another 1,200 jobs.
Three contributing factors are cited for the job shrinkage of the state’s manufacturing sector – Oregon’s decline in aerospace manufacturing, the impact of international trade policies, and the high cost of living.
The Manufacturing Sector Has Shed 7,700 Jobs in the Last Year
Job opportunities in the manufacturing sector, vital to the state’s economy, have been declining for the last three years. A whopping 7,700 work posts have been lost in the last 12 months, from June 2024, representing 4.1% of work opportunities in Oregon.
According to the Oregon Employment Department (OED), job losses in the durable manufacturing sector equate to -5,500, or -4.2%, while non-durable goods lost 2,200 jobs, or 3.9%.
Construction Continues Its Downward Trend
The construction industry also continues its downward trend, dropping 400 jobs in June, following a revised loss of 2,000 in May.
Construction employed 117,000 Oregonians in 2022 through 2024. Last month, this figure dropped to 111,600 posts. Losses during the past 12 months were concentrated in specialty trade contractors (-2,600 jobs, or -3.5%) and construction of buildings (-1,800 jobs, or -5.5%).
Oregon’s Unemployment Rate is 0.8% Higher Than the U.S.
Oregon’s overall unemployment rate is gloomy, rising continuously month by month. Last month it rose to 4.9% compared to 4.8% in May, and had gradually increased over the last 12 months from 4.1% in June 2024. The state’s 4.9% unemployment rate is 1.3% higher than the low of 3.6% during spring 2023.
The unemployment rate in the U.S. was 4.1% in June, a substantial 0.8% lower than in Oregon.
Last month, Oregon’s seasonally adjusted non-farm payroll employment declined by 4,300 jobs, following a revised loss of 2,100 jobs in May.
However, June’s losses were largest in other services (-1,400 jobs), manufacturing (-1,200); leisure and hospitality (-1,000 jobs), professional and business services (-700), and retail trade (-700).
The retail trade also continues its slow decline. Last month it offered 201,600 jobs compared to 210,600 in 2022, representing a loss of 900 work posts, or -4.5%. Apart from food and beverage retailers with 47,400 jobs, or 200 more than June 2022, almost every sector of the retail trade shed jobs.
Health Care and Social Assistance Continues to Thrive
As usual, health care and social assistance (+900 jobs) showed the biggest gains. This sector has gained the most jobs of all major industries in the past year, adding 15,800 positions, or 5.3%. During that time, its fastest-growing sectors were social assistance (+6,500 jobs – 8.4%), and nursing and residential care facilities (+3,300 jobs – 5.8%).