Oregon Paychecks Fall Behind as Inflation Cuts Into Workers’ Buying Power
Oregon paychecks are not keeping up, and as prices nationwide soar, the state’s workers are falling even further behind.
Inflation and Cost-of-living Leave Oregonians Worse Off
A recent report indicates that private-sector wages and salaries nationwide increased by 3.1% during the year ending in June 2026. But after adjusting for inflation, private-sector wages actually fell 0.4%.
At the same time, benefit costs increased by 3.8%, meaning employers’ compensation expenses rose faster than workers’ actual wages.
Coming in above average, state and local government wages increased 3.4%, yet even these increases still effectively declined 0.1% after adjusting for cost of living.
| Worker group | Wages | Real wages | Benefits |
|---|---|---|---|
| Private industry | Up 3.1% | Down 0.4% | Up 3.8% |
| State and local government | Up 3.4% | Down 0.1% | Up 4.0% |
Source: U.S. Bureau of Labor Statistics Employment Cost Index, June 2026
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A Bureau of Labor Statistics (BLS) report indicates that, in Oregon, private-sector workers earned an average of $1,265 per week in June.
This is the average weekly wage across Oregon’s 1.7 million private-sector workers. Average weekly earnings were 3.2% lower than one year earlier after adjusting for cost of living, and this $1,265 paycheck had purchasing power equivalent to about $1,223 after accounting for the state’s higher cost of living.
The Portland- Vancouver- Hillsboro average wage was highest at $1,35k while Grants Pass came in lowest at an average of $950
But the sectors are reflecting vast pay scale differences: Construction workers averaged $1,804 weekly, while leisure and hospitality workers averaged just $623.
Source: Bureau of Labor Statistics June 2026 earnings data
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This broadly matches the national average where construction workers earned $1,625 and leisure and hospitality workers got just $602.
Despite what looks like a higher-than-average wage, while Oregon ranked 14th for average weekly earnings, the state fell to 22nd after adjusting for living costs.
The states with the highest wages after adjusting for inflation are:
- North Dakota: $1,438
- Washington: $1,413
- Massachusetts: $1,345
On the other end, the states with the lowest wages after adjusting for inflation are:
- Delaware: $1,076
- Maine: $1,138
- New Hampshire: $1,145