Oregon Unemployment Tops the Nation as Job Losses Mount Across Construction and Tech Sectors
The Oregon unemployment rate continues its relentless climb, and by May 2025, had 0.6% more residents out of work than any state nationwide.
Oregonians Out of Work in May Reached 4.8%
Unemployment in the state is now pegged at 4.8% compared with 4.7% in April, and steadily climbing from 4.1% in May last year.
Construction Industry Continues to Plummet
The construction industry continued its downward spiral, shedding 1,700 jobs in May. This industry peaked in mid-2023 with 119,000 people employed but has since shed 6,700 positions, representing a downward spiral of 5.6%.
According to the Oregon Employment Department, the seasonally adjusted non-farm payroll declined by 1,400 jobs, following its gain of 1,000 posts in April.
The two other industries with significant job losses were manufacturing at -1,200, and professional and business services at -900.
Semiconductor Industry Continues to Shed Posts
The manufacturing sector has been declining for the past two years and has lost 6,100, jobs since May 2024, representing a decline of 3.3%. The hardest hit is the semiconductor industry and other electronic component manufacturing where 2,900 jobs were cut, representing a shrinkage of 8.7% positions.
Next was transportation equipment manufacturing at -500 posts, and fruit and vegetable preserving and specialty food manufacturing with a loss of 400 jobs.
But Oregon’s Leisure and Hospitality Industries Continue to Shine
The largest gains recorded in May were in the leisure and hospitality (+1,300) transportation, warehousing, and utilities (+1,200); and health care and social assistance (+900) sectors.
Despite the gloomy picture painted by a stagnant construction industry, it is Oregon’s leisure and hospitality sector that is showing significant growth, adding 1,300 jobs in May. This brings the total growth rate of the leisure and hospitality sector to an additional 6,000 jobs for the year.
Although the 4.8% unemployment rate indicates that Oregonians are living on tighter budgets, the three industries that grew rapidly over the past 12 months indicate the opposite – amusement, gambling, and recreation.
These three sectors added a combined 1,700 posts, representing 8.5% of the workforce in the state. Limited-service restaurants and other eating places added 3,600 jobs (4.8%), and accommodation 1,100 jobs (4.5%).