Oregonians Worked Fewer Than 33 Hours a Week in December as Unemployment Hits Third-Highest in U.S.

Indicators of a continuously declining labor market in Oregon are reinforced by federal data, which indicate that, on average, Oregonians worked less than 33 hours a week in December.

Not only are these the fewest weekly working hours since the Great Recession in 2010, but they are also worse than the steep drop recorded during the pandemic.

The Labor Market Faces an Uncertain Future

Coupled with geopolitical conflict, fluctuating tariffs, and a marked decline in consumer confidence, the labor market faces an uncertain future.

According to state economists, when employees work a reduced number of hours, it is a clear indication of a slump in business optimism – a fact borne out by the state’s unemployment rate.

Oregon’s Unemployment Rate is the Third-Highest Among All States

Currently, Oregon’s unemployment rate is the third-highest among all states at 5.2%, with mass layoffs in 2024-25 being a major contributing factor.

Although the state’s economic output improved last summer, this growth failed to translate into higher average weekly working hours.

Writing in their quarterly forecast last month, economists state that it is unclear if reduced working weeks are a ‘signal of impaired business confidence.’

They state that the metric warrants close attention to see if average weekly hours rebound, or if the decline will continue alongside ‘tepid employment gains.’

The Manufacturing Sector is Hard-Hit by the Slump

The slump is hitting manufacturing especially hard, with Oregon work-givers reporting about 1,800 job vacancies in the fall of 2025, roughly 3,600 fewer than for the same period in 2024.

In its quarterly job vacancy report for the final quarter of 2025, the Oregon Employment Department reported nearly 14,500 job vacancies in private healthcare and social services, or nearly one-third of all available vacancies.

Since last December, Oregon has recorded 85,300 active job postings—a decrease of 11.8% year over year and 8.4% quarter over quarter.

The Top 10 Biggest Job Categories in Oregon