Six Thousand Oregon Businesses Shut Down in Nine Months as Job Market Weakness Deepened

Six thousand businesses closed in Oregon in the first nine months of 2025, according to the U.S. Bureau of Labor Statistics (BLS).

The Professional and Business Services sector was hardest-hit with the largest contraction, followed by the construction industry, where contracts slowed because of high interest rates, and the labor force shrank by 5,000 positions.

The 2025 closures far outstripped the 1,700 businesses that shut their doors in 2024, according to the BLS.

Statistics Paint a Grim Economic Scenario

These statistics paint a grim scenario of the present-day economic landscape.

During the first nine months of 2025, the state’s private sector shrank by approximately 22,700 jobs.

Professional and business services saw the largest reduction, shedding 7,500 jobs. Manufacturing lost 4,600 jobs, driven by high-profile layoffs at firms like Intel and Owens Corning. Construction dropped by 5,100 jobs, and the Retail sector saw a decrease of 4,500 jobs.

However, healthcare remained a bright spot, adding 8,900 jobs to meet the demands of an aging population.

Oregon Has High Unemployment and a Shrinking Labor Market

Oregon has one of the highest unemployment rates in the country, ranked at No.3 nationally, and while labor markets expanded nationally, the Beaver State’s job growth has remained stagnant since 2023.

Observers believe that prospective new business entrepreneurs remain hesitant as economic uncertainty and a shrinking labor pool darken the horizon.

Business closures have become more prevalent since the COVID-19 pandemic, and although a significant number of new businesses have been launched, they are outnumbered by closures.