Oregon’s Unemployment Rate Rises to 4.5% in February

Salem, Oregon- Oregon’s unemployment rate increased to 4.5% in February, up from 4.4% in January, according to the latest data from the Oregon Employment Department. The rate has gradually risen over the past year from 4.1% in February 2024. February’s figure marks the highest unemployment rate in the state since August 2021, when the rate stood at 4.7%. It is also slightly higher than the rates seen during the three years leading up to the COVID-19 recession in 2020. The U.S. unemployment rate was 4.1% in February, up from 4.0% in January.

Oregon’s seasonally adjusted nonfarm payroll employment declined by 100 jobs in February, following a revised gain of 3,500 jobs in January. Professional and business services led job gains in February, adding 1,700 positions. The information sector added 700 jobs, manufacturing gained 600 jobs, and government employment increased by 500 jobs. The largest job losses occurred in construction, which shed 2,200 jobs. Private educational services lost 900 jobs, while financial activities declined by 700 jobs.

Two segments within professional and business services increased hiring in February. Professional and technical services added 1,300 jobs after gaining 1,100 in January, reversing a gradual decline of 1,500 jobs over the previous 22 months. Administrative and waste services added 400 jobs in February. However, this sector has cut 5,600 jobs since reaching a peak of 106,600 jobs in March 2022.

Over the past 12 months, Oregon’s payroll employment has grown modestly, adding 18,500 jobs, or 0.9%. Health care and social assistance accounted for the largest share of job growth, increasing by 14,000 jobs, or 4.8%. Government added 8,700 jobs, representing a 2.8% increase. Manufacturing posted the largest losses among major industries, shedding 6,000 jobs, or 3.2%. Construction and retail trade each lost 1,800 jobs over the year, down 1.5% and 0.9%, respectively.

The data indicates a slowing pace of job growth in Oregon, with gains concentrated in a few key sectors while others continue to decline.