Oregon unemployment rate rises to 5%, worst since COVID-19 pandemic

PORTLAND, Ore. (KOIN) — Oregon’s unemployment rate has reached 5% according to the latest update from the Oregon Employment Department.

The state lost 2,700 non-farm jobs in July, following a loss of 8,600 jobs in June.

“Newly revised data show that over the past year, Oregon employers lost 24,600 jobs. That’s a decline of 1.2%,” State Employment Economist Gail Krumenauer said in a media briefing Aug. 14.

Nationwide, U.S. employers added 73,000 jobs across the country in July, falling short of the 115,000 that were expected. The national unemployment rate also increased slightly between June and July, from 4.1 to 4.2%.

There are a few reasons for the differences in Oregon’s unemployment and the national rate. Krumenauer said Oregon’s labor force has grown modestly in recent months, and most of that growth is among unemployed workers. At the same time, she added, the U.S. labor force is declining.

Oregon has historically had a higher unemployment rate than the country, but 5% is still significant for the state.

“If you take out the pandemic period, the last time unemployment was this high for Oregon was 2016,” she said.

The bulk of Oregon’s job losses in July came from financial activities such as professional and business services, plus health care and social assistance. Overall, manufacturing jobs have declined the most since July 2024, decreasing 5% with 9,400 positions cut.

Meanwhile, most of the job openings in Oregon continue to be in private healthcare and social assistance, which have added 10,000 jobs since July 2024.