Oregon Jobs and Labor Force – February 2025 Update

Oregon’s Labor Market Signals Stability, but Sectoral Unevenness Persists

Oregon’s job market entered 2025 on steady footing. While total nonfarm employment was essentially unchanged in February, labor force participation remained elevated at 62.7%—1.6 percentage points above its pre-pandemic level—indicating that Oregonians continue to actively seek and engage in work.

But the overall stability masks sharp divergences across sectors. Construction employment dropped by 2,200 jobs in February—the largest single-month decline in since April 2020. Manufacturing, which had been steadily losing ground, posted a modest gain of 600 jobs. Professional and business services and information continued to expand, while local government hiring added further stability. Meanwhile, the state’s unemployment rate rose to 4.5%, the highest since mid-2021.

Key Highlights—Oregon February 2025 Employment Data 

• Oregon’s total nonfarm payroll employment edged down by 100 jobs in February, marking a marginal shift in the state’s labor market.
• Professional and business services led all industry sectors in job creation, adding 1,697 positions, followed by the information sector with a gain of 704 jobs.
• The manufacturing sector rebounded with an increase of 600 jobs, signalling a potential turnaround after a period of sustained job losses.
• Since January 2020, the state has added 32,400 jobs overall, including 13,000 private-sector jobs and 19,400 government positions.
• Six out of eleven major industry sectors posted job gains in February.
• The construction sector experienced the steepest contraction, shedding 2,196 jobs and erasing nearly half of the cumulative gains realized over the past quarter.
• Declines were also observed in financial activities (-698) and education and health services (-500).
• Oregon’s seasonally adjusted unemployment rate rose to 4.5%, a 0.1 percentage point uptick from January and the highest rate since August 2021.
• The labor force participation rate (LFPR) held steady at 62.7%, reflecting continued engagement in the labor market.
• The Current Employment Statistics (CES) survey indicates that Oregon has yet to fully return to its pre-pandemic employment-to-population ratio.
•  However, estimates from the Local Area Unemployment Statistics (LAUS) program that Oregon’s total employment surpassed pre-pandemic levels as early as September 2021 and has remained above that benchmark.

Industry-Level Dynamics

The modest net decline in payroll employment conceals significant sectoral shifts:

• The construction sector experienced the largest absolute decline, with a loss of 2,196 jobs, offsetting a substantial portion of recent gains.
• Financial activities continued a downward trend, contracting by 698 jobs, while education and health services also declined by 500 positions.
• Conversely, professional and business services posted strong growth, adding 1,697 jobs, indicating robust demand for professional, technical, and administrative services.
• The information sector gained 704 jobs.
• Manufacturing showed positive momentum with a gain of 600 jobs, a reversal after a period of sustained job losses.
• The government sector recorded a net gain of 500 jobs, driven entirely by local government hiring (+600). Federal employment declined by 100, and state-level employment remained flat.
• Other modest gains were observed in leisure and hospitality (+100).

Since the onset of the pandemic:

• Total nonfarm employment in Oregon has increased by 32,400 jobs.
• However, five of eleven super-sectors remain below their February 2020 employment levels: mining and logging, manufacturing, information, leisure and hospitality, financial activities.

Notably:

• Manufacturing employment is 7.49% below its pre-pandemic baseline.
• In contrast, education and health services employment has grown by 9.31%, and government employment has expanded by 6.46%, demonstrating resilience and long-term sectoral growth.

Oregon Labor Force Update 

• Oregon’s LFPR was unchanged at 62.7% in February, maintaining its 1.6 percentage point increase compared to January 2020—a sign of stronger-than-expected labor force engagement post-pandemic.
• The unemployment rate rose to 4.5%, marking a gradual upward drift and possibly indicating a loosening of labor market tightness.

Technical Notes and Data Sources

All data are seasonally adjusted unless otherwise noted. Employment estimates derive from the Oregon Current Employment Statistics (CES) survey and are benchmarked to Bureau of Labor Statistics (BLS) data through January 2025. Labor force estimates come from the Local Area Unemployment Statistics (LAUS) program. February 2025 CES and LAUS estimates are extrapolated using monthly growth rates from the Oregon Employment Department’s February release.