Job Losses Continue in Oregon; Unemployment Rate Rises to 5%
Oregon’s labor market contracted further in July, with seasonally adjusted nonfarm payroll employment down 2,750 jobs. This marks the third consecutive month of decline and follows a revised June loss of 4,300 jobs. The state’s unemployment rate climbed to 5.0%, up from 4.3% in December 2024 and above the national rate of 4.2%, signaling comparatively weaker labor market conditions.
Losses were broad based, led by steep declines in Financial Activities (−2,720), Education and Health Services (−1,820), and Professional and Business Services (−1,450). Manufacturing shed 400 jobs in July, though this figure does not yet reflect the impact of large-scale layoffs at Intel, which began after the July survey reference week. Those layoffs—affecting more than 2,300 employees—are expected to appear in the August data. Gains in Construction(+3,000) and Trade, Transportation, and Utilities (+910) partly offset the losses, but overall employment remains below its recent peak.
Key Highlights—Oregon July 2025 Employment Data
- Overall Losses: Total nonfarm payrolls fell by 2,750 jobs, with the private sector down 2,440.
- Largest Declines: Financial Activities (−2,720), Education and Health Services (−1,820), Professional and Business Services (−1,450), and Information (−630).
- Goods-Producing Weakness: Manufacturing (−400) and Mining and Logging (flat) showed little improvement; Construction rebounded with +3,000 jobs after three months of losses.
- Service Sector Mixed: Trade, Transportation, and Utilities added 910 jobs—driven by Transportation, Warehousing, and Utilities (+800)—while Retail (+300) gains were offset by Wholesale (−210) losses. Other Services gained +730 jobs; Leisure and Hospitality was flat.
- Public Sector Dip: Government employment fell by 300 jobs, led by Local Government (−510) and Federal Government (−100), partly offset by State Government (+300).
- 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
- Overall Employment: Oregon’s seasonally adjusted total nonfarm payroll employment continued to decline, falling by 2,750 jobs in July. In contrast, national employment increased.
- Private Sector Losses: The private sector shed approximately 2,440 jobs, extending its downward trend.
- Financial Activities, Professional and Business Services, and Education and Health Services Hit Hard: Financial Activities saw the steepest decline, losing 2,720 jobs, followed by Education and Health Services (−1,820) and Professional and Business Services (−1,450).
- Manufacturing and Government Sectors Down: Manufacturing lost nearly 400 jobs, while the Government sector declined by about 300 jobs. Losses in Government were driven primarily by Local Government (−510), while Federal Government shed 100 jobs and State Government added roughly 300 jobs.
- Information Sector: Employment fell by approximately 630 jobs.
- Other Services: Employment increased by around 730 jobs.
- Construction Sector Up: The sector added 3,000 jobs in July, rebounding after three consecutive months of job losses.
- Trade, Transportation, and Utilities Sector Gained: Employment increased by 910 jobs in July, led by Transportation, Warehousing, and Utilities (+800). Retail Trade added 300 jobs, while Wholesale Trade lost about 210 jobs.
- Little Change in Several Industries: Employment was relatively flat in Mining and Logging, and in Leisure and Hospitality.
Since the Onset of the Pandemic:
- Total nonfarm employment in Oregon has increased by 33,250 jobs since January 2020.
- However, five of the eleven supersectors remain below their pre-pandemic levels: Mining and Logging; Manufacturing; Trade, Transportation, and Utilities; Financial Activities; and Leisure and Hospitality.
Notable shifts:
- Manufacturing employment remains well below pre-pandemic levels—down 8.7% compared to January 2020. Mining and Logging and Financial Activities are also lower, by 7.5% and 7.9%, respectively.
- In contrast, Education and Health Services employment has grown by 11%, driven largely by gains in Health Care and Social Assistance, which is up 13.3%.
- Government employment has also increased, rising 5.8% since January 2020.
Oregon Labor Force Update
- Labor Force Participation Rate (LFPR): Oregon’s LFPR was revised to 62.7% for June and rose to 62.8% in July—up 1.7 percentage points since January 2020. This remains above the national LFPR of 62.2% in July 2025.
- Unemployment Rate: Oregon’s unemployment rate continued to climb in July, reaching 5.0%. Nationally, the rate also inched up to 4.2%.
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 June 2025. Labor force estimates come from the Local Area Unemployment Statistics (LAUS) program. June 2025 CES estimates are extrapolated using monthly growth rates from the Oregon Employment Department’s July release.