Job Losses Deepen In Oregon; Unemployment Rate rises to 4.9%

Oregon’s labor market contracted further in June, with seasonally adjusted nonfarm payroll employment declining by 4,300 jobs. This follows a downward revision to May’s figures, which now reflect a loss of 2,100 jobs, reinforcing a two-month trend of broad-based job decline. The state’s unemployment rate rose to 4.9%, up from 4.3% in December 2024 and notably above the national rate of 4.1%, indicating relatively weaker labor market conditions.

Losses in June were concentrated in both goods-producing and core service sectors. Other Services (−1,440), Manufacturing (−1,200), and Construction (−400) posted the steepest declines. The reported manufacturing losses do not include the impact of recent layoffs at Intel, which occurred outside the reference period for June’s survey data. Leisure and Hospitality also saw significant losses (−1,000), led by a drop of 1,300 jobs in Accommodation and Food Services. In contrast, Health Care and Social Assistance added 900 jobs, partially offsetting a 600-job loss in Educational Services. The Information sector also added 500 jobs. Meanwhile, total nonfarm employment across the U.S. rose by 147,000 jobs in June.

Key Highlights—Oregon June 2025 Employment Data 

• Core industries weakened: Manufacturing (−1,200), Other Services (−1,440), and Construction (−400) posted the largest losses, signalling sustained pressure in both goods-producing and essential service sectors.
• Service-sector decline led by hospitality: Leisure and Hospitality shed 1,000 jobs, driven by a sharp loss in Accommodation and Food Services (−1,300), only partly offset by modest gains elsewhere in the sector.
• Health care offsets losses in education: Education and Health Services added 300 jobs overall, with a 900-job gain in Health Care and Social Assistance balancing out a 600-job drop in Educational Services.
• Professional services retrench: Professional and Business Services lost 700 jobs in June, led by a 1,400-job decline in Professional, Scientific, and Technical Services, partially offset by gains in Administrative and Support Services.
• Mixed results elsewhere: Information added 500 jobs. Financial Activities was flat overall, with a slight gain in finance and insurance (+100) offset by a loss in real estate and rental and leasing (−100). Mining and Loggingshowed little change. Within Trade, Transportation, and Utilities, wholesale trade added 500 jobs, while retail trade declined by 700. 
• Public sector declined overall: Government employment fell by 600 jobs, as Local Government dropped 400 and Federal Government 200; State Government remained unchanged.
• 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 its downward path, declining by 4,300 jobs in June. In contrast, national employment rose. May estimates for Oregon were also revised downward.
• Private Sector Losses: Most of the losses occurred in the private sector, which shed about 3,700 jobs, continuing its downward trend.
• Other Services, Manufacturing, and Leisure and Hospitality Hit Hard: The Other Services sector saw the steepest decline, losing 1,400 jobs, followed by Manufacturing (−1,200) and Leisure and Hospitality (−1,000). Losses in Leisure and Hospitality were driven by job cuts in Accommodation and Food Services (−1,300).
• Professional and Business Services Down: The sector lost nearly 1,000 jobs, mostly due to a 1,400-job decline in Professional, Scientific, and Technical Services, which was only partially offset by gains in Administrative and Support Services.
• Education and Health Services Up: The sector added 300 jobs, led by 900 jobs gained in Health Care and Social Assistance, despite a 600-job loss in Educational Services.
• Information Sector Gained: The Information sector added 500 jobs in June.
• Little Change in Several Industries: Employment was relatively flat in Mining and Logging, Transportation and Warehousing, and Financial Activities.
• Government Sector Down: Government employment fell by 600 jobs, with local government down 400. Federal and state government employment was mostly unchanged.

Since the Onset of the Pandemic:

• Total nonfarm employment in Oregon is up 36,700 jobs since January 2020.
• However, five of eleven supersectors remain below pre-pandemic levels: Mining and Logging, Manufacturing, Trade, Transportation and Utilities, Financial Activities, Leisure and Hospitality.

Notable shifts:

• Employment in Manufacturing remains well below pre-pandemic levels—down 8.4% compared to January 2020. Mining and Logging and Financial Activities are also down, by 5.9% and 5.3%, respectively.
• In contrast, Education and Health Services employment has grown by 11.4%, driven largely by gains in Health Care and Social Assistance, which is up 13.5%.
• Government employment has also risen, up 6% since January 2020.

Oregon Labor Force Update 

• Labor Force Participation Rate (LFPR): Oregon’s LFPR increased to 62.8% in June, up 1.7 percentage points since January 2020. This rate remains above the national LFPR, which stood at 62.3% in June 2025.
• Unemployment Rate: Oregon’s unemployment rate rose to 4.9%, continuing a gradual ascent that suggests easing labor-market tightness. Nationally, the unemployment rate has held stable around 4.1%, inching down slightly in recent months.

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 May 2025. Labor force estimates come from the Local Area Unemployment Statistics (LAUS) program. May 2025 CES estimates are extrapolated using monthly growth rates from the Oregon Employment Department’s June release.