Oregon's Unemployment Rate Jumps to 7.2 Percent in August
But something else was also happening: Oregon's labor force was growing.
(SALEM, Ore. ) — Oregon's unemployment rate edged up, from 6.9 percent in July to 7.2 percent in August.
This was the highest unemployment rate since November 2013 when the rate was 7.3 percent, but far below the high point of the last recession, in June 2009, when the rate was 11.6 percent.
It may seem surprising for the unemployment rate to go up when Oregon is adding jobs. But something else was also happening: Oregon's labor force was growing.
If migration to Oregon from other states increases and more people start looking for work because they feel their prospects are improving, then both of these factors lead to more Oregonians joining the labor force. If this growth in the labor force is larger than the number of new jobs created, then the unemployment rate will go up, at least in the short term.
So how many jobs did Oregon add?
The primary measure of employment in Oregon, seasonally adjusted nonfarm payroll employment, increased by 2,900 in August. This was the 12th increase in the last 14 months. Employment is now 40,700 above where it was a year ago and 127,300 above its recessionary low.
With the recent and steady job growth, Oregon is now just 20,100 from its pre-recession employment peak reached in December 2007.
In August, two industries performed particularly well, with large gains in seasonally adjusted employment.
Professional and business services added 900 jobs while manufacturing added 1,000. Over the past 12 months, manufacturing grew faster than overall employment. It added 5,500 jobs since August 2013, with substantial gains in these component industries: wood product manufacturing ( +900 jobs), machinery manufacturing ( +900), transportation equipment manufacturing ( +500), and food manufacturing ( + 700).
Payroll employment in July was revised upward to a gain of 1,300, compared with the original estimate of a gain of only 200.
The average Oregon manufacturing production worker worked 39.9 hours in August, down 1.4 hours from a year ago. This drop in hours worked per employee is not unusual, given the overall employment growth in the manufacturing industry.
Oregon wages haven't grown as fast as inflation over the past year. In August, the average wage for Oregon's private sector payroll employees was $22.53, a 0.9% increase from a year earlier.
Source: Oregon Employment Department
