Oregon’s Unemployment Rate Rises to 5.6 Percent in July

The U.S. unemployment rate was 4.8 percent in July.

Photo by: Tim King

(SALEM) - Oregon's seasonally adjusted unemployment rate in July was essentially unchanged at 5.6 percent, from 5.4 percent in June. The state's unemployment rate has been stable this year, staying between 5.3 percent and 5.6 percent since January.

Oregon's seasonally adjusted nonfarm payroll employment added 3,900 jobs in July. That made up for a decline of 3,700 jobs in June, according to revised figures. Over the past 12 months, payroll employment added 51,500 jobs to grow by 3.1 percent.

Industry Payroll Employment (Establishment Survey Data)

Oregon's total nonfarm payroll employment fell by 18,700 jobs in July. This was largely due to seasonal declines in education. Growth in nonfarm payroll employment slowed in recent months. W

hile the overall trend is still upward, data for two of the past four months - April and June -showed job declines on a seasonally adjusted basis. Sectors contributing to this development included: leisure and hospitality, manufacturing, educational and health services, and construction. In July, most sectors reported job growth. Two major industries - leisure and hospitality (+3,800 jobs) and trade, transportation, and utilities (+3,000 jobs) - far exceeded their typical seasonal gains for the month. The public sector shed 30,700 jobs as most school activity came to a close.

* Construction set a new employment record in July. It added 2,100 jobs for a total of 103,900 jobs. July's growth was 900 jobs short of typical gains.

Construction grew by nine percent since July 2005.

Building construction added 400 jobs due to activity in nonresidential building construction. Residential building construction employment was flat in July.

Specialty trade contractors increased by 1,600 thanks to gains among building foundation and exterior contractors (+700) and building finishing contractors (+600). No components of the construction sector reported a job decline in July; activity was up or flat.

* Leisure and Hospitality grew by 3,800 jobs in July - twice its typical gain for the month. Accommodation and food services was the engine for this growth.

It added 4,300 jobs. A majority of the jobs were created in food service and drinking places, which added 2,900 jobs. Arts, entertainment, and recreation lost 500 jobs and shed 2,500 jobs over the year. Leisure and hospitality grew by 4,800 jobs since July 2005.

* Trade, transportation, and utilities enjoyed strong growth in July, adding 3,000 jobs when it typically adds around 800. This growth was due to activity in the trade sector (+2,800 jobs). Transportation, warehousing, and utilities added 200 jobs.

Wholesale trade grew by 1,100 jobs, spurred by a 700-job increase among merchant wholesalers of nondurable goods. Retail trade grew by 1,700 jobs, with strength in several areas. Food and beverage stores added 700 jobs, and nonstore retailers added 400 jobs. Building material and garden supply stores added 300 jobs, as did sporting goods, hobby, book and music stores. A large decline of 600 jobs was reported for clothing and clothing accessories stores. * Manufacturing added 2,400 jobs in July - 500 less than typical seasonal gains.

The majority of growth was in nondurable goods (+2,200 jobs). The manufacturing sector gradually trended downward on a seasonally adjusted basis in recent months. It added 5,300 jobs since July 2005.

Nondurable goods manufacturing took off in July with the seasonal processing of summer crops. Fruit and vegetable preserving and specialty establishments reported a gain of 2,000 jobs. Nonfood components of nondurable goods reported flat job activity.

* Government shed 30,700 jobs in July. This was brought on by seasonal reduction of staff at educational institutions. These reductions totaled 5,700 jobs at the state level and 25,900 jobs for local governments.

Unemployment (Household Survey Data)

Oregon's seasonally adjusted unemployment rate was 5.6 percent in July and 5.4 percent in June. The rate has essentially held steady so far this year. The July

rate was down marginally from the year-ago figure of 6.2 percent. In July,

101,864 Oregonians were unemployed, compared with 114,047 in July 2005.