Oregon’s Unemployment Rate Down Slightly in August

The U.S. unemployment rate was 4.7 percent in August, about the same as during the past eight months when the rate was between 4.6 percent and 4.8 percent.

(PORTLAND) - Oregon’s seasonally adjusted unemployment rate in August was essentially unchanged at 5.5 percent, from 5.6 percent in July.

The state’s unemployment rate has been stable this year, with the rate staying between 5.3 percent and 5.6 percent for the first eight months of the year.

Oregon’s seasonally adjusted nonfarm payroll employment rose by 3,500 jobs in August. The July figure was revised higher and now shows a gain of 7,200.

Industry Payroll Employment (Establishment Survey Data) Nonfarm payroll employment expanded substantially in July and August.

The revised employment total for July now shows a seasonally adjusted gain of 7,200, which is nearly double the preliminary estimate for the July gain.

August posted a gain of 3,500 jobs, which was roughly in line with the average gain so far this year of 4,000 jobs per month.

In August, job gains in four major industries more than offset substantial losses in three other major industries.

Construction, trade, government, and educational and health services each expanded their seasonally adjusted employment by more than 1,000 jobs.

Manufacturing, professional and business services, and leisure and hospitality each declined by 800 jobs or more.

Construction added 1,200 jobs above its normal August trend. Although the industry has seen a slowdown in its growth rate, it is still up 9,800 jobs over the past 12 months. Construction, at total employment of 107,000, again hit a record level for any month.

All sectors within construction added jobs in August, with notable strength in residential building construction (+800 jobs), building equipment contractors (+900) and building finishing contractors (+400).

Trade, transportation, and utilities added 2,700 jobs in August at a time of year when a gain of 600 would be normal.

Wholesale trade added 1,000 jobs, with each of its three component industries adding workers. Retail trade added 900 jobs; food and beverage stores added 400, and nonstore retailers added 500.

Not all components of retail posted gains, as motor vehicle and parts dealers as well as building material and garden supply stores each cut their workforce by 500.

Meanwhile, truck transportation added 300 jobs to boost overall transportation and warehousing employment by 700 in August.

Government employment has ticked up in each of the past two months, with seasonally adjusted job gains of 3,000 in July and 2,800 in August.

These job gains have contributed substantially to gains in total nonfarm payroll employment. However these summer gains may be short lived, given the highly seasonal nature of government employment in the summer.

Local government education employment will be watched closely in the next two months to see if the less-than-normal summer slowdown there reverts back to normal when October’s data becomes available.

Local education added 1,000 jobs in August and now stands at 77,700, which is up 3,500 jobs from the year-ago figure.

Other employers in the local government sector have reported high summer employment levels, thus contributing to the over-the-year job gain of 4,600 in local government.

Many of these added workers may indeed turn out to be temporary hires, with employment returning closer to year-ago levels by autumn.

Educational and health services continued its long-term trend of rapid growth, adding 1,400 jobs in August.

Continually increasing demand for health care and social assistance has resulted in growth in that industry’s employment by 6,400 in the past 12 months.

Manufacturing posted a seemingly weak showing in August, with a drop of 1,400 jobs. Much of the reason for the drop is due to food manufacturing’s 900-job cutback in August.

Food manufacturing put up strong job counts in the winter months, and has now reverted to more normal employment levels in the summer.

August employment here was 23,200, which was close to the level it reached in August 2005 when it employed 23,700.

Plywood and engineered wood product manufacturing cut 500 jobs in August, the biggest such cutback in durable goods manufacturing.

One bright note was plastics and rubber products manufacturing, which added 300 and is up 800 jobs over the past 12 months.

Most other industries within manufacturing showed little employment change for the month.

Professional and business services seems to be following the trend in Oregon’s overall economy in the past year, but in a pronounced fashion.

Seasonally adjusted employment in the industry surged in the winter but in recent months has been growing at a more moderate pace.

Although seasonally adjusted employment dropped by 800 in August, it has grown by 400 jobs over the past three months.

In August, professional and technical services added 500, while the other sectors were typically down modestly.

Leisure and hospitality employment dropped by 1,000 jobs when a gain of 400 would be normal for the month.

The industry has been on a flat trend for nearly the past year, after a substantial spike upward in employment about a year ago.

Longer term, the industry, which is comprised primarily of restaurants, has added 7,100 jobs over the past two years.

Unemployment (Household Survey Data) Oregon’s seasonally adjusted unemployment rate was 5.5 percent in August and 5.6 percent in July. The rate has been essentially the same throughout this year. The August rate was below the year-ago figure of 6.2 percent.

In August, 98,722 Oregonians were unemployed, compared with 110,480 in August 2005. August marked the first month since December 2005 when the number of unemployed has dropped below 100,000.