Economist: Oregon economy expanding

By William McCall, AP Business Writer
Tuesday, December 13, 2005 | 3 comment(s)

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PORTLAND — After recovering the 64,000 jobs lost during the recession, the Oregon economy has become the sixth-fastest growing state economy in the nation as a steady yearlong expansion continued in November with the latest unemployment numbers still falling.

The seasonally adjusted unemployment rate fell to 5.8 percent in November to mark the second straight month the rate has been below 6 percent — a level not seen since 2001.

For the past 12 months, nonfarm payroll employment in Oregon has risen 3.1 percent — double the national average.

Those numbers, combined with the fact that the state had recovered all the jobs it lost in the recession by last January, indicate the Oregon economy is one of the healthiest in the country, said Art Ayre, the state labor economist.

“This is certainly an expansion. We’re adding jobs above where we were prior to the recession,” Ayre said, adding, “The expectation is that we will hold on to these jobs.”

Nationally, the unemployment rate has been flat for the past six months, ranging from 4.9 percent to 5.1 percent. It was unchanged from October, remaining at 5 percent in November.

The Oregon jobless rate for October was revised by the state Employment Department to 5.9 percent, matching the rate in April 2001, just before the jobless number climbed above 6 percent to eventually peak at 8.5 percent in the middle of the recession that kept Oregon at the highest jobless rate in the nation for about three years.

“We’ve come a long way over the last three years — from an 8.5 percent unemployment rate to 5.8 percent,” said Gov. Ted Kulongoski, who joined Ayre to announce the November figures.

The Democratic governor, who is facing a tough re-election campaign and criticism for his handling of the state budget, said he hopes the expansion will boost options to increase education funding, infrastructure investment and perhaps convert the so-called “kicker” tax refund into a rainy day fund to avoid the kind of budget cutting that was needed during the recession.

Overall, employment rose statewide by 3,600 jobs in November when a loss of 4,000 would have been the typical seasonal trend.

Ayre said the strong November figures for Oregon were spread across four of its major industries — trade, transportation and utilities, educational and health services, construction and manufacturing.

Trade, transportation, and utilities showed the largest seasonally adjusted gain of the major industries by adding 4,100 jobs for the month.

For October and November — the first two months of the holiday hiring season — retail trade employment was up 9,500 jobs, or about 2,000 jobs more than the average gain during the same months during the previous four years.

For November, retail trade hiring was about normal, adding 7,300 jobs for a 3.6 percent increase.

Educational and health services added 3,300 jobs in November, more than triple the normal seasonal growth for the month.

Construction employment dropped by only 900 jobs in November, at a time of year when typical seasonal declines would number 2,700. The industry has grown rapidly over the past two years, expanding by 17,800 jobs since November 2003.

Manufacturing cut only 2,200 jobs in November at a time of year when a drop of 3,600 would be normal.

The only poor performance was the leisure and hospitality industry, which cut 4,300 jobs in November — 1,700 jobs deeper than the typical loss for the month.

Oregon fell back to No. 6 nationally for its unemployment rate in October, when Louisiana and Mississippi again led the nation. Louisiana had an 11.3 percent jobless rate while Mississippi was 9.6 percent, due largely to Hurricane Katrina damage.

Overall, 101,985 Oregonians were unemployed in November compared with 128,393 without jobs in November 2004, when the unemployment rate was 7.2 percent.

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On the Net:

Oregon employment figures: http://www.QualityInfo.org

For help finding jobs and training resources: http://www.WorkSourceOregon.org.
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OCAPA wrote on Aug 6, 2007 9:37 AM:

Although it is terrible that the tragedy in MN had to happen, it's refreshing to hear that Gov. Kulongoski is going forward with suggestions from the Oregon Concrete and Aggregate industries. The concrete and cement people have been yelling about the importance of these inspections and maintenance of bridges for years.

Pancho wrote on Jul 15, 2007 12:58 PM:

My kids are illegal, can we still get free lunch?

Just An Observer wrote on Nov 29, 2006 5:05 PM:

We need all the hydro power we can get. It's non-polluting and doesn't result in any global warming increase. If needed, rebuild the dams to be as fish friendly as possible but don't cut the flow of juice. Our nation's increasing demand for electricity means we need to keep in place all the hydro we can, otherwise we'll have to build even more polluting power stations or deal with even more nuclear waste that no state wants as we head toward building more nuclear plants. Sometimes choosing what is needed isn't easy but aquaculture can breed a lot more fish to make up for Klamath salmon runs being down much easier than we can build more power plants.


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