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Oregon's jobless rate hits 9.9 percent
By William McCall, Associated Press Writer
Friday, February 27, 2009 | No comments posted.
PORTLAND — A dismal report on rising unemployment in Oregon shows the jobless rate up to 9.9 percent as the state’s economy sinks faster than most others in the nation.
The January employment numbers for Oregon showed the state lost 14,600 jobs as the unemployment rate jumped nearly a percentage point from December, when Oregon ranked the sixth worst in the country.
“Oregon has been hit harder than the nation over the last year,” said Art Ayre, state labor economist.
The figures released Thursday showed declines across six of the eight largest industry sectors in Oregon, led by the loss of 4,500 jobs in trade, transportation and utilities, about 4,400 jobs in manufacturing and 2,100 in construction.
“The downturn in this recession did appear to start with construction and wood product manufacturing, but it is very widespread at this point,” Ayre said.
Overall, nearly 215,000 Oregonians were unemployed in January, by far the largest number since World War II.
Nationally, the unemployment rate has also risen rapidly, from below 5 percent in early 2008 to 7.6 percent in January.
The Oregon jobless rate has been higher than the national rate for more than a decade, but the difference has widened over the past few months.
From December 2007 to December 2008, Oregon’s unemployment rate rose 3 percentage points, the fastest 12-month rise since 1980, when the state was heavily dependent on wood products and went into recession rapidly.
Ayre said the economy has diversified significantly in the past 30 years but the few bright spots for January were in educational and health services, which added 2,100 jobs, and financial services which was almost unchanged.
Gov. Ted Kulongoski offered reassurances that state officials were doing everything they can to put people back to work.
“Today’s news isn’t just a number. It represents our family members and neighbors deeply affected by this recession,” Kulongoski said in a statement released Thursday.
The governor said the state is on schedule to break ground on $175 million worth of deferred maintenance for public buildings, universities and community colleges to repair the infrastructure and provide jobs.
But Republicans criticized Kulongoski and fellow Democrats for considering some tax and fee increases during a recession.
Oregon House Republican Leader Bruce Hanna of Roseburg said GOP lawmakers have a plan to create at least 6,000 new jobs “without raising taxes and fees.”
Ayre said that Oregon’s jobless rate has increased partly because the labor force swelled by 50,000 people over the last year — just as employers started paring their payrolls.
In addition to the impact of population growth, Ayre said, the work force may have increased because people who had been retired or had been staying home now are back in the job market to boost household income.
Even though the figures are steadily worsening, Oregon’s unemployment numbers still have a way to go until they reach the low point the state hit in the early 1980s.
Employment Department spokesman Tom Fuller said the state trust fund that pays unemployment claims remains in good shape and is designed to withstand a moderate recession for about 18 months.
Rankings for states for January will not be available until mid-March.
The January employment numbers for Oregon showed the state lost 14,600 jobs as the unemployment rate jumped nearly a percentage point from December, when Oregon ranked the sixth worst in the country.
“Oregon has been hit harder than the nation over the last year,” said Art Ayre, state labor economist.
The figures released Thursday showed declines across six of the eight largest industry sectors in Oregon, led by the loss of 4,500 jobs in trade, transportation and utilities, about 4,400 jobs in manufacturing and 2,100 in construction.
“The downturn in this recession did appear to start with construction and wood product manufacturing, but it is very widespread at this point,” Ayre said.
Overall, nearly 215,000 Oregonians were unemployed in January, by far the largest number since World War II.
Nationally, the unemployment rate has also risen rapidly, from below 5 percent in early 2008 to 7.6 percent in January.
The Oregon jobless rate has been higher than the national rate for more than a decade, but the difference has widened over the past few months.
From December 2007 to December 2008, Oregon’s unemployment rate rose 3 percentage points, the fastest 12-month rise since 1980, when the state was heavily dependent on wood products and went into recession rapidly.
Ayre said the economy has diversified significantly in the past 30 years but the few bright spots for January were in educational and health services, which added 2,100 jobs, and financial services which was almost unchanged.
Gov. Ted Kulongoski offered reassurances that state officials were doing everything they can to put people back to work.
“Today’s news isn’t just a number. It represents our family members and neighbors deeply affected by this recession,” Kulongoski said in a statement released Thursday.
The governor said the state is on schedule to break ground on $175 million worth of deferred maintenance for public buildings, universities and community colleges to repair the infrastructure and provide jobs.
But Republicans criticized Kulongoski and fellow Democrats for considering some tax and fee increases during a recession.
Oregon House Republican Leader Bruce Hanna of Roseburg said GOP lawmakers have a plan to create at least 6,000 new jobs “without raising taxes and fees.”
Ayre said that Oregon’s jobless rate has increased partly because the labor force swelled by 50,000 people over the last year — just as employers started paring their payrolls.
In addition to the impact of population growth, Ayre said, the work force may have increased because people who had been retired or had been staying home now are back in the job market to boost household income.
Even though the figures are steadily worsening, Oregon’s unemployment numbers still have a way to go until they reach the low point the state hit in the early 1980s.
Employment Department spokesman Tom Fuller said the state trust fund that pays unemployment claims remains in good shape and is designed to withstand a moderate recession for about 18 months.
Rankings for states for January will not be available until mid-March.
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