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June Oregon Statewide Unemployment Rate
7/19/2011
Oregon's Unemployment Rate Essentially Unchanged
CONTACT: David Cooke, Economist
Oregon Employment Department
(503) 947-1272
david.c.cooke@state.or.us  
 

June Labor Market Highlights

• Oregon’s seasonally adjusted unemployment rate, at 9.4 percent, was essentially unchanged in June and close to the U.S. unemployment rate of 9.2 percent.
 
• Local government education took a big hit, cutting 3,900 jobs in June. It employed 102,200, which was 4,600 below its year-ago figure.
 
• Private payrolls showed strong growth in June, adding 3,700 jobs on a seasonally adjusted basis. This gain was largely offset by a drop of 2,900 in government.
Oregon’s seasonally adjusted unemployment rate was 9.4 percent in June, essentially unchanged from the May rate of 9.3 percent. Meanwhile, the U.S. seasonally adjusted unemployment rate was 9.2 percent in June and 9.1 percent in May.  
Industry Payroll Employment (Establishment Survey Data)
Over the past four months the trend in payroll employment was close to flat. Seasonally adjusted nonfarm payroll employment rose 800 in June, following a revised gain of 700 in May. April also saw a relatively small monthly gain of 1,100 jobs and March declined by 2,000. These small monthly movements over the past four months put Oregon’s payroll employment at 1,625,500 in June, which was only 600 above the February total of 1,624,900. This indicates essentially no payroll employment gains since February, following strong gains totaling 22,800 during the prior four-month period of October through February.
 
In June, three major industries added more than 1,000 jobs on a seasonally adjusted basis: professional and business services (+1,200 jobs), educational and health services (+2,200), and leisure and hospitality (+4,400). Over the month, three other major industries showed weaker job performance than normal for June: government ( 2,900 jobs), manufacturing (-2,000), and trade, transportation and utilities ( 1,800).
 
Since June 2010, Oregon’s economy added jobs in the private sector, while government employment has been cut. Total private employment (on a seasonally adjusted basis) is up 29,600 jobs or 2.3 percent. Meanwhile, government employment is down by 9,100 jobs or -3.0 percent. Most private-sector industries have expanded during the past year of economic recovery, with most of the major industries up by between 1.3 and 2.4 percent. Powering over half of the gains in the private sector were the two industries that each added more than 8,000 jobs during that 12-month period: educational and health services (+8,600 jobs) and leisure and hospitality (+8,300). While other services (-900 jobs) and mining and logging (-300) have seen cutbacks, none of the major industries have contracted by more than 1,000 jobs since June 2010.
 
On the other hand, government was affected by budget reductions, cutting its seasonally adjusted employment by 9,100 jobs or 3.0 percent since June 2010.
 
Professional and business services added 3,600 jobs in June, when a gain of 2,400 is the normal seasonal pattern. This major sector resumed its expansion following a pullback over the prior two months. Administrative and waste services, which makes up nearly half of professional and business services, added 3,000 jobs in June. Within that category, monthly gains were led by employment services (+700 jobs) and services to buildings and dwellings (+900).
 

INDUSTRY Normal Seasonal Movement Unadjusted Change Seasonally Adjusted Change
Total nonfarm payroll employment 12,000 12,800 800
Total private 9,700 13,400  3,700
Mining and logging 400 -100  -500
Construction 2,500 2,700  200
Manufacturing 3,300 1,300 -2,000
Trade, transportation, and utilities 3,000 1,200 -1,800
Information 0  -200 -200
Financial activities 300 800 500
Professional and business services 2,400 3,600 1,200
Educational and health services  -5,900  -3,700 2,200
Leisure and hospitality 3,700 8,100 4,400
Other services 0 -300 -300
Government 2,300  -600 -2,900
Educational and health services was expected to post a June job loss of 5,900 due to the normal seasonal pattern. However, this month, this major industry sector only cut back by 3,700. Private education cut 3,400 jobs heading into summer, but is up 300 from June 2010. Meanwhile, health care and social assistance was off by 300 in June, but is up 5,800 jobs or nearly 3 percent over the prior 12 months. Each of its four component industries were up by close to 1,500 jobs over the past 12 months as demand for both health care of all types and social assistance appear to be growing inexorably.  
Leisure and hospitality vaulted to a gain of 8,100 jobs in June when a gain of less than half that amount would be normal due to seasonality. Employment surged this year to 175,700 in June, 8,400 above the level in June 2010. The industry recorded its highest June reading since June 2008, when 178,900 were employed. Within the major industry category, arts, entertainment, and recreation added 1,600 jobs in June to reach 26,200, its highest level ever. Meanwhile, accommodation and food services picked up its hiring recently, with employment up by 6,500 in June. Accommodation rose by 1,700 in June and at 22,300 jobs is now close to its year-ago figure. Food services and drinking places added 4,800 jobs in June and is 4,100 above its June 2010 figure. Full-service restaurants is a category that has been particularly strong, adding 2,400 in June and 2,900 over the past 12 months.
 
Government cut 600 jobs in June, at a time of year when a gain of 2,300 is the normal seasonal pattern. Local government education accounted for the bulk of the below-normal jobs picture. It cut 3,900 jobs in June, as many school districts and community colleges recorded substantially lower employment totals than in June 2010. Local government education was down 4,600 jobs or 4.3 percent since June 2010. Federal  government added 1,200 jobs in June, as many federal agencies that deal with agriculture and forestry ramped up heading into the summer months. Despite this one-month gain, Oregon’s non-military federal government stood at 29,300 in June; its lowest level in decades.
 
Manufacturing added only 1,300 jobs in June, when it normally would add 3,300 due to typical seasonal factors. Nondurable goods manufacturing was primarily responsible for the lackluster showing as it added only 1,100 jobs during its typical expansion leading into summer. Food manufacturing had a higher winter employment level than normal, so its June buildup was less than normal. It added 300 in June and is up 1,500 since June 2010.
 
Trade, transportation and utilities added only 1,200 jobs when a June gain of 3,000 would have matched the typical seasonal pattern. This weakness followed a strong May jobs report, thus the industry is still within it longer-term trend of slow expansion. The sector has grown slowly over the past two years, following its precipitous job losses during late 2008 through early 2009.

Hours and Earnings
(Establishment Survey Data)
The average workweek for Oregon manufacturing production workers was 39.7 hours in June, a gain from 39.3 in May. This measure of the workweek has generally trended higher over the past two years and is now close to levels seen in 2001 through 2005.
Average earnings of all private-sector payroll employees in Oregon edged down to $21.48 per hour in June from $21.57 in May.

Unemployment
(Household Survey Data)
The national unemployment rate edged up to 9.2 percent in June from 9.1 percent in May. Oregon’s June rate of 9.4 percent sits 0.2 percentage point above the U.S. rate. The difference between the Oregon and the U.S. unemployment rates is so close that it is not statistically significant. Since both the U.S. and the Oregon rate rose by a tenth of a point in June, the gap between the two stayed the same.
 
Despite the tenth of a point increase in Oregon’s seasonally adjusted unemployment rate in June, a longer-term view shows a declining trend. Oregon’s unemployment rate peaked in May and June 2009 at 11.6 percent. It then gradually dropped throughout the rest of 2009 and all of 2010, reaching 10.6 percent by December 2010. Then the rate dropped rapidly during January through May, reaching the recent low point of 9.3 percent in May. Other than May, the June reading of 9.4 percent is the lowest rate for Oregon since December 2008, when the rate was 9.2 percent.
Seasonally adjusted employment, as measured by the household survey, took a slight downturn in June, dropping by 2,639 to reach 1,804,697. This small loss followed rapid employment gains during the first four months of the year. Nonetheless, June’s employment reversal, was the first decline in this measure of employment since a loss of 479 in October 2009.
 
In June, 195,422 Oregonians were unemployed. This is 16,629 fewer individuals than in June 2010 when 212,051 Oregonians were unemployed.
 
Please note that this press release contains information from two separate surveys: the establishment survey and the household survey. The establishment survey produces a monthly jobs total, while the household survey produces an employment total. Over the short term of one to several months, these two surveys can produce differing trends. There are several reasons that can cause these dissimilar readings of Oregon’s economy including different entities being sampled and different definitions of what is being estimated. For the June data, both surveys indicated that Oregon’s overall employment trend was close to flat: The establishment survey portrayed minimal jobs expansion, while the household survey indicated a very slight employment decline.

Next Press Releases
The Oregon Employment Department plans to release the June county and metropolitan area unemployment rates on Monday, July 25th and the statewide rate and employment survey data for July on Tuesday, August 16th.
 
For the complete version of the news release, including tables and graphs, visit: www.QualityInfo.org/pressrelease.
 
If you need this release in the Spanish language, please contact Loretta Gallegos at 503-947-1794.
 
For help finding jobs and training resources, visit one of the state's WorkSource Oregon Centers or go to: www.WorkSourceOregon.org.
 
Equal Opportunity program — auxiliary aids and services available upon request to individuals with disabilities