Oregon’s unemployment rate dropped to a record low of 4.5 percent in March–the lowest point since comparable records began in 1976. Oregon’s February unemployment rate was 4.8 percent. A year ago, in March 2015, Oregon’s unemployment rate was 5.7 percent.
With the U.S. unemployment rate at 5.0 percent in March, and Oregon’s unemployment rate at 4.5 percent, this puts Oregon’s rate half a percentage point below the U.S. rate. The last time Oregon’s rate was half a percentage point below the U.S. rate was in November 1995.
The total number of Oregonians employed in March reached 1.94 million, which was up substantially from 1.84 million in March 2015. The rapid rise in the number of employed is the main driver of an increase in Oregon’s labor force participation rate, which shot up to 62.3 percent in March from a recent low of 60.8 percent in March 2015.
“Rapid job growth and a historically low unemployment rate mean that Oregon’s labor market is stronger than it’s been in decades,” said state employment economist Nick Beleiciks. “Businesses are raising wages to attract the help they need, and it’s working because people are flocking to Oregon’s labor force.”
Oregon’s payroll employment grew by 3,900 in March, following a revised gain of 7,400. The March gain was close to the average monthly pace seen over the past three years. In March, three major industries each added more than 1,000 jobs: health care and social assistance (+1,400 jobs), wholesale trade (+1,300) and professional and business services (+1,200). Meanwhile, three major industries cut close to 1,000 jobs apiece: private educational services ( 1,200 jobs), construction (-900) and manufacturing (-700).
The tightening of Oregon’s labor market is leading to rapidly rising wages, with the average hourly wage up by 4.6 percent over the year. In March, the average wage was $24.45 per hour for Oregon’s private sector payroll employees, which was 10 cents more than the $24.35 in February. This measure of wages has increased $1.07 per hour, or 4.6 percent, since March 2015 when the average was $23.38 per hour.
