Oregon’s Income Growth is the 6th Fastest in the Nation
Oregon average incomes are growing at a rate of the sixth-fastest in the nation and have never been higher, even after accounting for inflation, says former state economist Josh Lehner.
Lehner was commenting on data released in an American Community Survey by the U.S. Census Bureau which reveals that Oregon is extending its trend of declining poverty with average annual household income pegged at $81,160, or 3.1% higher than the national average.
Writing a poverty and progress report in the Oregon Office of Economic Analysis, Lehner says the incomes of typical state households have never been higher, growing by 6% before inflation in 2023, and 2.1% in real, or inflation-adjusted terms.
Oregon Has the 21st Strongest Inflation Rate in the U.S.
The average income earned by Oregonians from 2019 to 2023 increased by 19.5% in nominal terms. This figure reflects an increase of just 2.8% in real terms because of surging inflation. Oregon has the 21st-strongest inflation rate in the country.
Another state trend in recent years has been the narrowing gap in racial income disparities. Lehner says the growth of household income has been the strongest among Black Indigenous People of Color (BIPOC).
He says wages have been the biggest component driving household income, with average earnings of full-time workers rising 5.3% before inflation. Earnings have increased on average by 5.1% annually since 2019.
The strongest household income gains have been recorded in the Bend metro and the Rogue Valley, while Portland metro area is at or near the income gains seen elsewhere.
1 in 8 People Lives Below the Poverty Line
On the flip side of the coin is poverty and, in Oregon, one in eight people live below the federal poverty line.
Lehner says one fact that has stood out in recent years is ‘the number of Oregonians in deep poverty,’ some whose income ‘is less than half of the official poverty level.’ This translates to an annual revenue of $7,000 per person, or $15,000 for a family of four.
The poverty threshold set by the government is a yearly income of $15,480 per person or $31,200 for a family of four.
While Oregon’s poverty threshold remains relatively steady, Lehner says there is an increase in people living in deep poverty.
Poverty Has Been Steadily Increasing Among Hispanic and Latino Residents
The biggest change in the racial poverty gap in recent years has been a steady increase in poverty among Hispanic and Latino residents. However, historically low poverty was recorded in 2023 among Black and American Indian population groups. Poverty among Oregon Blacks is close to 25%, more than double the statewide level.
Clackamas County has the lowest poverty rate in Oregon at 6.6%, while Multnomah County, the largest in the state, has the highest poverty level of 12.9% in the metro area. Although Crook County’s poverty is below 8%, it has one of the highest unemployment rates in Oregon.
Overall, the 2023 survey shows that Oregon household incomes are continuing to rise, although poverty rates among some groups, in some locales, are much higher than statewide.