Oregon’s Manufacturing Slump Hits Timber and Tech Jobs Hard as Unemployment Ticks Up

Jobs in the Oregon manufacturing industry including the computer and electronic sectors have been declining steadily for the last two years in a pattern that shows no signs of abating anytime soon. The industry cut 6,900 jobs, or –3.7% in the 12 months through January,

Wood products also fall under the manufacturing mantle and the loss of 200 jobs in this industry indicates the state’s declining revenue from timber sales.

Intel slashed 1,300 posts mainly at its Hillsboro campus in a cost-cutting measure as the semiconductor manufacturer faced ever-increasing financial pressure.

The loss of jobs in the timber industry has been caused by strict environmental regulations, limited logging on federal lands, and increasing wildfires. This has caused mills to close and placed an economic strain on rural communities.

Oregon’s Overall Unemployment Rate Now Stands at 4.4%

Oregon’s unemployment rate has been rising gradually since January 2024 from 4.1% to 4,4% by January 2025, according to the Oregon Employment Department.

The state’s 4.4% unemployment rate in January was the highest since September 2021, above the nationwide rate of 4.1% in December 2024 and 4% in January 2025.

In January, Oregon added 2,400 jobs in seasonally adjusted nonfarm payroll employment. This increase followed a revised decline of 2,000 jobs in December 2024. The state recorded the largest employment gains in the professional and business services category with an additional 1,400 jobs.

This was followed by leisure and hospitality +1,200; private educational services and retail trade, both +900.

The manufacturing industry recorded the largest declines –2,200, with –1,300 fewer positions in the health care and social assistance categories.

From January 2024 to 2025, the private sector added 12,700 jobs. This represented an increase of 0.8%, for the 12-month period. Job gains last year were less than previously indicated because yearly data revisions resulted in an average reduction of 15,600 jobs a month during the last six months of 2024.

Health Care and Social Assistance are the Fastest Growing Employment Sectors

The fastest growing employment sectors in Oregon for the last three years is health care and social assistance which added 15,100 jobs, representing 5.2%, in the 12 months through January.

However, the largest strike in the history of Oregon staged in January by healthcare workers employed by the Providence Hospital Group accounted for a one-month drop of 1,300 jobs in the industry.

Modest growth rates were recorded for the 12 months by other services – +2,100 jobs, or 3.2%; private educational services – +1,100 jobs, or 3.0%; professional and business services – +2,900 jobs, or 1.1%; and construction – +900 jobs, or 0.8%).

Retail also stumbled, dropping 2,300 posts, representing 1.1% of the state’s workforce.