Rural Oregon Faces Economic Fallout as The Trump Administation Slashes Federal Jobs
The rural areas of Oregon will bear the brunt of the Trump administration’s cutback on federal posts.
According to a report from the Oregon State Employment Economist, the number of jobs lost, and the agencies affected by the Trump administration’s cutback on government spending is unknown. However, the impact of job revenue losses will be felt most heavily in the state’s rural areas.
Three Federal Government Sectors Excluded from the Cutbacks
Three federal government sectors have been excluded from the job cutbacks – the U.S. Postal Service which is one of Oregon’s largest federal employers, the Military, and Federal Law Enforcement.
Oregon had 28,750 federal jobs, representing 1.5% of the state’s total employment numbers in the first quarter of 2024, and the top 10 counties by share of all jobs in the federal government were rural areas.
Sherman County’s federal government postings were almost 14% of all jobs in the county. Second was Grant at 9%, followed by Harney (8%), and Lake (7%) counties.
Economists Anna Johnson and Gail Krumenauer note that federal jobs in Oregon pay 36% more than average wage levels, while the gap is even more pronounced in rural areas.
Federal Government Pay Scales in Oregon Rural Areas Far Outstrip the Average Wage Level of Other Jobs
The economists say that in Wasco County in 2023, the annual average federal government wage is $106,400, more than double the $53,100 average level of all other jobs.
Federal government pay scales in Sherman County were 82$ more than the average for all sectors, while Lincoln County federal workers earned an average of 79% more than all other jobs in 2023.
On Wednesday, the federal government issued a memo instructing senior officials to draw up plans to cut back employee numbers.
After firing thousands of probationary workers, the Trump administration is focused on career officials with civil service protection.
Agencies Have Until 13 March to Submit Cutback Plans
In the memo, Russell Vought, director of the White House’s Office of Management and Budget, directs agencies to submit plans for streamlining their workforce by 13 March and to implement plans by mid-April, with completion date set at the end of September.
Oregon chief economist, Carl Riccadonna, says the federal government employs tens of thousands of Oregonians but that data on unemployment claims by workers who have been laid off will not be available until mid-March.