Hopefuls gather at job fair
Jobseekers line up to speak to a recruiter from Oregon Health and Science University during a career fair in Portland in September.
(Randy L. Rasmussen/The Oregonian)
Oregon's unemployment rate slid below the U.S. average in March, an unremarkable note if not for one thing.
The last time that happened "Braveheart" was on the verge of sweeping the Oscars and a different Clinton was on the presidential campaign trail.
It has been awhile.
Nineteen years and two months, to be exact, according to a report issued Tuesday by the Oregon Employment Department. Since then, the state has consistantly faced higher rates of unemployment than the rest of the country.
But the Employment Department said that wasn't the case in March, when Oregon's unemployment rate was 5.4 percent, and the national average 5.5 percent.
"The unemployment rate being lower than the U.S. (average) is what stood out to us this month," state labor economist Nick Beleiciks said.
"That's a new development."
At just one-tenth of a percentage point, analysts cautioned against the statistical significance of the gap between the statewide and national unemployment rates. But even that thin margin signaled to Beleiciks how far along the job market has come, particularly in the past year:
- The state's jobs base expanded by 3.3 percent, or by about 56,100 jobs. Some sectors, such as those encompassing white-collar firms and healthcare providers, grew even faster. Last month, employers added a net 4,300 positions after adjusting for seasonal factors.
- At the same time, the unemployment rate has declined from 7.1 to 5.4 percent. The measure fell from 5.8 to 5.4 percent between March and February, partly because of the new jobs and partly because an influx into the labor market has tapered off.
- Fewer people are being laid off, and workers who do lose their jobs are finding work more quickly.
"But," Beleiciks said, "there's still a lot of longterm unemployed."
That's what makes March 2015 so different from January 1996, the last time the unemployment rate was lower in Oregon than nationwide. Back then, employers were also adding a lot of jobs, and the unemployment rate was the same as it is now.
Unlike that era, though, one-third of unemployed Oregonians this time have been out of work for six months or more. That rate shot up to 46 percent in the middle of the recession, but employers are still hesitant to hire people who have been unemployed long-term.
The problem is especially severe in rural communities, which are struggling to bring jobs back at all.
"Growth in new business has been very, very slow in this area," said Donna Bowman, executive director of Klamath and Lake Community Action Services in Klamath Falls.
"I don't think we're moving as fast as the rest of the state."
Stagnating wages are another sign the economy hasn't fully healed from the economic crisis. Paychecks in Oregon, like much of the United States, have not grown nearly as fast as new jobs.
"That's the salient factor here," said Jon Stubenvoll, director of advocacy for the Oregon Food Bank. Demand for its assistance reached record highs during the economic crisis and leveled off, but has yet to lessen. Its network of food banks serves 260,000 Oregonians a month.
"As wage levels lag, people are going to still need help," Stubenvoll said.
The new state report shows that may be beginning to change. Oregon's private-sector workers earned $23.35 per hour, on average, in March. That's up 49 cents, or 2.1 percent, from March 2014.
-- Molly Young
myoung@oregonian.com
503-412-7056
@mollykyoung