Oregon Job Market Stumbles in July with 4,100 Nonfarm Payroll Job Losses

Oregon's job market weakened in July as nonfarm payroll jobs declined by approximately 4,100 positions. This drop extends across various industries such as professional services, hospitality, government, and manufacturing, despite some sectors continuing to add workers.

The state's unemployment rate remains at 5.2 percent for the seventh consecutive month, surpassing the national level of 4.1 percent by 1.1 percentage points. Approximately 2.1 million Oregonians were employed in July, while about 118,000 were classified as unemployed.

Professional and business services suffered the largest reduction, losing around 1,800 jobs. Leisure and hospitality employment fell by 900 positions, manufacturing declined by 500, and other services also lost 500. In contrast, retail trade added approximately 500 jobs during July, financial activities gained about 400, and mining and logging increased by around 100.

Government payrolls have become smaller, with a decline of approximately 4,500 positions or 1.4 percent between July 2025 and July 2026. Federal employment decreased by about 1,600 jobs, representing a 5.7 percent reduction. State government employment declined by around 200 positions, while local government payrolls decreased by approximately 2,700.

The manufacturing sector presents one of the clearest examples of sustained employment contraction, with Oregon manufacturers eliminating around 10,000 jobs between June 2025 and June 2026. Although manufacturers eliminated approximately 500 positions in July, durable-goods manufacturers lost around 5,800 positions during that period, while nondurable-goods manufacturing lost about 4,200.