Oregon s Payroll Employment Dropped by 6,400 in February While the Unemployment Rate Held Steady at 8.8 Percent
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1 FOR IMMEDIATE RELEASE: March 20, 2012 PRESS CONFERENCE PRESENTER: Nick Beleiciks, State Employment Economist CONTACT INFORMATION: David Cooke, Economist (503) Oregon s Payroll Employment Dropped by 6,400 in February While the Unemployment Rate Held Steady at 8.8 Percent Oregon s seasonally adjusted unemployment rate was 8.8 percent in February, which was unchanged from January. Meanwhile, the U.S. seasonally adjusted unemployment rate was 8.3 percent in both January and February. Industry Payroll Employment (Establishment Survey Data) Oregon s seasonally adjusted nonfarm payroll employment fell 6,400 in February, following a revised gain of 3,700 in January. February job losses were largest in construction ( 2,000 jobs); trade, transportation and utilities ( 2,000); and professional and business services ( 1,500). None of the major industries saw gains of more than 300 jobs. February Labor Market Highlights Oregon s seasonally adjusted unemployment rate, which has generally declined for more than two years, was 8.8 percent in February and 8.8 percent in January. Oregon s seasonally adjusted nonfarm payroll employment dropped by 6,400 in February. February employment estimates for several major industries fell below recent trends, including large drops in construction and in trade, transportation and utilities. Percent 12.0 Oregon unemployment rate, seasonally adjusted Millions 1.8 Oregon nonfarm payroll employment, seasonally adjusted
2 Employment Department News Release Page 2 of 4 March 20, 2012 The payroll employment numbers for February are preliminary estimates produced by the U.S. Department of Labor s Bureau of Labor Statistics. As is true each month, the estimates are revised at the time of the next press release as additional information comes in from late reporting businesses on the establishment survey. Furthermore, the estimates are revised each year based on data from all employers reporting their quarterly tax reports. In February, construction cut 1,400 jobs when a gain of 600 is the normal seasonal movement. Heavy and civil engineering construction cut 500 jobs. Specialty trade contractors cut 1,200, as each of its four components shed jobs. being more than two and a half years along. It employed only 8,100 in February, which was about 500 jobs below its comparable levels in February of the prior two years. This industry, which is comprised of many smaller firms that build homes and apartments, averaged close to 10,000 jobs in 1995 through Then, during the housing boom, it surged to annual 350,000 Oregon Seasonally Adjusted Employment Trade, transportation, and utilities Residential building construction has yet to see a substantial upturn, despite the economic recovery INDUSTRY Seasonal Expectations and Over the Month Employment Changes January to February 2012 Normal Seasonal Movement Unadjusted Change Seasonally Adjusted Change Total nonfarm payroll employment 13,100 6,700-6,400 Total private 8,500 1,900-6,600 Mining and logging Construction 600-1,400-2,000 Manufacturing Trade, transportation, and utilities -2,100-4,100-2,000 Information , , , , ,000 Government Educational and health services Professional and business services Manufacturing Leisure and hospitality Financial activities Financial activities Professional and business services 2, ,500 Educational and health services 4,100 3, ,000 Other services Construction Information Leisure and hospitality 1,000 1, Other services 1, Government 4,600 4, Mining and logging
3 Employment Department News Release Page 3 of 4 March 20, 2012 employment of nearly 16,000 by In contrast, the first two months of 2012 put the industry on track for the lowest winter employment totals since Nonresidential construction employed 7,000 in February, and like residential construction, it too has not expanded substantially from its low of this business cycle. Last month s employment was only about 400 above its February totals from one and two years ago, but was still more than 2,000 jobs below its winter figures of 2006 through Specialty trade contractors employed 40,400 in February. This was very close to its lowest employment figure since the mid 1990s. Only a few winter months over the past couple of years have been below 40,000 for this industry. Looking at seasonally adjusted employment data, February s loss in construction came as a surprise given the slowly expanding trends in the industry throughout most of 2011, when it added 3,800 such jobs. But both January and February 2012 saw declines in construction, putting February s figure of 68,300 just 300 jobs above February Trade, transportation, and utilities cut 4,100 jobs in February, when a loss of half that is the normal seasonal pattern. Larger than normal losses in wholesale trade ( 400 jobs) and retail trade ( 3,600) were the primary reasons for February s lackluster performance. The subpar performance in this broad industry group retraced a spike upward in January s seasonally adjusted jobs figures. February s figure puts the industry back on the track of its slow, long term gains seen over the past two years. Each of the three components of the broader industry have seen their seasonally adjusted job totals growing moderately and fairly consistently since reaching a post recession trough close to December Job gains since then have been as follows: wholesale trade (+1,800 jobs, or 2.5%); retail trade (+4,500 jobs, or 2.5%); and transportation, warehousing and utilities (+1,300 jobs, or 2.5%). Coincidentally, each of the three components is up exactly 2.5 percent over that 26 month period December 2009 through February Professional and business services added only 800 jobs, when a gain of 2,300 is the normal seasonal pattern for February. Most industries within the broad category were relatively flat for the month. The exception was professional and technical services, which added 900 jobs in February. This industry, which includes law firms, engineering services, and computer systems design, has fully recovered its employment following the recessionary downturn. In fact, February s employment total of 74,900 tied the record high employment figure, which was also reached in April and October of Hours and Earnings (Establishment Survey Data) The average workweek for Oregon manufacturing production workers dropped sharply over the past two months. In December, these workers averaged 41.0 hours per week, while by February, the average fell to 39.4 hours, putting the workweek close to its 2011 average. Average earnings of all private sector payroll employees in Oregon dipped slightly to $22.24 per hour in February from $22.39 in January. The February figure was up 49 cents per hour, or 2.3 percent, from February Unemployment (Household Survey Data) The national unemployment rate was unchanged at 8.3 percent in February. Oregon s unemployment rate remained unchanged at 8.8 percent in February. The difference between the Oregon and the U.S. unemployment rates was not statistically significant.
4 Employment Department News Release Page 4 of 4 March 20, 2012 The latest figures indicate that Oregon s seasonally adjusted unemployment rate has generally been on a declining trend for the past two and a half years, after reaching a high point of 11.6 percent in May and June At 8.8 percent in February, it has not been lower since November 2008, when Oregon s rate was 8.4 percent. In February, 192,932 Oregonians were unemployed. This is 16,118 fewer individuals than in February 2011 when 209,050 Oregonians were unemployed. Next Press Releases The Oregon Employment Department plans to release the February county and metropolitan area unemployment rates on Tuesday, March 27 th and the statewide unemployment rate and employment survey data for March on Tuesday, April 17 th. For many years, monthly employment estimates for Oregon and its metropolitan areas were developed by Oregon Employment Department economists. In March 2011, responsibility for the monthly employment estimates for Oregon and its metropolitan areas shifted to the U.S. Bureau of Labor Statistics (BLS). The estimates developed by BLS are more heavily dependent on the sample of businesses and less reliant on knowledge of local economic events. They are also likely to demonstrate increased month to month variability. Comments or questions should be directed to Graham Slater, Administrator of the Oregon Employment Department's Workforce and Economic Research Division, at (503) For the complete version of the news release, including tables and graphs, visit: If you need this release in the Spanish language, please contact Loretta Gallegos at For help finding jobs and training resources, visit one of the state's WorkSource Oregon Centers or go to: Equal Opportunity program auxiliary aids and services available upon request to individuals with disabilities
5 Workforce and Economic Research 2011 Benchmark March 20, 2012 Oregon Current Labor Force and Industry Employment February January February Change From Change From January 2012 February 2011 Labor Force Status Civilian labor force 1,981,129 1,972,841 1,979,911 8,288 1,218 Unemployed 192, , ,050 4,266-16,118 Unemployment rate Unemployment rate, seasonally adjusted Employed 1,788,197 1,784,175 1,770,861 4,022 17,336 Nonfarm Payroll Employment Total nonfarm payroll employment 1,599,700 1,593,000 1,596,600 6,700 3,100 Total private 1,302,600 1,300,700 1,293,000 1,900 9,600 Mining and logging 6,600 6,400 6, Logging 5,200 5,100 5, Construction 63,300 64,700 62,900-1, Construction of buildings 15,100 14,800 15, Residential building construction 8,100 8,200 8, Nonresidential building construction 7,000 6,600 6, Heavy and civil engineering construction 7,800 8,300 8, Specialty trade contractors 40,400 41,600 39,300-1,200 1,100 Building foundation and exterior contractors 5,600 6,100 7, ,500 Building equipment contractors 22,600 22,900 18, ,700 Building finishing contractors 7,500 7,800 8, Other specialty trade contractors 4,700 4,800 5, Manufacturing 162, , , ,000 Durable goods 117, , , Wood product manufacturing 18,300 18,500 19, Sawmills and wood preservation 5,700 5,600 5, Plywood and engineered wood product mfg. 6,700 6,800 6, Other wood product manufacturing 5,900 6,100 6, Primary metal manufacturing 7,400 7,700 7, Fabricated metal product manufacturing 14,900 14,900 14, Machinery manufacturing 11,100 11,000 10, Computer and electronic product manufacturing 36,600 36,500 35, Semiconductor and electronic component mfg. 27,300 27,200 26, Electronic instrument manufacturing 5,000 5,000 5, Transportation equipment manufacturing 11,100 11,200 10, Nondurable goods 45,300 45,200 47, ,800 Food manufacturing 21,300 21,400 22, ,000 Fruit and vegetable preserving and specialty 7,300 7,300 8, Paper manufacturing 4,700 4,800 5, Trade, transportation, and utilities 309, , ,100-4,100 3,900 Wholesale trade 74,600 75,000 73, ,400 Merchant wholesalers, durable goods 30,700 31,100 30, Merchant wholesalers, nondurable goods 30,600 30,300 29, Electronic markets and agents and brokers 13,300 13,600 12, Retail trade 181, , ,600-3,600 2,100 Motor vehicle and parts dealers 20,800 21,300 21, Building material and garden supply stores 12,600 12,300 12, Food and beverage stores 38,100 38,300 37, Clothing and clothing accessories stores 15,100 15,800 15, Sporting goods, hobby, book and music stores 9,800 10,100 9, General merchandise stores 37,500 38,400 37, Miscellaneous store retailers 9,400 9,300 9, Nonstore retailers 5,600 6,000 6, or2012est.xlsm "CLFIE" Page 1 of 2 David Cooke (503)
6 February January February Change From Change From January 2012 February 2011 Transportation, warehousing, and utilities 52,700 52,800 52, Utilities 4,600 4,600 4, Transportation and warehousing 48,100 48,200 47, Truck transportation 17,200 17,100 16, Couriers and messengers 6,300 6,300 6, Warehousing and storage 6,500 6,500 6, Information 31,900 31,800 32, Publishing industries, except internet 13,900 13,900 14, Newspaper, book, and directory publishers 4,600 4,600 5, Software publishers 9,300 9,300 9, Telecommunications 6,600 6,600 6, Financial activities 91,300 90,900 91, Finance and insurance 56,000 56,300 56, Credit intermediation and related activities 27,400 27,500 27, Insurance carriers and related activities 23,100 23,400 23, Real estate and rental and leasing 35,300 34,600 35, Real estate 31,800 31,000 30, ,800 Professional and business services 181, , , Professional and technical services 74,900 74,000 74, Legal services 11,000 11,000 12, ,000 Architectural and engineering services 12,800 12,700 12, Computer systems design and related services 10,600 10,600 10, Management of companies and enterprises 29,800 29,900 30, Administrative and waste services 76,500 76,500 77, ,400 Administrative and support services 71,900 71,500 72, ,000 Employment services 28,400 28,000 28, Business support services 13,000 13,000 13, Services to buildings and dwellings 16,200 16,300 16, Educational and health services 240, , ,600 3,500 5,600 Educational services 36,800 34,200 35,100 2,600 1,700 Health care and social assistance 203, , , ,900 Ambulatory health care services 72,800 72,000 70, ,900 Hospitals 54,400 54,500 53, ,000 Nursing and residential care facilities 44,800 44,600 43, ,200 Social assistance 31,400 31,400 31, Leisure and hospitality 159, , ,300 1, Arts, entertainment, and recreation 18,200 18,000 21, ,000 Amusement, gambling, and recreation 14,100 13,900 15, ,500 Accommodation and food services 140, , ,100 1,100 3,700 Accommodation 19,800 19,800 19, Food services and drinking places 121, , ,700 1,100 3,300 Full-service restaurants 58,700 58,500 56, ,800 Limited-service eating places 50,400 49,700 49, Other services 57,600 57,000 56, ,300 Repair and maintenance 14,900 15,000 15, Personal and laundry services 12,600 12,600 12, Membership associations and organizations 30,100 29,400 28, ,500 Religious organizations 17,500 16,900 16, Government 297, , ,600 4,800-6,500 Federal government 26,800 26,900 27, ,100 State government 81,900 79,800 81,900 2,100 0 State education 33,600 31,400 32,700 2, Local government 188, , ,800 2,800-5,400 Indian tribal 8,300 8,400 8, Local education 100,600 98, ,700 2,600-5,100 Labor-management disputes The most recent month is preliminary, the prior month is revised. Prepared in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics. Labor Force Status: Civilian labor force includes employed and unemployed individuals 16 years and older by place of residence. Employed includes nonfarm payroll employment, self-employed, unpaid family workers, domestics, agriculture and labor disputants. Unemployment rate is calculated by dividing unemployed by civilian labor force. Nonfarm Payroll Employment: Data are by place of work and cover full- and part-time employees who worked or received pay for the pay period that includes the 12th of the month. The data exclude the self-employed, volunteers, unpaid family workers, and domestics. Cautionary Note to Users: Starting in December 2009, revised estimation procedures mandated by the U.S. Bureau of Labor Statistics may result in unusually large or volatile monthto-month employment changes. These survey-based estimates are revised annually, based on more complete information from quarterly employer tax records. or2012est.xlsm "CLFIE" Page 2 of 2 David Cooke (503)
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