Oregon s Unemployment Rate Rose to 8.7 percent in July, as Payroll Employment Increased for the Fifth Consecutive Month

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1 FOR IMMEDIATE RELEASE: August 14, 2012 PRESS CONFERENCE PRESENTER: Nick Beleiciks, State Employment Economist CONTACT INFORMATION: Chris Greaves, Research Analyst (503) Oregon s Unemployment Rate Rose to 8.7 percent in July, as Payroll Employment Increased for the Fifth Consecutive Month Oregon s seasonally adjusted unemployment rate rose to 8.7 percent in July from 8.5 percent in June. Oregon s unemployment rate dropped from 9.6 percent in July Meanwhile, the U.S. seasonally adjusted unemployment rate was 8.3 percent in July and 8.2 percent in June. Industry Payroll Employment (Establishment Survey Data) Oregon s seasonally adjusted nonfarm payroll employment rose by 1,800 in July. The June figure was revised to show a gain of 900 jobs. July Labor Market Highlights Oregon s seasonally adjusted unemployment rate rose to 8.7 percent in July from 8.5 percent in June and was down from 9.6 percent in July Oregon s seasonally adjusted nonfarm payroll employment added 1,800 in July, following a revised gain of 900 in June. Seasonally adjusted payroll employment grew for five consecutive months through July. This was the first five-month streak since March 2007, which was the last month of a 38-consecutive-month expansion. Over the past five months, a total of 14,600 jobs were added. 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 August 14, 2012 In July, three of the major industries posted seasonally adjusted job gains of more than 1,000: government (+1,700 jobs), professional and business services (+1,300), and construction (+1,200). These gains were largely offset by declines in other services (-1,400), educational and health services (-1,200), and manufacturing (-1,000). Government experienced a rare month of seasonally adjusted job gains in July. In both state government and federal government, the employment change in July was a little above normal, following below-normal patterns of similar magnitude in June. Despite the slight gain in July, federal government was down 1,100 from July Similarly, local government was down 2,100 since July 2011, while state government was flat over the year. Professional and business services produced another strong gain in July, adding 2,300 jobs, which was more than double its normal July increase. Professional and technical services shot up once again, continuing its three-year expansion path. It employed 77,000 in July, which was up 3,700 from July Its component industry, computer systems design and related 350, ,000 Oregon Seasonally Adjusted Employment Trade, transportation, and utilities Government Seasonal Expectations and Over-the-Month Employment Changes June to July ,000 Educational and health services INDUSTRY Normal Seasonal Movement Unadjusted Change Seasonally Adjusted Change 200,000 Professional and business services Total nonfarm payroll employment -22,500-20,700 1,800 Manufacturing Total private 9,200 9, Mining and logging Construction 2,500 3,700 1,200 Manufacturing 2,900 1,900-1,000 Trade, transportation, and utilities 1,400 1, Information Financial activities 400 1, Professional and business services 1,000 2,300 1,300 Educational and health services -2,600-3,800-1,200 Leisure and hospitality 3,300 3, Other services ,500-1,400 Government -31,700-30,000 1, , ,000 50,000 0 Leisure and hospitality Financial activities Construction Other services Information Mining and logging

3 Employment Department News Release Page 3 of 4 August 14, 2012 services, added 600 jobs during the past 12 months. Construction employment rose slightly more than normal in July as it added 3,700 jobs when a seasonal gain of 2,500 is the norm. Throughout the year, construction was fairly close to its seasonal pattern, thus indicating neither rapid expansion nor substantial decline. Since July 2011, construction is up 1,200 jobs or 1.7 percent. Modest increases in residential building permits are a precursor to employment gains in construction. As reported by the U.S. Census Bureau, Oregon construction permit activity through June continued to rise above year-ago levels. The statewide 12-month moving average for authorized new privately owned housing units was 764 in June, up from 620 in June of last year. Despite the recent pickup in permit activity, it is well below the boom years of 2004 through 2007 when monthly permits averaged nearly 2,300. Looking at the employment trends for the component industries over the past 12 months, building equipment contractors has grown the most of any published construction component, having added 3,000 jobs. It employed 23,500 in July. After five years of devastating employment losses, the financial activities industry has regained some ground in employment over the past few months. In July, this major industry added 1,000 jobs when a gain of only 400 is the normal seasonal pattern for July. Some leasing companies reported job gains. Also, mortgage refinance activity has been very strong nationally, and no doubt in Oregon as well, as mortgage interest rates reached the lowest levels in more than 40 years in recent months. This high demand for refinancing has boosted demand for mortgage brokers and agents. On a seasonally adjusted basis, financial activities employment rose to 93,500 in July, an increase of 1,800 from April. In contrast, the industry peaked in early 2007 during the housing bubble, at over 108,000 jobs. Private-sector educational and health services cut 4,100 jobs in July, a bigger drop than the normal seasonal decline of 2,600. Private education dropped 2,400 in July, slightly more than the normal decline for the month. Many of these jobs are in private colleges. Despite the recent employment changes, private education is back on track with its long-term trend of rapid job gains. The industry is up 800 jobs or 2.9 percent since July Over the past 10 years, private education has grown by 9,300 jobs, equaling an annual average rate of 4.0 percent. The business survey is indicating a halt of growth in health care and social assistance employment. Seasonally adjusted employment for this sector, at 202,700 in July, was at the exact same figure as in August The over-the-year estimates for social assistance are the primary reason for the evident slowdown, as its employment has dropped by 1,800 over the past 12 months. Manufacturing added only 1,900 jobs in July when its typical seasonal gain for the months is 2,900. Durable goods slipped by 200, while nondurable goods added 2,100 as it neared the peak of its summer food processing season. Computer and electronic product manufacturing added 300 jobs in July. It employed 37,600, which was well above its post-recession low of 34,700 in May Unemployment (Household Survey Data) The national unemployment rate was 8.3 percent in July and 8.2 percent in June, while Oregon s rate rose from 8.5 percent in June to 8.7 percent in July. The difference between

4 Employment Department News Release Page 4 of 4 August 14, 2012 the Oregon and the U.S. unemployment rates was not statistically significant. The latest figures indicate that Oregon s seasonally adjusted unemployment rate has ticked upward from a recent low of 8.4 percent in May. Prior to that, the rate had generally declined for three years, after reaching a high of 11.6 percent in May and June During the first seven months of this year, Oregon s unemployment rate has been between 8.4 percent and 8.8 percent. Next Press Releases The Oregon Employment Department plans to release the July county and metropolitan area unemployment rates on Tuesday, August 21 st and the statewide unemployment rate and employment survey data for August on Tuesday, September 18 th. In July, 177,801 Oregonians were unemployed. This was 11,350 fewer individuals than in July 2011 when 189,151 Oregonians were unemployed. 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 August 14, 2012 Oregon Current Labor Force and Industry Employment July June July Change From Change From June 2012 July 2011 Labor Force Status Civilian labor force 1,997,436 1,993,046 2,004,403 4,390-6,967 Unemployed 177, , ,151 6,668-11,350 Unemployment rate Unemployment rate, seasonally adjusted Employed 1,819,635 1,821,913 1,815,252-2,278 4,383 Nonfarm Payroll Employment Total nonfarm payroll employment 1,628,200 1,648,900 1,611,600-20,700 16,600 Total private 1,357,300 1,348,000 1,337,500 9,300 19,800 Mining and logging 7,300 7,100 7, Logging 5,700 5,500 5, Construction 73,900 70,200 72,700 3,700 1,200 Construction of buildings 17,900 16,700 17,600 1, Residential building construction 9,300 8,600 9, Nonresidential building construction 8,600 8,100 7, Heavy and civil engineering construction 9,800 9,100 10, Specialty trade contractors 46,200 44,400 44,700 1,800 1,500 Building foundation and exterior contractors 7,200 7,200 8, Building equipment contractors 23,500 23,200 20, ,000 Building finishing contractors 9,600 8,400 9,900 1, Other specialty trade contractors 5,900 5,600 6, Manufacturing 171, , ,500 1,900 1,100 Durable goods 121, , , ,100 Wood product manufacturing 19,400 19,300 19, Sawmills and wood preservation 6,400 6,300 5, Plywood and engineered wood product mfg. 7,100 7,000 7, Other wood product manufacturing 5,900 6,000 6, Primary metal manufacturing 7,400 7,300 7, Fabricated metal product manufacturing 15,700 15,500 15, Machinery manufacturing 11,600 11,600 10, ,000 Computer and electronic product manufacturing 37,600 37,300 36, ,000 Semiconductor and electronic component mfg. 28,000 27,800 27, Electronic instrument manufacturing 5,100 5,100 5, Transportation equipment manufacturing 11,100 11,000 10, Nondurable goods 50,400 48,300 51,400 2,100-1,000 Food manufacturing 25,400 23,500 25,700 1, Fruit and vegetable preserving and specialty 9,000 8,000 9,500 1, Paper manufacturing 4,700 4,600 4, Trade, transportation, and utilities 321, , ,500 1,800 7,600 Wholesale trade 77,100 76,600 74, ,300 Merchant wholesalers, durable goods 31,900 31,600 30, ,400 Merchant wholesalers, nondurable goods 30,800 30,900 30, Electronic markets and agents and brokers 14,400 14,100 13, ,000 Retail trade 190, , ,200 1,100 4,800 Motor vehicle and parts dealers 21,600 21,700 22, Building material and garden supply stores 14,500 14,500 13, Food and beverage stores 39,800 39,500 39, Clothing and clothing accessories stores 16,300 15,900 16, Sporting goods, hobby, book and music stores 10,500 10,600 9, General merchandise stores 37,900 37,700 37, Miscellaneous store retailers 9,400 9,300 9, Nonstore retailers 5,700 5,500 6, CLIFE "CLFIE" Page 1 of 2 David Cooke (503)

6 July June July Change From Change From June 2012 July 2011 Transportation, warehousing, and utilities 54,000 53,800 53, Utilities 4,600 4,600 4, Transportation and warehousing 49,400 49,200 49, Truck transportation 17,900 17,700 17, Couriers and messengers 5,900 6,100 6, Warehousing and storage 6,600 6,600 6, Information 33,400 33,500 32, ,000 Publishing industries, except internet 13,900 13,900 14, Newspaper, book, and directory publishers 4,400 4,500 4, Software publishers 9,500 9,400 9, Telecommunications 6,900 6,900 6, Financial activities 94,200 93,200 92,600 1,000 1,600 Finance and insurance 55,800 55,800 56, Credit intermediation and related activities 27,200 27,200 27, Insurance carriers and related activities 22,800 23,000 23, Real estate and rental and leasing 38,400 37,400 36,400 1,000 2,000 Real estate 32,700 31,800 30, ,300 Professional and business services 192, , ,400 2,300 4,100 Professional and technical services 77,000 76,100 73, ,700 Legal services 11,100 11,000 11, Architectural and engineering services 12,900 12,800 12, Computer systems design and related services 11,100 11,000 10, Management of companies and enterprises 30,300 30,200 30, Administrative and waste services 85,200 83,900 84,700 1, Administrative and support services 80,000 78,800 79,300 1, Employment services 32,500 32,700 32, Business support services 12,800 12,500 12, Services to buildings and dwellings 19,300 18,900 19, Educational and health services 229, , ,100-3,800 1,800 Educational services 28,600 30,700 27,500-2,100 1,100 Health care and social assistance 201, , ,600-1, Ambulatory health care services 73,400 73,100 71, ,500 Hospitals 53,800 53,900 54, Nursing and residential care facilities 45,000 45,200 43, ,200 Social assistance 29,100 30,800 30,900-1,700-1,800 Leisure and hospitality 175, , ,400 3,800 1,500 Arts, entertainment, and recreation 22,300 20,300 23,700 2,000-1,400 Amusement, gambling, and recreation 18,000 16,500 17,600 1, Accommodation and food services 153, , ,700 1,800 2,900 Accommodation 24,100 23,400 23, Food services and drinking places 129, , ,100 1,100 2,400 Full-service restaurants 64,400 63,600 63, ,100 Limited-service eating places 53,100 52,700 52, Other services 57,500 59,000 57,500-1,500 0 Repair and maintenance 15,300 15,600 15, Personal and laundry services 13,000 13,200 13, Membership associations and organizations 29,200 30,200 28,800-1, Religious organizations 15,900 16,200 16, Government 270, , ,100-30,000-3,200 Federal government 29,100 28,100 30,200 1,000-1,100 State government 76,100 82,200 76,100-6,100 0 State education 27,300 33,400 26,200-6,100 1,100 Local government 165, , ,800-24,900-2,100 Indian tribal 9,100 8,800 9, Local education 74,700 99,500 76,200-24,800-1,500 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. CLIFE "CLFIE" Page 2 of 2 David Cooke (503)