Oregon Job Growth Slows in July

PORTLAND-Oregon’s unemployment rate fell one-tenth of one percent to 6.8% in July as job growth fell off steeply. Oregon’s seasonally adjusted payroll employment grew by 400 jobs in July. Through the first half of the year, the average monthly growth was 4,900 jobs. In explaining the slowdown, the Oregon Employment Department speculated that the warmer-than-normal weather this spring caused some summer hiring to start early, causing the above-average job growth experienced over the previous fourth months.Over the past year, payroll employment has grown by 39,100, or 2.5%. During that time, most major industries added jobs, including professional and business services (+8,700), government (+8,100), manufacturing (+6,800), leisure and hospitality (+6,200) and construction (+4,200). The only major industry to shed jobs during that time was information (-700).In July, the leisure and hospitality industry was at it again, hiring substantially more workers than normal for July, adding 4,300 at a time of year when a gain of only 1,100 would have been normal. Manufacturing and construction, meanwhile, each posted employment changes below their typical trends. Manufacturing added 2,100 jobs in July when a gain of 3,900 would have been more typical at this time of year. Construction grew by 2,300 jobs, about 900 shy of normal seasonal gains, but remains 4,200 jobs (5.2%) ahead of its year-ago figure. Trade, transportation and utilities was the third of the major industries to post a below-normal jobs figure in July. This industry cut 800 jobs at a time of year when a gain of 1,800 would have been the norm, according to OED. Wholesale trade activity added 1,000 jobs for the month, but was offset by retail trade, which lost 900 jobs in July. The largest losses included 400 jobs in clothing and accessory stores, and 300 in food and beverage stores. Meanwhile, transportation and warehousing dropped by 1,000 jobs, largely because of private sector school bus operators laying off staff during the routine summer school break, according to OED.Professional and business services expanded by 1,000 jobs during the month, which was 800 above the normal seasonal expectation. The sector has been one of the strongest performers of the major industries, posting an over-the-year gain of 8,700 jobs, or 5.1%, since July 2003. Propelling the industry are the many businesses that have been increasing their spending on capital goods and services as their profits have improved markedly over the past year, according to OED.At the national level, the U.S. unemployment rate finished July at 5.5%; it has been between 5.5% and 5.7% for the past eight months.