Oregon – Oregon’s economy is undergoing important transitions, with growing disparities between public and private sector job growth, persistent challenges in affordability, and rising concern over business retention. These issues collectively point to a state at a crossroads—struggling to maintain competitiveness while delivering livability for working families.
Between January 2024 and January 2025, Oregon added 22,000 nonfarm payroll jobs, representing a 1.1% growth rate and placing the state in the middle tier nationally. However, a closer look reveals that much of this growth is concentrated in government and health-related sectors. Government jobs, in particular, saw notable gains, while private sector hiring showed signs of slowing. (QualityInfo.org)
Online job ads—a key indicator of labor market demand—fell throughout 2024, trending toward pre-pandemic levels. The slowdown suggests a cooling in private-sector labor demand, especially in industries like manufacturing, construction, and professional services. (QualityInfo.org)
The state’s private employers reported an average of 57,800 job vacancies in 2024, down 21% from 2023. Notably, fewer employers were struggling to fill open positions, indicating less urgency in hiring. The combination of reduced vacancies and lower job ad volumes raises concerns about stagnation in private sector dynamism.
The business climate in Oregon is drawing increased scrutiny from economic development officials, especially as other states actively target Oregon firms for relocation.
According to the Oregon Business Recruitment Report, 24% of surveyed businesses reported being contacted by recruitment efforts from outside Oregon. These recruitment attempts came from 36 states, most prominently Texas, Washington, and California. Roughly 30% of businesses that were contacted reported that they were at least “somewhat likely” to consider relocating, underscoring the seriousness of the threat. (Oregon.gov)
Businesses cited several reasons for being open to relocation, including:
- High costs of doing business, including taxes, energy, and compliance burdens;
- Regulatory complexity and a perceived lack of responsiveness from state agencies;
- Lack of available industrial land for expansion;
- Concerns over livability, including housing affordability and workforce availability.
While Oregon continues to promote itself as a hub for sustainability and innovation, the report warns that neighboring and Sun Belt states are aggressively marketing their lower costs and pro-business climates.
The report notes:
“Oregon has many strengths, but if we are not vigilant and proactive, we risk losing the competitive edge that has defined our state’s economic story for decades.”
Economic developers are calling for more streamlined permitting processes, competitive incentives, and long-term planning to preserve Oregon’s ability to attract and retain employers. Without these efforts, they warn, the state could see more companies leave—taking jobs and investment with them.
Compounding the challenges in employment and business retention is a steep affordability crisis. Oregon’s median home sale price reached $502,200 as of late 2024, a 2.4% increase over the prior year. (Bankrate) Home prices have surged nearly 700% over the last four decades, putting pressure on working families and young professionals alike.
Amid growing concern over Oregon’s economic climate, affordability, and business competitiveness, House Republicans have called on Speaker Julie Fahey to prioritize legislative action that addresses the cost of living and economic stagnation. In a recent letter, they emphasized that “businesses are fleeing the state for lower-tax, lower-cost states” and that Oregon’s housing crisis, paired with regulatory burdens, is undermining both employers and working families. (Oregon Legislature)
Public sector employment remains strong, but private industry—long the engine of innovation and investment—shows signs of hesitancy. Businesses are being courted by other states offering a friendlier climate, and many are listening. Policymakers face a dual challenge posed by affordability concerns and the risk of a gradual erosion of the state’s private sector base as businesses look to relocate in other states.
About the Author
