Oregon — The number of federal government jobs in Oregon averaged 29,000 during the first half of 2025, accounting for roughly 1.5% of the state’s covered employment, according to a report by Anna Johnson and Gail Krumenauer from the Oregon Employment Department published October 15, 2025. While this marks a slight decrease from 2024, federal jobs remain a crucial source of high-paying employment, especially in rural regions.
Federal employment has hovered around 28,000 to 29,600 jobs since the 2010 Census, maintaining a steady share of Oregon’s overall workforce. The largest federal employers in the state include the U.S. Postal Service (7,000 jobs), the Department of Veterans Affairs (6,400), and the U.S. Department of Agriculture (4,300, primarily through the U.S. Forest Service). The Department of Defense and the Department of the Interior also employ thousands across Oregon, while the Bonneville Power Administration represents nearly all Department of Energy positions.
Rural counties such as Sherman, Grant, Harney, and Lake rely heavily on federal employment, where up to 15% of all jobs are federal. These positions also tend to offer significantly higher wages. In 2024, the average federal employee in Oregon earned $98,500, 38% higher than the statewide average wage of $71,300. In Wasco County, federal workers earned double the local average wage.
However, job reductions have emerged in 2025. From August 2024 to August 2025, Oregon lost approximately 1,100 federal government jobs, according to the U.S. Bureau of Labor Statistics. These losses preceded the October 2025 federal government shutdown, which could deepen employment impacts. Analysts note that unemployment claims filed under the Unemployment Compensation for Federal Employees (UCFE) program will likely offer early signs of the broader effects of these workforce reductions.
Despite modest declines, federal government employment continues to provide a vital economic anchor across Oregon’s communities, especially in regions where other job opportunities remain limited.
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