Oregon — Oregon’s job market is gradually loosening as layoffs increase slightly and worker confidence appears to moderate, according to a new analysis from the Oregon Employment Department.
The report highlights a continued decline in the Labor Leverage Ratio (LLR), a metric used by economists to gauge the balance of power between workers and employers. The ratio compares voluntary quits with layoffs and firings, offering insight into how confident workers feel about leaving jobs and how aggressively businesses are cutting staff.
When the ratio is high, workers are quitting jobs at a faster rate than they are being laid off, suggesting strong worker confidence and high demand for labor. A ratio above 1.0 is typical in most economic conditions because voluntary departures generally exceed layoffs.
However, Oregon’s LLR has steadily declined since peaking in 2022, mirroring a broader national trend. Over the past year, layoffs have ticked up slightly while the number of workers voluntarily leaving jobs has remained relatively stable.
According to the state analysis, the shift indicates a slow easing in demand for workers rather than a sharp downturn in the labor market.
“The resulting picture is more of a continued slow decline in the demand for workers from the previous few years,” the report noted.
Data used in the analysis comes from the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS), which tracks hiring, separations, and job openings nationwide and across individual states.
In December 2025, the most recent month of preliminary data available, Oregon’s Labor Leverage Ratio stood at 2.21, ranking 10th among U.S. states.
Several states recorded higher ratios, including South Dakota (3.60), Missouri (2.77), and Ohio (2.75). Meanwhile, Idaho (1.21), California (1.20), and New York (1.17) had the lowest ratios.
While Oregon’s ratio remains above the national average, economists say its gradual decline suggests the state’s labor market is moving toward a more balanced environment after several years of unusually strong worker leverage during the post-pandemic recovery.
The ratio also varies widely by industry, reflecting differences in hiring demand and workforce mobility across sectors.
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