SALEM, Ore. — Oregon’s unemployment rate ticked up slightly to 5.2% in January, compared with a revised 5.3% in December, according to the Oregon Employment Department. Nationally, the unemployment rate was lower, coming in at 4.3% in January and 4.4% in December.
Despite the modest change in the unemployment rate, Oregon’s labor market showed continued growth. Seasonally adjusted nonfarm payroll employment increased by 2,000 jobs in January, following a revised gain of 100 jobs in December.
Job gains were led by the leisure and hospitality sector, which added 1,800 positions. Health care and social assistance followed with 1,500 new jobs, while construction employment rose by 1,000 jobs. However, these gains were partially offset by losses in manufacturing, which shed 1,500 jobs, and professional and business services, which declined by 1,300 jobs.
Leisure and hospitality outperformed typical seasonal trends in January, employing 209,800 workers—an increase of 1,800 jobs, or 0.9%, compared with January 2025. Still, employment in the sector remains only slightly above levels seen over the past several years.
Health care and social assistance continued to be a major driver of job growth. The sector added 4,100 jobs over the three months ending in January and posted the fastest annual growth among major industries, gaining 9,800 jobs, or 3.2%, over the past year.
Construction employment rebounded in January with a gain of 1,000 jobs after losing 2,400 positions in December. However, the industry has generally trended downward over the past two years, falling from a peak of about 118,000 jobs in 2023 to 111,600 jobs in January 2026.
Manufacturing employment declined by 1,500 jobs in January, reversing a gain of 1,300 jobs in December. Since August, the sector has remained relatively stable at around 178,000 jobs, following a sharp drop from its recent high of 195,000 jobs in November 2022.
Professional and business services also continued to struggle. The January decline left the sector down 7,600 jobs, or 2.9%, compared with a year ago, and 17,000 jobs below its 2023 peak of 268,100.
The Oregon Employment Department will release detailed January data for counties and metropolitan areas on April 7. Statewide employment and unemployment figures for February are scheduled for release on April 15.
The department’s Workforce and Economic Research Division compiles and analyzes labor market data to provide insights that support economic decision-making across the state.
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