Oregon — Oregon’s unemployment rate remained unchanged at 5.2% in February, matching January’s rate and continuing to run above the national average, which stood at 4.4% for the month.
Despite stable unemployment, the state experienced a notable decline in employment. Seasonally adjusted nonfarm payrolls dropped by 5,400 jobs in February, reversing a revised gain of 1,600 jobs in January.
Job losses were concentrated in several major sectors. Transportation, warehousing, and utilities posted the largest decline, shedding 1,600 jobs after a similar-sized gain the previous month. Leisure and hospitality followed with a loss of 1,500 jobs, while professional and business services cut 1,300 positions, continuing a multi-year downward trend.
Professional and business services has been among the hardest-hit sectors over the past year, losing 8,700 jobs, or 3.4%. All three of its major components declined by more than 2% during that period, led by administrative and waste services.
Financial activities provided a rare bright spot, adding 800 jobs in February. However, the sector remains down 1,100 jobs compared to a year ago, reflecting broader long-term contraction.
New data also highlights Oregon’s position relative to other states. In January 2026, Oregon’s 5.2% unemployment rate was tied for the third highest in the nation, alongside New Jersey. Only Nevada, California, and Delaware reported higher rates, while the national average was 4.3%.
Regionally, unemployment rates were also elevated. California posted one of the highest rates in the country at 5.4%, Nevada followed at 5.3%, and Washington was close behind at 5.0%. Idaho was the only neighboring state below the national average, with a 3.7% unemployment rate.
Oregon’s current ranking marks a significant shift from recent years. Between 2016 and 2022, the state’s unemployment rate typically ranked in the middle nationally. However, its ranking has climbed steadily since 2022, accelerating in 2025, when Oregon ranked among the five highest states for most of the year.
Overall, Oregon’s labor market showed mixed signals in early 2026, with steady unemployment masking underlying weakness in several key industries and a comparatively high jobless rate nationwide.
About the Author
Discover more from Right Now Oregon
Subscribe to get the latest posts sent to your email.
