Hey, at least unemployment isn't getting worse here

Summary

The unemployment rate in Oregon stayed at 12.2 percent last month, unchanged from May, according to a report released Monday morning. In June, 241,156 Oregonians were unemployed.

Story Published: Jul 13, 2009 at 11:00 AM PDT

Story Updated: Jul 13, 2009 at 6:23 PM PDT

Hey, at least unemployment isn't getting worse here

SALEM, Ore. (AP) — Oregon's unemployment rate hovered at 12.2 percent in June — essentially unchanged from the previous month but still a modern high and more than double the rate a year ago.

The latest figure also was well above the U.S. rate of 9.5 percent as Oregon's recession-bound economy shed another 7,200 jobs last month.

"That indicates a continuing decline in economic activity in Oregon," said David Cooke, an Oregon Employment Department economist. "It is still a very tough time for many workers in this state."

In all, 241,000 Oregonians were on the unemployment rolls in June, compared with 114,000 a year ago.

In its monthly jobs report, the state employment agency said industries such as manufacturing, trade and business services continued to mirror national trends of job declines.

One bright spot was construction, which posted a gain of 3,600 jobs in June, when a seasonal gain of 2,000 jobs had been expected.

Cooke said the federal stimulus package spurred some of that increase as highway and bridge projects began around Oregon.

Gov. Ted Kulongoski said Monday he believes construction-related job increases would continue as federal and state stimulus efforts come on line.

But the governor also said the latest jobs numbers reflect continuing tough times in Oregon, where unemployment has been running second-highest in the nation behind Michigan.

"I know Oregonians across the state are struggling and worried about how to provide for their families," Kulongoski said. "This is not an easy time for many families."

The state employment agency originally estimated May's jobless rate at 12.4 percent but said Monday that it had been seasonally adjusted to 12.2 percent.

The following is a press release from the Oregon Employment Department:

Oregon’s Employment Situation: June 2009

Oregon’s seasonally adjusted unemployment rate was 12.2 percent in June, the same as the revised May figure of 12.2 percent. Despite remaining unchanged between May and June, Oregon’s unemployment rate was up substantially from June 2008 when the rate was 5.9 percent.

The U.S. seasonally adjusted unemployment rate rose to 9.5 percent in June, from 9.4 percent in May.

In June, Oregon’s seasonally adjusted nonfarm payroll employment declined by 7,200 jobs, following a drop of 1,600 (as revised) in May. This marked the 11th consecutive month of decline for this measure of employment.

Industry Payroll Employment (Establishment Survey Data)

In June, most industries did not follow their normal seasonal pattern of change. Industries such as manufacturing, trade, and business services continued to mirror national trends of decline. In contrast, construction added significantly more jobs than seasonally expected.

Construction posted a gain of 3,600 jobs in June, when a gain of only 2,000 is the normal seasonal movement. This follows a flat May performance after several months of steep seasonally adjusted job losses. Seasonally adjusted employment in construction was 80,500 in June, still well below its year-ago level of 95,400.

Each of the three major components of construction added jobs in June. Heavy and civil engineering construction added 1,600, construction of buildings added 500, and specialty trade contractors added 1,500.

Manufacturing added 1,000 jobs during a month where a gain of 2,900 is the normal seasonal movement. This driver of the state’s economy has been shedding jobs for nearly three years. Losses had been particularly severe during the fourth quarter of 2008 and the first quarter of this year.

Durable goods manufacturing again accounted for all of the manufacturing declines. Having cut 400 jobs in June it is now down 27,500 from its year-ago figure. At 117,400 jobs, durable goods is now down 39,500 jobs or 25 percent from its recent peak of 156,900 in August 2006. Nondurable goods has been holding up much better, as it added 1,400 jobs in June and is only down 500 since June 2008.

Computer and electronic products manufacturing cut 400 jobs in June, the largest decline reported within the durable goods sector. This industry employed 34,600 in June, 7,700 jobs below its last peak in August 2006. Similarly, machinery cut 300 in June, to reach 8,800 jobs, down sharply from 12,000 a year prior. Food manufacturing added 1,200 jobs, exceeding its year-ago level by 2,700.

Professional and business services added 600 jobs in June, when a gain of 1,900 is the normal seasonal change. The industry had been declining rapidly since the summer of 2008. It is down 16,400 jobs, or 8.3 percent, since June 2008.

Employment services added 900 jobs, after a revised gain of 1,000 in May. This industry is 10,400 jobs, or 28 percent, below its June 2008 level.

Professional and technical services, which makes up about 40 percent of the larger category called “professional and business services”, lost 700 jobs in June. After showing some resilience during the past two years, this industry has weakened somewhat over the past four months, shedding 2,900 jobs on a seasonally adjusted basis over that period.

Financial activities continued on its downward slide of the past two years, slipping 600 jobs when a gain of 200 is the normal seasonal expectation. The losses were confined to finance and insurance (-600 jobs). Real estate, rental, and leasing employment was unchanged from May. The financial activities sector has cut 7,500 jobs, or 7.3 percent of its workforce since June 2008.

Leisure and hospitality added 3,500 jobs in June, just above normal seasonal expectations. Following a strong May, the industry has been building steam since February 2009. Leisure and hospitality is down 6,500 jobs, or 3.6 percent, from June 2008.

Job gains were concentrated in accommodation and food services, which added 3,100 June. Full-service restaurants added 1,300 jobs, while employment in limited-service eating places was basically unchanged from May.

Trade, transportation, and utilities shed 500 jobs at a time of year when a gain of 1,800 would be normal. Wholesale trade reported a 1,100-job loss due to weakness among merchant wholesalers of nondurable goods. Retail trade added 800 jobs, with modest job gains reported in most of its component industries. Transportation, warehousing and utilities backtracked from May’s gain, losing 200 jobs in June. All industries in the larger sector of trade, transportation, and utilities are down substantially over the past year.

Unemployment (Household Survey Data)

In June, Oregon’s seasonally adjusted unemployment rate was 12.2 percent, the same figure as the revised May unemployment rate.

In June, 241,156 Oregonians were unemployed. In June 2008, 113,722 Oregonians were unemployed.

The Oregon Employment Department plans to release the June county and metropolitan area unemployment rates on Monday, July 20th and the statewide unemployment rate and employment survey data for July on Monday, August 17th.

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