SALEM, Ore. (AP) - Oregon's seasonally adjusted unemployment rate hit a 23-year high of 9 percent in December, up from 8.0 percent in November.

December's rate is the highest since April of 1985 when it reached 9.1 percent.

In December, Oregon's seasonally adjusted nonfarm payroll employment declined by 9,700 jobs, following a drop of 8,400 in November. It was the fifth consecutive monthly loss of more than 4,000 jobs.

The only substantial gain for the month was in education and health services.

Construction cut 4,500 jobs, nearly double the 2,400 expected. Governments cut more than 4,500 jobs in December when the norm is about 2,900. Most government cuts were at the local level.

This is a press release courtesy of the State of Oregon:

Oregon’s seasonally adjusted unemployment rate rose to 9.0 percent in December from 8.0 percent (as revised) in November. The state’s unemployment rate has risen rapidly and substantially over the past six months after remaining stable throughout the first half of 2008 at near

5.5 percent. The U.S. seasonally adjusted unemployment rate rose to 7.2 percent in December, from 6.8 percent in November.

In December, Oregon’s seasonally adjusted nonfarm payroll employment declined by 9,700 jobs, following a drop of 8,400 (as revised) in November.

Industry Payroll Employment (Establishment Survey Data)

In December, seasonally adjusted payroll employment dropped by 9,700 jobs. This was the fifth consecutive monthly loss of more than 4,000 jobs. Job losses have averaged nearly 9,000 per month over this five-month period. Payroll employment totaled 1,695,200 in December, which was a drop of 46,700 jobs or 2.7 percent since the highest such employment level of 1,741,900 was reached in February.

In December, job declines continued in most of the major industries, as the following industries each shed approximately 2,000 jobs: leisure and hospitality (-2,700 jobs), construction (-2,100), manufacturing ( 1,900), trade, transportation and utilities (-1,900), and government (-1,600). The only major industry posting a substantial job gain in December was educational and health services, which added 1,200 jobs on a seasonally adjusted basis.

Leisure and hospitality employment continued to drop rapidly in December, cutting 3,200 jobs at a time of year when only a 500-job loss is the normal seasonal movement. This industry is experiencing a sharper decline than it did during the economic downturn of 2001. Over the past 12 months, employment is down 7,700 jobs or 4.4 percent. During the 2001 recession, employment dropped by less than 2,000 from peak to trough.

Since December 2007, job losses were widespread, with each of the component industries

Down roughly four to five percent: arts, entertainment, and recreation ( 1,200 jobs), accommodation ( 1,000), full-service restaurants (-3,100), and limited-service eating places ( 2,300).

Construction continued its rapid pullback, cutting 4,500 jobs when a loss of 2,400 is the normal seasonal movement. Every published industry within construction cut jobs in December including residential building construction (-500 jobs), heavy and civil engineering construction (-1,600), building foundation and exterior contractors (-500), building equipment contractors (-400) and building finishing contractors (-700).

Manufacturing cut 3,600 jobs when a loss of 1,700 is the normal seasonal movement. Durable goods shed 2,700 jobs in December, reaching a level of 131,400. This was the lowest monthly employment count in durable goods manufacturing since comparable records began in 1990.

The previous low was in January 1992, when 131,600 were employed. Wood product manufacturing continues to suffer from the decline in home building at the national level. It cut 800 jobs in December and is down 4,000 since December 2007. Machinery manufacturing cut 800 jobs and is down 2,000 in the past 12 months.

Transportation equipment manufacturing continues to be hammered by the economic downturn. It shed 700 jobs in December and is down 3,800 jobs or 22 percent in the past 12 months.

Demand for motor coaches has plunged over the past year, contributing substantially to job cuts in the industry.

Nondurable goods manufacturing cut 900 jobs in December, which was 300 better than the typical pattern. Food manufacturing has held up reasonably well and has added 1,000 jobs over the past 12 months.

Trade, transportation, and utilities normally adds 700 jobs in December as retailers bring staffing levels to the zenith of the year. This December, they cut 1,200 jobs, continuing a pattern of weak hiring dating back to February. Retail trade shed 10,800 jobs or 5.1 percent since December 2007.

Motor vehicle and parts dealers cut 1,200 jobs in December as the industry continued to experience one of their lowest levels of sales activity in memory. Most other retail sectors posted relatively flat employment trends as many stores got by during the holiday season without hiring the normal number of temporary staff.

Government cut more jobs than normal in December, shedding 4,500 jobs when a 2,900-job loss is the normal seasonal movement. Local government saw the biggest decline, shrinking by 2,400 jobs.

Educational and health services continues to expand, undaunted by the general economic declines experienced in nearly every other major industry. This private-sector industry added 800 jobs when a loss of 400 is the normal pattern due to the time of year. Social assistance added 800 jobs for the month, leading the way with the largest gain of all published categories within the broader industry.

Unemployment (Household Survey Data)

In December, Oregon’s seasonally adjusted unemployment rate rose to 9.0 percent from 8.0 percent in November. The December figure was Oregon’s highest since the rate was 9.1 percent in April 1985. In December 2007, Oregon’s unemployment rate was 5.4 percent. Thus, the rate has risen by 3.6 percentage points over the past 12 months.

In December 174,819 Oregonians were unemployed, an increase of 69,966 from the December 2007 level of 104,853. December marked the largest number of unemployed since January 1983 when 176,815 Oregonians were unemployed.

The Oregon Employment Department will release statewide unemployment rate and employment survey data for January 2009 at 11 a.m. on Monday, February 23, 2009. At that time, the Department will also release revised unemployment and employment data for all months of 2008 as well as prior months.