Oregon City, once a thriving suburb shaped by forestry, manufacturing, and tourism, now faces a growing employment crisis. Recent data shows that Oregon’s unemployment rate climbed to 4.8 % in May 2025, up from 4.7 % in April and from 4.1 % a year ago, compared with the national rate hovering around 4.2 %.
Among Oregon’s metro areas, including Portland, unemployment remains elevated—with Portland at 4.5 %—but Oregon City is faring worse, with job losses pronounced in key sectors and unemployment claims rising faster than almost anywhere else in the state.
Weekly Unemployment Claims Surge
According to a WalletHub report, unemployment insurance (UI) claims in Oregon rose by 9.2 % compared to the prior week and nearly 34 % year-over-year. Oregon ranks 8th among all states in the pace of rising claims, 12th on a weekly basis, and 4th year-over-year—a clear sign that layoffs are increasing rapidly . Oregon City, as part of the broader Portland metro, is being hit particularly hard.
Sectoral Job Losses: Construction and Manufacturing Take Toll
Local industries are seeing significant losses:
- Construction sector saw the sharpest hit statewide: a loss of 1,700 jobs in May, bringing total construction employment down to about 112,300—roughly 5.6 % below its June 2023 peak.
- Manufacturing also declined, shedding 1,200 jobs, including steep losses in semiconductor and electronic component plants (‑2,900 jobs, -8.7 %).
These sectoral declines are especially troubling for Oregon City, whose economic base includes manufacturing, construction, and tourism—as well as the residual effects of industrial downturns.
Metro Area Reflections: Oregon City’s Vulnerability
The Portland metro area, which encompasses Oregon City, recorded a 4.5 % unemployment rate in May—up from 4.4 % in April and 3.9 % a year earlier . Nonfarm payrolls dropped by 1,500 jobs in May, with ongoing losses in construction, retail, and manufacturing offsetting gains in leisure and hospitality (+3,500 jobs). Given Oregon City’s economic ties to these sectors, the metro’s rise in joblessness is mirrored in the city’s own struggles.
A City with Historical Strengths, Now Under Strain
Once driven largely by the forestry and paper mills along the Willamette River—such as the West Linn mill—Oregon City has diversified into tourism, administration, and retail. As of 2023, nearly 19,300 residents were employed, chiefly in Health Care & Social Assistance, Construction, and Retail Trade. However, as statewide data suggests, construction—the city’s third-largest industry—has been severely affected by layoffs, compounding local unemployment concerns.
Understanding the Larger Economic Picture
Despite the uptick in joblessness, Oregon’s broader employment landscape remains tight by historical standards. As of spring 2024, Oregon averaged roughly three unemployed workers per two job openings. Furthermore, while statewide job vacancies dropped by 30 % from 2022’s record high, hiring remains stronger than before the pandemic. Thus, while layoff claims are rising, certain industries still face worker shortages—suggesting that job losses may be concentrated regionally or sectorally.
Impact on Households and Communities
Oregon City’s median household income stood at $94,648 in 2023, with homeownership at 65.8 %. This suggests a relatively stable middle-class base. However, the unemployment surge threatens financial stability. Residents working in construction, manufacturing, or retail may face income disruptions, rent or mortgage challenges, and stress on local services, particularly if job losses persist into the summer.
Voices from the Ground
While there’s limited qualitative reporting specifically on Oregon City, statewide experts offer insights:
- Oregon Employment Department analysts note that construction and manufacturing have struggled, whereas leisure and hospitality continue to expand—creating a volatile and uneven job landscape.
- WalletHub economists alert to the rapid increase in UI claims and rising unemployment trends across Oregon .
These observations echo in Oregon City, where community members dependent on affected industries are likely bearing the brunt.
Outlook: Stabilization or Continued Strain?
Looking ahead, Oregon’s labor outlook appears mixed. The slowdown in statewide job openings and rising claims suggest increased caution among employers. However, shortages persist in sectors like healthcare and logistics. For Oregon City:
- Short term: Continued job claims and unemployment trending around 5 % seem likely.
- Medium term: If construction and manufacturing remain weak, a sluggish recovery may follow.
- Support needed: Targeted economic stimulus—job training, small-business investment, and sector-based hiring incentives—can support at-risk communities.
Recommendations for Local Response
- Workforce Retraining
Offer reskilling programs in growing sectors like health care, logistics, and hospitality. - Small Business Grants
Encourage entrepreneurship and local hiring with accessible funding. - Public-Private Collaboration
Enable partnerships that prioritize job creation tied to local infrastructure and tourism. - Enhanced UI Awareness
Ensure affected workers know how to access unemployment benefits and support services.
Conclusion
Oregon City’s jobless rate, rising in tandem with the state’s troubling trends, highlights vulnerabilities in key sectors—particularly construction and manufacturing. While parts of the economy remain resilient, the city must address immediate job loss, support affected families, and build toward a more diversified and balanced recovery.
By aligning retraining opportunities, small-business support, and infrastructure investment, Oregon City can transition from a period of elevated unemployment to renewed economic resilience.