C.O. economy gets better, but many jobs still haven’t returned
(Update: Adding video, comments from economist)
BEND, Ore. (KTVZ) -- Central Oregon's job picture improved markedly in June from a dismal spring, much like the rest of the state and nation, as COVID-19 reopenings grew in momentum -- but many of the lost jobs have yet to return, a regional economist said Tuesday.
Phase 2 of COVID-19 reopening led to a notable increase in employment across Central Oregon and a significant drop in the unemployment rates, state Employment Department Regional Economist Damon Runberg said in his release of the monthly data for June.
"Despite the improvement, the employment situation remains far below levels from before the crisis," Runberg wrote. The region has recovered roughly 30 percent of all jobs lost in March and April.
"Our unemployment rate dropped four points in a single month, which once again, we'e never done that before, either," Runberg told NewsChannel 21.
"Despite the fact we did see that much improvement, we still have an unemployment rate of 12% in Deschutes County, which is really, really high. There are still a lot of unemployed folks out there today," he added.
Recent Census Bureau surveys of Oregon households about their employment situation finds an increasing share who say their job losses have been permanent, which leads economists to believe we may be facing a longer-term recession, Runberg said.
Here's Runberg's report:
Crook County: The seasonally adjusted unemployment rate fell to 13.5 percent in June, down from 17.1 percent in May. The unemployment rate remains up significantly from this time last year, when it was 5.3 percent.
Crook County posted its first meaningful job gains in June since the COVID crisis began. Total nonfarm employment rose by 260 jobs for Crook County businesses. Monthly job gains exceeded seasonal expectations by roughly 130 jobs. Most of the improvement in June was due to a strong rebound in leisure and hospitality, which added 90 jobs.
Still, employment levels remain down 12 percent from this time last year (-760 jobs). Despite improvement in June, Crook County businesses have only recovered around 14 percent of all the jobs that have been lost in the crisis.
Employment in most major industry sectors remains down significantly from last June. Construction employment is down nearly 40 percent, leisure and hospitality down around 29 percent, retail trade down over 15 percent, and manufacturing down by around 11 percent.
Deschutes County (Bend-Redmond MSA): The seasonally adjusted unemployment rate dropped to 12 percent in June, down from 16.3 percent in May. The monthly drop in June was the largest monthly drop in the series history. But the rate remains significantly higher than this time last year, when it was 3.9 percent.
Deschutes County added 3,510 jobs in June, a 4.6 percent growth from May. Monthly job gains were far larger than typically expected, based on seasonal patterns, with roughly 70 percent of the monthly jobs attributed to a recovering economy.
Total non-farm employment remains down significantly from this time last year (-9,530 jobs). However, the employment situation is improving from the peak of the COVID crisis. As of June, Deschutes County added back around 30 percent of all jobs lost since March.
Despite moving into Phase 2 of reopening, many of the hard-hit industries continue to see their employment situation down significantly from this time last year.
Employment in accommodation and food services remains down by over 35 percent, compared to this time last year. Local education is down 17 percent, professional and business services is down 12 percent, and manufacturing is down by over 9 percent.
The only major industry sector to see growth over the past year was construction, which was up by around 160 jobs from last June.
Jefferson County: The seasonally adjusted unemployment rate was 13.1 percent in June, down from 17 percent in May. The rate remains up significantly from this time last year, when it was 5 percent.
Jefferson County added 250 jobs in June, and roughly half of those jobs can be attributed to economic recovery. The largest monthly gains were in manufacturing (+90 jobs) and leisure and hospitality (+60 jobs).
Jefferson County posted the first improvement to the employment situation since the onset of the COVID crisis; however employment, remains down over 16 percent from this time last year. The county recovered around 13 percent of all jobs lost during the crisis in June.
Job losses over the past year remain concentrated in leisure and hospitality (-36%); construction (-23%); professional and business services (-22%); and manufacturing (-18%).
Next Press Releases
The Oregon Employment Department plans to release the July county and metropolitan area unemployment rates on Tuesday, August 25th and the statewide unemployment rate and employment survey data for June on Tuesday, August 18th.
