Oregon economic forecast shows challenges as Governor Kotek pushes FastTrack plan
SALEM, Ore. (KTVZ) — Oregon’s latest economic forecast paints a mixed picture of the state’s outlook, showing rising business distress and a stubbornly high unemployment rate even as state leaders look for ways to spark growth.
Economists with the Department of Administrative Services Office of Economic Analysis presented the first-quarter forecast Wednesday, warning that labor conditions are not yet improving. Oregon’s unemployment rate remains above the national average, with about 40% of the state’s jobless increase coming from Washington and Multnomah counties. Analysts called it unusual to see payroll declines outside of a national recession.
The report also noted that Oregon businesses are showing slightly higher signs of financial strain, including more bankruptcy filings than the national average. Meanwhile, inflation continues to run above the Federal Reserve’s 2% target, prolonging cost pressures for families and employers alike.
State officials said the new data will help shape Oregon’s budget decisions and economic strategy for the months ahead.
Responding to the warning signs, Governor Tina Kotek testified before lawmakers in support of House Bill 4084 — a major piece of her economic development agenda called the FastTrack program. The proposal would speed up permitting for large projects, modernize Oregon’s enterprise zones and invest $40 million in the state’s Industrial Site Loan Fund to prepare more shovel-ready sites for development.
“While President Trump’s tariff-taxes make life more expensive for Americans and sow uncertainty in the economy, I refuse to let Oregon fall behind,” Kotek said during Wednesday’s hearing. “The time to act is now. Oregon is open for business.”
Kotek’s proposal builds on her “Prosperity Roadmap,” a plan developed with business and community leaders to grow local industries, create jobs and strengthen Oregon’s competitiveness. It also seeks to make enterprise zone incentives more accessible to rural and small communities by lowering job creation thresholds and extending tax benefits beyond five years.
Supporters, including Lam Research’s global government affairs director Vartan Djihanian, say House Bill 4084 is a critical step toward signaling that Oregon is serious about job creation and investment. Lawmakers are expected to continue discussions on the proposal throughout the current legislative session.
