Oregon’s workforce saw a 4% increase in state government employment over the past fiscal year, even as manufacturing employment dropped by 5%, according to recent data from the Oregon Employment Department. The decline in manufacturing continues a prolonged downturn in the sector, affecting a broad range of industries. Gail Krumenauer, an economist with the department, highlighted losses across construction, which shed 900 positions, retail businesses that lost 3,900 jobs, and the frozen produce processing industry—known for handling potatoes, berries, and green beans—that cut 1,000 roles. n nIn contrast, private healthcare and social assistance sectors added thousands of new positions. However, Krumenauer cautioned that growth concentrated in niche areas could undermine overall labor market resilience. Workers displaced from manufacturing or wholesale trade often struggle to transition into these specialized roles, contributing to rising statewide unemployment. n nWhile the U.S. has not yet experienced prolonged nationwide job declines, Oregon has recorded several consecutive months of employment losses, raising concerns about the stability of its economic recovery. n— news from The New Era | Sweet Home, OR
— News Original —nEconomic hotspot: Oregon state hiringnOregon gained state government workers in the past year while manufacturing ranks fell n nBy Khushboo Rathore n nOregon Journalism Project n nOregon’s lagging economy had one hot spot last fiscal year: State government’s workforce grew 4%. n nWhether Oregonians find that good or bad, almost all will agree the news about the state’s manufacturing sector is dreadful: Jobs fell by 5%, continuing a yearslong slump, according to recent state data. n nOregon Employment Department economist Gail Krumenauer has detailed the range of manufacturing sectors that suffered job losses in the year ended July 30, 2025, everything from construction (down 900) to retail businesses (down 3,900) to Oregon’s large, well-known frozen fruits and vegetables processing—potatos, berries, green beans—down 1,000 jobs. n nOn the flip side, Krumenauer said, thousands of jobs have been added in private health care and social assistance. But when growth comes only in such specialized sectors, it creates a “weaker position for the entire labor market,” she added. n nWorkers losing jobs in manufacturing or wholesale trade have difficulty getting jobs in specialized fields—leading to higher unemployment across the state, Krumenauer said. n n“We’re not seeing months and months of sustained job losses happening in the U.S. yet,” she added, “but it is a growing concern to see a few months of job losses in a row happen in Oregon.”