Oregon Gained State Government Workers in the Past Year While Manufacturing Ranks Fell

This story was produced by the Oregon Journalism Project, a nonprofit newsroom covering the state.

Oregon’s lagging economy had one hot spot last fiscal year: State government’s workforce grew 4%.

Whether 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.

Oregon 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.

On 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.

Workers losing jobs in manufacturing or wholesale trade have difficulty getting jobs in specialized fields—leading to higher unemployment across the state, Krumenauer said.

“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.”