Introduction The job market in Oregon has shown some troubling signs, with unemployment rates seeing an upward trend. Recent reports highlight counties across the state with some of the highest unemployment rates, reflecting the broader challenges in the labor market. The statistics are a reminder that while some areas are thriving, others are facing difficulties in providing jobs to their populations. In this article, we dive into the counties in Oregon experiencing the highest unemployment, using the latest data from January 2025 to provide insights into the state’s employment situation.
Overview of the Employment Situation According to the latest Bureau of Labor Statistics (BLS) figures, February 2025 saw a rise in the unemployment rate to 4.1%. While job growth continued, it fell short of expectations, reflecting signs of a cooling labor market. Businesses are hesitating to hire due to uncertain economic policies, changes in trade agreements, and workforce cuts in the federal government.
The uncertainty surrounding federal policies, including tariff concerns and workforce reductions, has contributed to a slow-down in the job market. For example, the federal government reduced its workforce by 10,000 jobs in February, with 62,530 federal workers laid off during the first two months of 2025. Additionally, retail employment has also taken a hit with a loss of 6,000 jobs.
High Unemployment in Oregon’s Counties The unemployment rate is not uniform across Oregon. While some counties remain relatively stable, others are struggling with much higher unemployment levels. Below is a detailed look at some of the counties in Oregon with the highest unemployment rates.
Counties with the Highest Unemployment Rates in January 2025
- Sherman County
- Unemployment Rate: 4.1%
- Labor Force: 942 people (39 unemployed)
- One-month Change: +0.3 percentage points
- One-year Change: -1.1 percentage points
Sherman County, with its small population, has seen a slight increase in its unemployment rate in January 2025. Despite the uptick, the rate has improved compared to last year, indicating some progress in the county’s economy.
- Benton County
- Unemployment Rate: 4.3%
- Labor Force: 49,485 people (2,113 unemployed)
- One-month Change: +0.7 percentage points
- One-year Change: +0.7 percentage points
Benton County has experienced a rise in its unemployment rate, which has remained relatively stable over the past year. With a significant population, Benton County represents a more urbanized area that faces challenges in job creation, possibly due to shifts in the local economy.
- Hood River County
- Unemployment Rate: 4.5%
- Labor Force: 13,369 people (600 unemployed)
- One-month Change: +1.2 percentage points
- One-year Change: +0.5 percentage points
Hood River County’s unemployment rate saw a substantial increase, suggesting possible economic instability in the region. This could be attributed to seasonal changes or other local economic conditions.
- Washington County
- Unemployment Rate: 4.8%
- Labor Force: 340,000 people (16,343 unemployed)
- One-month Change: +0.9 percentage points
- One-year Change: +0.7 percentage points
Washington County, one of Oregon’s most populous counties, has also seen an increase in its unemployment rate. The increase in jobless rates could reflect broader challenges in the state’s economy, such as shifts in the tech industry and other key sectors.
- Clackamas County (tie)
- Unemployment Rate: 5%
- Labor Force: 226,933 people (11,297 unemployed)
- One-month Change: +1.0 percentage points
- One-year Change: +0.8 percentage points
Clackamas County has also witnessed a rise in unemployment, echoing the state’s overall trends. The growth in unemployment here could be linked to changes in the retail and manufacturing sectors, which are vital to the county’s economy.
- Polk County (tie)
- Unemployment Rate: 5%
- Labor Force: 46,014 people (2,290 unemployed)
- One-month Change: +0.8 percentage points
- One-year Change: +0.4 percentage points
Polk County’s employment situation is also showing signs of strain. The rise in unemployment over the past month reflects the ongoing economic challenges that are affecting both rural and suburban areas in Oregon.
- Marion County (tie)
- Unemployment Rate: 5.1%
- Labor Force: 177,369 people (9,093 unemployed)
- One-month Change: +0.9 percentage points
- One-year Change: +0.4 percentage points
Marion County has also seen a modest rise in unemployment. This increase may reflect regional disparities in job opportunities, as well as the broader state-wide trends of slowdowns in hiring.
- Yamhill County (tie)
- Unemployment Rate: 5.1%
- Labor Force: 56,107 people (2,876 unemployed)
- One-month Change: +1.1 percentage points
- One-year Change: +0.8 percentage points
Yamhill County’s unemployment rate has been steadily climbing. The rate’s increase could be due to changes in agriculture and other industries that are significant to the area’s economy.
- Multnomah County (tie)
- Unemployment Rate: 5.2%
- Labor Force: 468,538 people (24,521 unemployed)
- One-month Change: +1.0 percentage points
- One-year Change: +0.7 percentage points
Multnomah County, home to Portland, has seen an uptick in unemployment. As one of the state’s most populous areas, Multnomah represents a microcosm of the broader issues facing urban areas, including shifts in local industries.
- Malheur County (tie)
- Unemployment Rate: 5.2%
- Labor Force: 12,746 people (663 unemployed)
- One-month Change: +1.1 percentage points
- One-year Change: +0.3 percentage points
Malheur County, with its more rural economy, has also experienced rising unemployment. The area’s challenges might be related to slower recovery in the agricultural sector.
Conclusion The unemployment data in Oregon shows that while some counties are managing to keep their job rates steady or decreasing, many others are facing rising unemployment. This is a result of various factors, including shifts in industries, seasonal work, and the broader uncertainty in the national economy. As we move through 2025, it will be crucial for policymakers and businesses to focus on stabilizing the job market and creating sustainable job growth across the state.
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