Payroll employment rose sharply in April while Oregon’s unemployment rate dropped to 6.7 percent, the lowest figure in nearly three years, the Oregon Employment Department reported Thursday.
Job gains throughout many private-sector industry categories were above normal for the time of year. Overall, payroll employment grew by 13,400 jobs, which was 8,600 jobs above the normal seasonal movement. This measure of employment has grown strongly for the past three months.
Even after a decline in January, seasonally adjusted total nonfarm payroll employment has grown by 15,600 jobs in the first four months of the year. This is an average monthly gain of 3,900 jobs.
Oregon’s seasonally adjusted unemployment rate dropped to 6.7 percent in April from 7.2 percent in March. It was the first month since August 2001 in which Oregon’s unemployment rate has been below 7 percent.
The April reading was Oregon’s lowest unemployment rate in the past 33 months. Not since July 2001 – when the rate was 6.4 percent – has Oregon’s unemployment rate been lower. Oregon’s unemployment rate has now dropped 2 full percentage points since reaching its recent high of 8.7 percent in July 2003.
Meanwhile, the U.S. unemployment rate also declined in April, edging down to 5.6 percent, from 5.7 percent in March. In comparison, Oregon’s unemployment rate is 1.1 percentage points above the U.S. rate. This is the closest the gap has been since March 2001, when the U.S. unemployment rate was 4.3 percent and Oregon’s unemployment rate was 5.3 percent, making the gap 1.0 percentage point.
In April, 130,031 Oregonians were unemployed, a drop of 20,319 from March.
Seasonally adjusted total nonfarm payroll employment rose by 8,600 jobs in April after a gain of 4,700 jobs (as revised) in March. Two of the major industries contributed most of the April job gains: professional and business services (+5,100 jobs) and leisure and hospitality (+2,500 jobs). With the exception of government (-900 jobs), all other major industries showed flat or slight growth, posting seasonally adjusted changes of between zero and 600 jobs.
Professional and business services saw rapid job gains in the past two months. Seasonally adjusted employment in this industry grew by 5,100 jobs in April, following on the heels of a gain of 1,900 jobs in March. In April, employment services added 2,200 jobs to its payrolls and now stands 4,300 jobs above its year-ago level. Another strong component was services to buildings and dwellings, which added 1,500 jobs in April. Two other industries within the larger grouping posted job gains in April: professional and technical services (+500 jobs) and management of companies and enterprises (+300 jobs).
Leisure and hospitality was the other major industry group with strong growth in April. This highly seasonal industry added 4,900 jobs – about double the normal trend for the time of year. Job gains were widespread as all published component industries registered job gains for the month. Food services and drinking places showed particularly robust hiring trends, adding 2,900 jobs in April. Accommodation wasn’t far behind with 900 added jobs. Also benefiting from the economic upturn and warm, dry weather were many firms in the amusement and recreation industry, which grew by 1,000 jobs.
Manufacturing reported the third-most impressive numbers of the major industry categories. It grew by 1,600 jobs at a time of year when a job gain of 1,000 would be the norm. Manufacturing is now up 4,600 jobs from April 2003, a 2.4 percent gain.
In April, computer and electronic product manufacturing posted a gain of 500 jobs. While not a definitive rebound, the job gain for the month did place this industry at a level of 40,100 jobs – its highest employment level of the year. Employment in this industry has expanded from a low point of 39,300 in January.
Transportation equipment manufacturing added 300 jobs in April and is up 3,000 jobs in the past 12 months. Many types of businesses are experiencing strong demand in this industry including those that make motor coaches, railcars and heavy trucks. On the downside was food manufacturing, which cut 300 jobs in April. Still, it is up 600 jobs since April 2003.
Construction added 1,100 jobs to its payrolls in April. This gain was 200 jobs above the typical trend for April. Demand for commercial, industrial and office buildings may be firming, evidenced by the 500-job gain for the month in nonresidential building construction. All three major segments within construction posted job gains for the month: construction of buildings (+400 jobs), heavy and civil engineering (+500 jobs), and specialty trade contractors (+200 jobs). Overall, construction is up 4,600 jobs from its year-ago figure for a gain of 6.3 percent.
Retail trade added 1,100 jobs in April after three months of no growth. Motor vehicle and parts dealers reported a gain of 800 jobs for the month. General merchandise also grew significantly by 600 jobs, followed by building material and garden supply stores, which added 400 jobs. A large loss of 1,100 jobs was reported in food and beverage stores. In total, retail trade was 400 jobs below its year-ago level.
Government employment dropped by 2,000 in April. Losses were concentrated in state government, which cut 1,900 jobs after an unusual gain of 2,000 jobs in March. In local government, education cut 200 jobs in April and is down 500 jobs since April 2003.
