The number of Oregon job openings is returning to normal levels as the state’s tight labor market begins to relax.
Employers had about 65,000 open jobs at the end of last year, according to the latest quarterly survey from the Oregon Employment Department. That’s down 25% from a year earlier – the fourth straight period that job vacancies have declined by at least that much.
Oregon had more than 100,000 vacant jobs for a long stretch in 2021 and 2022, an extraordinary number that exceeded the number of people looking for work.
Since then, the number of Oregon job openings has fallen by more than half. It’s still elevated compared to the end of 2019, just before COVID-19 hit and completely upended the labor market.
But economists are seeing more signs that the extremely tight labor conditions that followed the pandemic are behind us.
For example, just 25% of job vacancies were open at least 60 days last year, according to a new report by employment department economist Anna Johnson. Job vacancies were open much longer in 2021 and 2022 – nearly two-thirds were open longer than 60 days.
And employers surveyed by the state rated fewer positions as difficult to fill.
Why is that? Well, Oregon job growth has slowed considerably. The state’s work force expanded by 1.9% last year, down from 2.9% in 2022 and 5.5% in 2021.
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If employers have an easier time filling jobs, that can make their businesses more productive and profitable. Think of restaurants being able to open more days each week, or factories running an extra shift.
It stands to reason that a looser labor market also would reduce pressure on employers to raise starting wages. But slower wage growth isn’t showing up in the data, at least not yet.
The average starting pay for Oregon job vacancies last fall was $25.62, according to the state data, up 7% from last summer after adjusting for inflation.
If Oregon’s job market is easing up overall, certain industries remain very tight. Health care, construction, hospitality and factory jobs had the most vacancies last fall.
Positions employers reported the most trouble hiring for were truck drivers, personal care aides, carpenters and nurses.
This is Oregon Insight, The Oregonian’s weekly look at the numbers behind the state’s economy. View past installments here.
-- Mike Rogoway covers Oregon technology and the state economy. Reach him at mrogoway@oregonian.com
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