Oregon added 5,800 payroll jobs in September, but the state still has only 2,600 more jobs than it did a year ago. The latest figures offer some encouragement for employers and workers, though they also show how uneven the recovery has been.
The Oregon Employment Department reported Wednesday that construction led September's gains, while retail employment fell sharply. The state's unemployment rate edged down from 5.1% in August to 5% in September, remaining above the national rate of 4.2%.
For Salem-area businesses, the report raises an important question: Is the statewide improvement reaching the Mid-Willamette Valley?
Construction added 2,000 jobs across Oregon in September after seasonal adjustments. Health care and social assistance gained 1,700 positions, while leisure and hospitality added 1,300.
Retail trade moved in the opposite direction, losing 1,500 jobs. It was the largest monthly decline among the industries tracked in the report.
The gains follow months of relatively weak employment growth. August's job numbers were revised upward from an initially reported loss of 800 positions to a gain of 2,600, illustrating how substantially preliminary employment estimates can change.
Even with the stronger September showing, Oregon's total payroll employment increased just 0.1% over the past 12 months.
Health care and social assistance remain the clearest source of sustained growth, adding 12,100 jobs over the year, a 3.8% increase. Manufacturing lost 4,300 jobs during the same period, while government employment declined by 4,000.
Construction has begun recovering from earlier weakness, but the statewide gains do not necessarily reflect conditions in Salem.
The most recent employment report for the Salem metropolitan area, which includes Marion and Polk counties, covered August. It showed seasonally adjusted employment declining by 200 jobs from July, although the region still had 2,800 more jobs than a year earlier, an increase of 1.5%.
Salem's unemployment rate held at 4.9% in August, below Oregon's statewide rate of 5.1% that month.
Local industries also showed mixed results. Construction employment remained 500 jobs below August 2025 levels, while professional and business services lost 400 jobs during August alone.
For local employers, the distinction matters. Stronger statewide hiring does not necessarily mean every industry or region is adding workers at the same pace.
Oregon's unemployment rate has now remained between 5% and 5.3% for 19 consecutive months. September's job growth is encouraging, but one stronger month does not establish a sustained turnaround.
The Oregon Employment Department is scheduled to release September employment and unemployment figures for Marion and Polk counties on Tuesday, October 20. Those numbers will provide a clearer picture of whether the latest statewide gains extended into the Salem economy.