Oregon sheds jobs for the first time in 16 months as economic slowdown continues

The regional economy has cooled considerably but economists see no signs of imminent trouble. (Oregonian file photo)

Oregon's total employment fell by 2,900 jobs in April, the first monthly decline since December 2016, according to state jobs data released Tuesday.

Statewide unemployment remains at a historic low, 4.1 percent, but Oregon wage growth has slowed after three years of strong gains.

Economists have been warning for months that Oregon's economy would cool as the state neared full employment. That's reduced the capacity for additional growth.

The state's economy remains relatively strong overall; Oregon added 29,600 jobs over the past 12 months – a 1.6 percent gain. Still, that's much slower than the pace three years ago when Oregon employment grew at 3.7 percent.

In a study released last week, Oregon regional labor economist Pat O'Connor found state "wage growth slowing to a grinding halt" beginning last summer. The slowdown coincided with the weakening job market, according to O'Connor, but he said Oregon's aging work force may also be a contributing factor.

"Many Baby Boomers continue to reach retirement age; retiring out of what are typically close to peak earnings years for most workers," O'Connor wrote. "At the other end of the age spectrum are young Oregonians new to the labor force. When inexperienced workers enter the labor force, they typically earn lower wages than workers with more experience."

Economists remain upbeat about Oregon's economy for the near term, though. In his biennial survey of the Portland area's economic outlook, also out Tuesday, Portland State University economist Tom Potiowsky wrote that the region is in its ninth year of expansion – one of the longest stretches on record.

Signs of slowing population growth, and a cooler housing market, are reflective of a more mature economic expansion without any immediate signs of trouble.

"As such, we see growth continuing in the Portland (area) at a slower rate but no recession on the horizon – at the very least, not in 2018," Potiowsky wrote.

-- Mike Rogoway; twitter: @rogoway; 503-294-7699

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