Lee Fehrenbacher//December 13, 2011//
Oregon’s construction industry added 900 jobs in November, continuing a year-long period of tepid growth.
The Oregon Employment Department reported today that construction employment increased 1 percent to 70,300 jobs last month 鈥 a return to September levels 鈥 while total non-farm payroll employment fell 1.6 percent to 1.6 million jobs.
While non-farm employment was down in November, so was Oregon’s unemployment rate, which dropped 0.4 points to 9.1 percent.
鈥淚t’s a good sign that the losses have largely stopped in the construction industry,鈥 said State Employment Economist Nick Beleiciks. 鈥淥n the other hand, it’s a bad sign because we haven’t seen growth like we have in other industries.鈥
Joining the construction industry in November in employment gains was the educational and health services industry, which was up 2,300 jobs, and trade, transportation and utilities 鈥 up 1,900. November saw losses in leisure and hospitality 鈥 down 3,000; manufacturing 鈥 down 2,300; financial activities 鈥 down 1,100; and government 鈥 down 900.
After dropping from a high of 105,100 jobs in July 2007 鈥 just before the economic recession 鈥 construction employment decreased approximately 36 percent to a low of 66,400 in September 2010. The industry has remained relatively flat this year between 68,000 and 70,000 jobs.
While he said he didn’t see those levels being the new normal, Beleiciks said Oregon should get used to them for the foreseeable future.
鈥淲e do expect growth,鈥 he said. 鈥淭here will be some recovery, but it may take a really long time to get back to those housing bubble levels. In fact, that may take over a decade.”
Beleiciks pointed to the economic collapse in the early 1980s in which 54 percent of the jobs in the construction industry were lost. That fallout hit bottom 4 years later in 1983, but the recovery took more than 10 years to return.
鈥淭he nature of the economy is it’s going to grow and so eventually we should get back,鈥 he said. 鈥淐onstruction is a very place-based industry, so as long as people keep moving to Oregon we’re going to see growth in that industry.鈥