Construction Industry Employment a Bright Spot in Northwest Oregon
January 4, 2022 Northwest Oregon has had its share of bad news in 2021 as businesses have struggled to find customers or staff, or both, but the construction industry has been a bright spot for the region. Construction employment in Clatsop, Columbia, Lincoln, and Tillamook counties climbed to around 3,100 jobs during the summer of 2021 and seemed to be having just a small seasonal drop as the industry headed into winter. The last time employment was this high was during the housing boom of 2006 to 2008. This time the growth looks much more sustainable.
This growth in construction employment has been faster than comparable overall employment growth and faster than population growth. Overall growth in nonfarm payroll employment was 21% in Clatsop County, 18% in Columbia County, 3% in Lincoln County, and 17% in Tillamook County. Population growth from 2001 through 2021 was 16% in Clatsop County, 19% in Columbia County, 13% in Lincoln County, and 13% in Tillamook County.
Does this mean the construction industry is heading for another boom and bust? Probably not, at least in the foreseeable future. Not only are lending standards more strict than during the boom of the mid-2000s, but the construction industry’s share of total employment in the four counties is pretty typical. Statewide the construction industry comprises 5.9% of total nonfarm payroll employment. It has the same share in Clatsop and Columbia counties and is below this share in Lincoln County (4.6%) and Tillamook County (4.7%). Additionally, these shares have grown only slowly over the past 20 years. In sum, the construction industry does not make up an unsustainable share of the economy in Northwest Oregon. Instead, the industry is growing moderately in response to a real and sustained increase in housing demand.