Oregon Business Employment Dynamics Report: Second Quarter 2018

by Ken Lux

April 8, 2019

Opening and expanding establishments added 101,845 jobs in the Oregon private-sector economy between March and June 2018, a decrease of 24,373 in the number of jobs gained compared with the first quarter. 

Private-sector establishments with job losses due to closings and contractions reduced employment by 101,444 jobs during the same time period. The result was a modest increase of 401 jobs. Opening establishments gained 16,836 jobs, which was 885 more than the 15,951 jobs lost due to establishments going out of business. Expanding private-sector establishments added 85,009 jobs while contracting establishments resulted in a loss of 85,493 jobs.

As was noted last quarter, approximately half of the increase in the number of jobs gained through opening establishments in the first quarter was the result of a change made by the Oregon legislature that impacted how employment for home care workers paid through the Department of Human Services are counted. One effect of the change in reporting was to overstate the number of gross job gains due to opening establishments. Comparing second quarter job gains due to opening establishments to that of the first quarter is also impacted by the reporting change. 

The percentage of gross job gains in the second quarter of 2018 at expanding establishments dropped by 0.5 percent from 5.7 percent to 5.2 percent of private-sector employment in Oregon.  The U.S. national rate increased slightly, rising from 4.9 percent to 5.0 percent of U.S. private-sector employment. The percentage of gross job gains at opening establishments in Oregon declined from 2.1 percent to 1.0. This also is primarily due to the change in how the home care worker employment is reported and counted.

The rate of gross job losses at contracting establishments in Oregon increased by 0.4 percent to 5.2 percent of private-sector employment; the national rate increased to 4.5 percent. The rate of gross job losses at closing establishments in Oregon increased by 0.2 percent to 1.0 percent; the national rate increased by 0.1 percent.

The seasonally adjusted number of Oregon establishments gaining jobs in the second quarter decreased from 34,270 to 32,542, a loss of 1,728 establishments. The number of establishments losing jobs increased by 2,590 to 32,630. The number of establishments that opened (6,257) was greater than the number of establishments that closed (5,927) resulting in a net gain of 330 establishments.

Expanding establishments added an average of 3.2 jobs per establishment while opening establishments added 2.7 jobs per establishment. Contracting establishments lost an average of 3.2 jobs and closing establishments lost an average of 2.7 jobs.


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