"C" What's New Around the State

This week we have a bundle of businesses in our Around the State listings that begin with the letter C. Two of them include big hiring announcements:

• Charming Charlie, a Houston-based women's apparel store, will open at the Streets of Tanasbourne in Hillsboro. The Oregonian, 5/30/2012

• Comcast Corp. will add 100 jobs at its Beaverton call center, primarily in its inbound sales call center and in supervisory roles. Portland Business Journal, 5/30/2012

• Portland-based Consumer Cellular is stepping in to fill a void that was created when T-Mobile shuttered its Redmond call center. It will sub-lease the center from T-Mobile beginning on August 1 and plans to hire more than 650 workers, including many former T-Mobile employees. Portland Business Journal, 5/30/2012

A couple of other businesses have big hiring plans as well:

• The Gresham Walmart Neighborhood Market East will open in January. It will employ about 95 people. Portland Business Journal, 5/18/2012

• Wells Fargo plans to hire as many as 200 employees for its call center in Salem. Statesman Journal, 5/29/2012

Interested in more employment-related news? Check out the full edition, or use our customized search tool to find information in your area! 

Earnings Aren't Keeping up with Inflation

Between 2007 and 2011, inflation rose by about 8 percent for all urban consumers in the Portland-Salem area. So, a worker would need to earn 8 percent more in 2011 than in 2007 just to keep up with the rising costs of goods and services.

After adjusting for inflation, Oregon's average private-sector wages were between about $680 and $690 per week (12-month moving average) from most of 2008 through early 2012. During 2007, average wages were $10 to $15 higher per week. Many factors are at play behind the trend: changes in the duration of the workweek; shifts in industry employment; and other changes in the composition of the workforce. Still, it seems clear that the real wages of Oregon workers haven't advanced in recent years. This chart shows average weekly earnings adjusted to 2007 dollars.

A recent article from the Wall Street Journal picks up on lagging wage growth nationwide, but focuses on manufacturing. The article claims that the lack of growth in inflation-adjusted wages is a key factor contributing to the rebounding competitiveness in U.S. manufacturing. Reasons include wage growth in lower-wage countries that compete with the U.S., and high domestic unemployment which has prompted negotiations that restrain or reduce wages and benefits. Some U.S. manufacturers have negotiated two-tier contracts that allow new hires to be paid less than existing starting wages. 

The story notes that earnings for production and other nonsupervisory workers in manufacturing averaged $19.15 an hour in April, where they were in 2000 (adjusted for inflation). By comparison, average hourly earnings for all private-sector production and nonsupervisory workers rose by 5.3 percent to $19.72 since 2000. Averages don't account for change in the industry over time, and wage measures don't count costs for health and retirement benefits. So the Employer Cost Index, which includes benefits and is adjusted for the changing mix of occupations and industries, was also examined. It shows that, adjusted for inflation, manufacturers' labor costs were 2.7 percent lower in the first quarter of 2012 than in 2005, when the economy was stronger and unemployment was lower. For public and private civilian employers of all sorts, labor costs were basically flat—down 0.3 percent. 

For more information on average weekly earnings in Oregon, contact Economist David Cooke or read his full article. For more information on wages in U.S. manufacturing, check out the Wall Street Journal piece.

Oregon Receives $2.1 Million for Site Cleanup

An article from Sustainable Business Oregon reports that the state and several local governments will receive $2.1 million from the Environmental Protection Agency (EPA) to clean up contaminated "brownfield" sites. According to Wikipedia "brownfield" refers to land previously used for industrial or commercial purposes that may have low levels of hazardous waste or pollution, where the land has the potential to be reused once it is cleaned up. The funding could give a boost to employment in some former industrial areas, although the effects may not be immediate.

According to the story, Business Oregon -- the state's economic development agency -- will receive $700,00 for a loan fund. The City of Eugene will receive $680,200 to assess clean up sites with leaders from Springfield and Lane County. The Northeast Oregon district will put $400,000 towards site assessments in Baker, Union, and Wallowa counties. Vernonia is also slated to receive funding for assessments. In Troutdale, $200,000 will be used to redevelop a riverfront property that formerly served as a slaughterhouse and rendering plant.

More information on these grant awards is available from the full release on the EPA website.

Name that Business Around the State

Many of this week's Around the State business announcements include places with people's names:

• Ike's Pizza in Leaburg will reopen. Springfield Times, 5/7/2012

• Jimmy John's, a sandwich shop, will open in south Salem. Statesman Journal, 5/16/2012 

• Jo-Ann Fabric and Craft Store will open in Grants Pass by the end of the summer. It will employ about 30 people. Grants Pass Daily Courier, 5/11/2012

• Patty's Café and Gifts opened in Haines. It offers soups, salads, sandwiches, and desserts, as well as gifts. Baker City Herald, 5/18/2012

• Pieper Café opened in southeast Portland. It offers espresso drinks, bagels, donuts, sweet and savory panini, and cheese and hummus platters. Neighborhood Notes, 5/1/2012

 You can find all the latest business listings in the full edition!

Slow Job Growth and Slowing Population Growth in Oregon

Each month the Research Division of the Oregon Employment Department publishes articles on current trends in the labor market and workforce issues. Our newest set of articles were just published on QualityInfo. Here's a sampling of articles for you:

Slow Job Growth

Job growth following the recession has been excruciatingly slow. One measure of job growth shows that Oregon's economy lost 147,900 jobs in the recession. In the following 25 months through December 2011, the state added back just one-fourth of those jobs. Stagnant job growth and declines in construction, financial activities, and government continue to stifle job growth. What's more, most employers indicate no intention of adding new staff anytime soon. Read more about this key workforce challenge in the full article, co-authored by State Employment Economist Nick Beleiciks and Economist Gail Krumenauer.

Slowing Population Growth

Regional Economist Amy Vander Vliet's article tells us that Portland's job growth is still below pre-recession norms. The five-county area added 16,670 residents in 2011. That's about the size of Pendleton, Coos Bay, or Troutdale. While impressive, it's far fewer than the 24,000 residents the region gained annually in the years prior to the recession. In 2011, net migration nearly ground to a halt. People might still be uncertain about the economy and less willing to move without a job lined up, especially to an area as hard hit as Portland. 

The sharp decline in net migration is true at the statewide level as well. A second article on population growth shows that net migration has dominated Oregon's yearly population change for the last 30 years. In general, net migration into Oregon has followed the boom and bust of the overall economy.

Are you interested in receiving the full Oregon Labor Trends publication? You can request the print edition with our publications order form!

Portland, Central Oregon, and Southern Oregon Lead Job Growth in April

The Oregon Employment Department recently released unemployment rates and employment estimates for each of Oregon's 36 counties in April. Benton County (5.7%) had the lowest unemployment rate for the month, while Crook County (13.5%) had the highest rate. 

Total nonfarm payroll employment rose between April 2011 and April 2012 in four of Oregon’s six broad regions. The five counties in the Oregon portion of the Portland metro area led the way with a growth rate of 1.0 percent over the year. Smaller gains occurred in Central Oregon (0.8%), Southern Oregon (0.5%), and along the coast (0.3%). Eastern Oregon (-0.2%) experienced a small employment decline over the year. The Willamette Valley continued to struggle; the region posted a job loss of 1.0 percent since April 2011.

For more information about your local area, visit the current employment statistics and local area unemployment statistics pages at QualityInfo!

Local News From Stage to Shore

Performing arts is big business in the Rogue Valley, according to an article in the Mail Tribune. A recent study by the Ashland Chamber of Commerce shows that the arts, entertainment, and recreation industry comprises about 30 percent of all the city's visitor spending. This amounts to more than $22 million each year. As an added bonus, the article also quotes two of the Oregon Employment Department's Research staff members: Regional Economist Guy Tauer and Workforce Analyst Ainoura Oussenbec. Read more about the impact of performing arts in southern Oregon in the full story.

Another local article on the Oregon coast shares good news for all you amateur fishers out there: according to the Oregon Department of Fish and Wildlife, recreational clamming and ocean crabbing harvests improved in April. Bay crabbing is still pretty slow, but expected to pick up over the next couple of months. Get more details in the full report.

Long-term Unemployment: Challenges and Solutions in National News

Reuters and CNN Money recently published a couple of articles on long-term unemployment, a subject we've discussed before on this blog. In April 2012, 37 percent of unemployed* Oregonians had been without work for more than 27 weeks, compared with 41 percent of the U.S. unemployed population.

In addition to youth, older workers are among those facing long-term unemployment. According to a Reuters article, the number of long-term unemployed workers ages 55 and over has more than doubled since 2007. The story also references a Government Accountability Office (GAO) report detailing the significant impacts of unemployment on the   retirement income of jobless seniors. 

Which leads us to a CNN Money piece describing a potential solution to the challenge of getting the unemployed back to work: ask companies, the general public, and other organizations to subsidize jobs. A Connecticut-based non-profit agency, The WorkPlace, is doing just that through a program called Platform to Employment. The group has already raised about $580,000, with an additional $200,000 donated by AARP to assist older (50+) workers. Read the full article for more details on the Platform to Employment program.

*The official statistical definition of "unemployed" covers individuals in the labor force that had no job, were available for work, and made specific efforts to find work within the last four weeks. A person does not have to be drawing unemployment insurance benefits to be counted as unemployed for statistical purposes. Read more on that here.

Job Impacts Around the State

There were several important employment announcements around Oregon this week:


SOUTHERN OREGON

 • The Josephine County Sheriff's Office plans to lay off 70 workers, including 21 deputies, after a public safety measured failed. The juvenile department will close and beds will be rented from the Jackson County jail. KDRV, 5/16/2012


EASTERN OREGON

• Heppner-based Bank of Eastern Oregon will open new loan production offices in Island City and Pendleton. Its other loan production offices are in Hermiston and Ontario. The Observer, 5/2/2012


PORTLAND AND SURROUNDING AREAS

• AB Car Rental Services Inc. in Portland will lay off 55 airport shuttle workers in July as it moves to outsource operations associated with its Avis and Budget brands. Portland Business Journal, 5/15/2012 


WILLAMETTE VALLEY

• Truitt Brothers Inc., a Salem-based food processor, will eliminate as many as 139 jobs starting in mid-July as part of the closure of its green bean canning facility. Another 200 to 250 seasonal employees will be lost. The Oregonian, 5/15/2012

• Harry & David, a Medford-based gourmet food manufacturer, plans to reopen its seasonal call center in Eugene this fall and hire 700 to 800 people. It operated the call center for the holiday rush for more than 20 years, but closed in 2010. The Register-Guard, 5/15/2012

Read the full list of business announcements in this week's AtS, or search our news archives using the online tool.

Unemployment Insurance Recipients in 2011

In 2011, 326,766 people received more than $1.9 billion in unemployment insurance (UI) benefits in Oregon. This was a reduction of more than $800 million from the record amount of benefits paid in 2010. 

The number of UI recipients is historically high due in part to the 73 weeks of extension benefits available to most claimants. During non-recessionary years, most claimants qualify for only 26 weeks of benefits. Regular claim levels were high, but declined over the year. This indicates that newly unemployed were getting back to work, but the long-term unemployed were still struggling.

In 2011, 42 percent of claimants were compensated for six or fewer months on their claim, while 58 percent received benefits for longer periods. By the end of 2011, over 50,000 people had exhasuted all of their benefits since 2009. Though this number is very high, it represents only 7 percent of those who started a claim and could have exhausted 99 weeks of benefits since 2008. Many claimants are still eligible to claim benefits on older claims, so this percentage is preliminary.

Learn more about unemployment insurance recipients in the full article, written by Economist Mary Bernert (Mary.M.Bernert@state.or.us or (503) 947-1975).