The Diversity of Oregon’s Industries

The racial and ethnic diversity of Oregon’s total nonfarm employment pales in comparison with the United States. The private sector of the U.S. in 2019 was comprised of a more racially diverse set of workers, with 24 percent non-white employment compared with Oregon’s 14 percent. Moreover, the ethnic diversity of the U.S. is more robust than Oregon – 17 percent of private employment is held by Hispanic or Latino workers compared with Oregon’s 13 percent share among the cohort. These metrics are almost entirely due to the demographical makeup of our state’s population. Still, even with somewhat limited diversity in Oregon’s total nonfarm employment, it’s worth observing which industries are most diverse, and examining how diversity by industry could potentially lend itself to an inequitable recovery following the initial impacts of COVID-19.

Race

For this analysis’ definition of diversity, we’re looking at the industries with the greatest shares of people of color on average in 2019. Some of Oregon’s most racially diverse industries include accommodation and food services (17.1% share of people of color), manufacturing (16.6%), management of companies and enterprises (15.5%), administrative and waste services (14.4%), and health care and social assistance (14.2%).

The least racially diverse industries are the ones with the least representation of all races. In other words, the industries that have the greatest shares of white employment. These industries include educational services (89.3% white); real estate and rental and leasing (89.3% white); construction (91.7% white); utilities (92.0% white); and mining, quarrying, and oil and gas extraction (94.4% white).

Ethnicity

Looking at the ethnic diversity of Oregon’s industries, we see a similar trend in many industries for their lack of diversity, but others make some significant shifts. Comparing which industries have a higher share of Hispanic or Latino employment, we see that some are significantly more diverse than others.

The industries with the greatest share of ethnic diversity include agriculture, forestry, fishing and hunting (33.5% Hispanic or Latino employment); accommodation and food services (17.1%); administrative and waste services (15.9%); manufacturing (15.4%); and construction (13.1%). One important detail to note is that most agricultural employment is not captured in our traditional employment metrics since the majority of the industry’s employment isn’t covered by unemployment insurance. Therefore, the share of diverse employment in agriculture is likely understated in these graphs since they only capture a fraction of overall industry employment in the state.

Job Recoveries in the Most Diverse Industries

Unfortunately, the industry that is the most racially diverse, and the second most ethnically diverse, is having a difficult time recovering after the initial COVID-19 impacts. Accommodation and food services shed more than half of its jobs in the initial months of COVID-19, and is still down 21 percent from its February employment levels as of October. As restaurant employers in this industry have been able to move part of their operations outside during the warm summer months, this allowed them to increase their patronage and keep staff on payroll. As the colder months of winter roll into Oregon, the harsh weather likely won’t allow restaurant owners to comfortably accommodate outdoor dining. This second blow to the restaurant industry will further hamper the accommodation and food industry’s ability to quickly recover the jobs it shed between March and April.

To learn more, read Workforce Analyst Kale Donnelly's full article here.

In Honor of Juneteenth: Black Oregonians in the Labor Force

This Friday June 19, celebrate freedom by celebrating Juneteenth! Short for “June Nineteenth,” Juneteenth commemorates the 1865 arrival of federal troops in Galveston, Texas, to ensure that all enslaved people be freed. Their arrival was over two years after the signing of the Emancipation Proclamation. Juneteenth is considered the longest-running African-American holiday (read more at History.com). In honor of Juneteenth, here are some facts about Oregon's Black population and laborforce.

According to U.S. Census Bureau’s 2018 American Community Survey estimates, there are about 116,586 residents of Oregon who identify as Black or African American alone or in combination with another race, or about 3 percent of Oregon’s population. According to The Oregon Encyclopedia, Oregon's racial makeup has been shaped by three black exclusion laws that were in place during much of the region's early history. These laws, all later rescinded, largely succeeded in their aim of discouraging free blacks from settling in Oregon early on, ensuring that Oregon would develop as primarily white.

Black Oregonians in the Labor Force

There are roughly 60,000 Oregonians age 16 years or older who identified as Black alone in 2018. Black Oregonians have higher rates of labor force participation (65.2%) than all Oregonians (62.2%) but also a higher rates of unemployment at 10.8 percent compared to 6.0 percent for all Oregonians.

Though only a small share of Oregon's workforce (2%) identifies as Black or African American, the number of Black workers has grown rapidly over the past 20 years. From 1999 to 2019, the number of Black workers has grown by 85 percent, from 28,773 in 1999 to 53,210 in 2019, according to the U.S. Census Quarterly Workforce Indicators data. This is a much faster growth rate than for the Oregon workforce overall (23%).

More than half of Black workers statewide are employed in one of three sectors: educational services, health care, and social assistance (28%); retail trade (12%); or manufacturing (11%).

Another one-fourth of Oregon’s African Americans work in arts, entertainment, accommodation and food services (11%); professional, scientific, management, administrative, and waste management services (7%); or transportation, warehousing, and utilities (7%). The remaining balance are spread across other sectors.

African Americans have the third highest average monthly earnings in the state at $3,786 or 84 percent of the 2018 statewide average ($4,518). Asian residents had the highest average monthly earnings at $5,589, followed by white residents at $4,528. Native Hawaiian or Other Pacific Islanders ($3,382), and American Indian or Alaska Natives ($3,247) had the lowest monthly earnings statewide.

To learn more about Black Oregonians in the labor force, check out the following articles:

African Americans in the Oregon Workforce

Race and Ethnic Diversity in Oregon’s Workforce

Wage Disparity by Race and Ethnicity

Over the last decade, the wage disparity by race and ethnicity in Oregon has remained consistent. According to the U.S. Census Bureau’s Longitudinal Employer-Household Dynamics (LEHD), Asian and non-Hispanic white workers have the highest wages. In 2018, wages for black, American Indian, mixed-race, and Hispanic or Latino workers of any race ranged between $39,000 and $45,000 annually – at least $10,000 less than white workers and $20,000 less than Asian workers.

However, real wages have grown faster for Hispanic and Latino and black workers than for non-Hispanic white workers. On average, real wages for Oregon workers grew 13.1 percent from 2008 to 2018, an increase of $6,256. American Indian workers have seen the lowest real wage growth of 11.8 percent in the last decade. Real wages for all other racial and ethnic groups grew by at least 14 percent. Asian workers have seen the most real wage growth at 27 percent, an increase of $14,160 in their annual average wages.

This wage disparity is due in part to the industries of employment for each racial and ethnic group. The largest industry of employment for all groups is education and health services, with an annual average wage of $51,550 in 2018. However, the breakdown of employment after this industry varies. In aggregate, the second most common industry of employment for people of color is leisure and hospitality, which had the lowest annual average wages in 2018 ($22,754). In contrast, the second most common industry of employment for non-Hispanic white workers is professional and business services, with an annual average wage of $69,800. Manufacturing, which has one of the highest annual average wages in the state ($70,652), employs 18 percent of Asian workers, which may help explain Asian workers’ higher incomes.

Educational attainment is also a factor. The 2018 American Community Survey reported that 36 percent of non-Hispanic whites over 25 have a bachelor’s degree or higher, compared with 27 percent of people of color. However, 51 percent of Asian residents have a bachelor’s degree or higher, the highest of any race or ethnicity. Typically, those with higher education qualify for higher-paying jobs, which also factors into the higher annual average wages for Asian and non-Hispanic white workers.

As Oregon’s population continues to diversify, these patterns may change. Positive changes may depend on increasing access to education for people of color and creating pathways to employment in higher-wage fields.

To learn more, read economist Sarah Cunningham's full article here.