11/14/2005

By WILLIAM McCALL  / Associated Press

The state's economy is showing more signs of a strong recovery and job growth after unemployment fell to its lowest level in more than four years in October.

Gov. Ted Kulongoski made a special appearance Monday at the monthly Oregon Employment Department briefing to announce the statewide jobless rate fell to 6 percent for the first time since April 2001.

He noted the state economy has the sixth-fastest growth rate in the nation, with a steady expansion over the past two years.

"We've created more than 81,000 jobs in this state" since January 2003, the Democratic governor said. "And it's regional growth, not just in a particular area."

Art Ayre, the state's chief labor economist, said the Oregon economy has grown at a steady 3 percent rate for nearly two years, more than double the average 1.4 percent growth rate nationally.

Private companies performed even better than the slower public sector, growing 3.6 percent in Oregon compared to 1.5 percent nationally over the past 12 months, Ayre said.

The state had recovered the 64,000 jobs it lost in the recession by last January and has gained another 40,400 since January, he said.

"You have to ask yourself, 'Is Oregon doing something right?'" Kulongoski said. "And I think it is."

Nationally, the unemployment rate was essentially unchanged at 5 percent in October, about the same as the previous five months.

Oregon had suffered the highest jobless rate in the nation for most of the recession but has been making up ground in the past year. The one-point difference between the Oregon unemployment rate in October and the national rate was the smallest since January 2001, Ayre said.

The Oregon growth rate likely will slow, probably to about 1.5 percent, but so far has outpaced the nation, he said.

Some Oregonians who were at the Employment Department during the announcement said they had mixed feelings about the improvement.

William Hones, 50, said he came from Britain when he was 22 and hitchhiked across the United States to find a job with a cruise ship line. He has never had trouble finding a job, even during the recession, including his current job as a building maintenance worker, he said.

"There's no reason not to work in this country," Hones said. "There should be no reason you can't find a job."

But he said he has had his share of bad jobs, including a two-year stint as a cab driver he called "the worst job I've ever had."

His feelings were echoed by Lucia Marie DelosantosCoy, 28, who has been working part-time for a temporary help service.

"I just applied for unemployment for the first time," DelosantosCoy said.

"Yeah, there are more jobs out there, but it's an issue of quality vs. quantity," she said. "There aren't enough quality jobs."

Kulongoski urged stronger support for education, including vocational programs for skilled workers. As an example, he noted the number of skilled millwrights is declining in Oregon as many approach retirement age.

"It will end up hurting our economy over the long run if we don't invest in those skills," Kulongoski said. "They're good jobs. You can have all the engineers and all the scientists you want. But someone has to pick up the tools and build the buildings and the roads and the bridges."

In October, most of the major industries in Oregon performed slightly better than their normal seasonal trend. The gains were led by trade, transportation and utilities with 3,000 more jobs than the typical seasonal increase for that sector.

The end of a one-month strike by Boeing Co. employees boosted October numbers by 900 jobs in the aerospace industry in Oregon.

Retail started its seasonal hiring with a gain of 4,400 jobs, which Ayre said "is a pretty strong start to the holiday hiring season."

Building material and garden supply stores added 500 jobs and is up 1,500 jobs, or 10.3 percent, in the past 12 months. The industry has been helped by the very strong residential construction market in recent years. The biggest loser for the month was leisure and hospitality, which declined by 6,000 in October.

Construction employment dropped only 200 jobs in October, when a loss of 500 is normal for the time of year. Seasonally adjusted employment in construction reached 93,300 in October — gaining more than 11 percent with 9,300 jobs added over a 12-month period.

Manufacturing performed in line with normal trends in October, cutting 100 jobs when a drop of 400 is expected for the time of year.

The jobless rate is down more than a full point from last October, when it stood at 7.3 percent. For the month, 100,657 Oregonians were unemployed, the lowest level since December 2000 and nearly 19 percent lower than the 124,056 without jobs in October 2004.

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On the Net:

Oregon Employment Department figures: http://www.QualityInfo.org

For help finding jobs and training resources: http://www.WorkSourceOregon.org