Oregon Economy
Oregon has one of the fastest growing economies in the nation. With important and growing industries in manufacturing, apparel, and green technologies, Oregon has a solid base in vital markets that will continue to enrich the economy moving forward.

Per capita GDP

Oregons per capita GDP, adjusted for inflation, has been growing fairly consistentlyand more quickly than both Washington and the U.S.-- over the past 15 years. If this trend continues, Oregon may even pass Washingtons per capita GDP in the future.
GDP Growth

Real GDP growth in Oregon has been quite volatile, but, in all but the worst of the 2009 recession, GDP growth has remained positive. It has also generally exceeded Washington and the U.S.s GDP growth rates. Ensuring a strong Oregon economy in the future is crucial to continuing this remarkable pattern of growth.
Household income

Oregons median household income, adjusted for inflation, has remained relatively steady over the past 15 years and has only recently exceeded the USs real median household income. However, Oregon still trails Washington in this statistic.
Oregon Employment
Oregon's unemployment rate is one of the highest in the country; one of Oregons biggest problems right now is that so many of its workers are out of work. However, overall unemployment has been slowly decreasing, and it is important to see where jobs are located in the economy and what industries have the highest potential for employment growth.

Unemployment

Oregons unemployment rate has been consistently higher than both the U.S. and Washingtons unemployment rates over the past decade. Helping businesses create new jobs is a crucial goal to decrease Oregons unemployment.
Top 5 Industries for Oregon Employment

Oregon has many different industries driving its vibrant economy. Many Oregon jobs are within the healthcare and retail industries, but manufacturing, government, and food and lodging are also crucial for keeping Oregonians employed. Beyond these top-5 industries, many Oregonians are also employed in the production and distribution of durable goods as well as with financial-related occupations.
Oregon employment by business size

More than half of Oregons workers are employed by companies with fewer than 100 employees, and over a quarter are employed by companies with fewer than 20 employees. As policymakers continue to adjust employment regulations, it is important to consider the many small businesses that employ the majority of Oregonians.
Oregon Exports
Exports have always been a crucial sector of the Oregon economy. Although recently major exports have shifted from logging and forestry to high tech manufacturing and related industries, exports still remain an important component of the Oregon economy and play an important role in both Oregons GDP and its employment.

Export Employment

Oregons employment is helped by its stronger-than-average export market. While Washington exports account for a larger percentage of jobs than in Oregons exports do, Oregon still has a larger portion of jobs associated with exports than California and the US as a whole.
Oregon Exports by Sector

Oregons export industry is particularly strong in computers and electronics manufacturing, and agriculture also plays an important role.
Key Sectors


Leadership Summit to Explore Oregon’s Budget

The 2016 Oregon Business Plan Leadership Summit will focus on Oregon’s unstable fiscal foundation and the challenge the 2017 Legislature faces as it attempts to craft a budget for the 2017-19 biennium.

Considering that few states have recovered from the Great Recession as well as Oregon has, it is counter-intuitive that balancing the budget would be a towering task for legislators. But income just addresses one side of a balance sheet, and the state’s expenses are growing even faster than its tax collections.

State revenues at the end of 2015 were 16% higher than at the peak of the recession in the fourth quarter of 2008. Personal income tax revenues were up 15.2% in 2013-2015 over 2011-2013 and corporate income tax revenues were up 26.3% over the same period.

Yet, the state still is expected to fall about $1.4 billion short of revenues needed to maintain current service levels during the next biennium. There are multiple reasons for the shortfall, but two stand out: Public pension and Medicaid costs are soaring.

Schools, cities, state agencies and other public employers will see a 44% increase in their obligations to the Public Employees Retirement System (PERS), from $2 billion to $2.885 billion, according to forecasts. Unless they can reduce PERS payments or increase revenues by a similar amount, they will have to make cuts in other areas of their budgets.

Medicaid costs also are likely to increase sharply. Oregon added more than 40,000 Oregonians to Medicaid in recent years, with the federal government covering much of the cost. Even before the election, Oregon was scheduled to assume part of those costs. President-Elect Donald Trump’s pledge to overhaul health care changes enacted through the Affordable Care Act raises the possibility of other additional costs.

The Legislature will have to make cuts that erase recent gains in health care and education, reduce PERS costs, raise revenues or reach a compromise that incorporates some combination of those actions.

Addressing this challenge is crucial to Oregon’s economy. Without a stable fiscal foundation, the state will not be able to make the key investments needed to improve early learning opportunities, boost high school graduation rate, and make college more affordable.

Plan to attend the Leadership Summit December 5, 2016 at the Oregon Convention Center to participate in this important conversation. For more information, including online registration, click here.