Analyzing demographic and economic trends across rural Oregon and rural America at large. Topics include educational attainment, employment, industrial structure, labor force participation, migration, population and the quality of jobs.
2. 2
Oregon Office of Economic Analysis
Oregon’s Nonmetropolitan Areas
U.S. Bureau of Labor
Statistics’ Regions
Oregon Office of Economic
Analysis’ Regions
Prior to 2011, Eastern Oregon Nonmetropolitan Area
consisted of Eastern and North Central
3. 3
Oregon Office of Economic Analysis
Rural America is Recovering
Slower than Metros
4. 4
Oregon Office of Economic Analysis
Rural Oregon is No Exception
-10%
-8%
-6%
-4%
-2%
0%
2%
07 09 11 13 15
Oregon and the Great Recession
Employment Change From Peak
Urban Oregon
Rural Oregon
Data: Seasonally-Adjusted, 3 Month Average, Latest data point: June 2015
Source: Oregon Employment Department, Oregon Office of Economic Analysis
5. 5
Oregon Office of Economic Analysis
Partly Due to Less Diverse Economies
Bigger cities have more
diverse economies
(advertising firms,
ballet dancers, etc).
Less industrial
diversification not
necessarily bad. In good
times for your region’s
specialty, economy
really grows. In bad
times, your local
economy really suffers
however.
E.g. Rural Oregon with
timber in 1960s and
1970s. North Dakota
with oil and gas in
2000s.
6. 6
Oregon Office of Economic Analysis
Exposure to Housing and
Government Extremely High
Rural Oregon economies had
37% of payroll tied directly
to housing and government
prior to the Great Recession.
The two biggest drags
following the Great
Recession where housing
and government.
As migration flows return, so
too is the housing industry.
Public sector is stabilized
and adding jobs in select
locations. Not Curry or
Josephine however.
9.8%
15.5%
10.3%
16.5%
12.7%
24.6%
0%
5%
10%
15%
20%
25%
30%
Housing Government
Housing and Government in Oregon
Share of Local Payroll, 2007
Urban Oregon Rural
Housing = Construction, Wood Product Manufacturing, Furniture Stores, Building Material and Garden Supply Store,
Real Estate | Data: 2007 QCEW | Source: Oregon Employment Department, Oregon Office of Economic Analysis
7. 7
Oregon Office of Economic Analysis
Good News: Job Growth Has
Returned, but…
8. 8
Oregon Office of Economic Analysis
…Only the Gorge is Fully
Recovered, and…
10. 10
Oregon Office of Economic Analysis
Key Issue: Demographics
• Significant Baby
Boomer
population in
Rural Oregon
• Few in root
setting years
when people
settle down, start
their careers in
earnest, get
married, buy a
house and start a
family0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0 10 20 30 40 50 60 70 80
Age Group
Oregon Population by Age, 2015
Source: Oregon Office of Economic Analysis
Rural Oregon
Urban Oregon
Root Setting
Years, 25-34
11. 11
Oregon Office of Economic Analysis
Participation Drops with Age
• Rural counties
tend to be
older, have
lower
participation
rates
• Impacts
productive
capacity of
regional
economy
Clatsop
Coos
Crook
Curry
Douglas
Gilliam
Grant
Harney
Hood River
Jefferson
Klamath
Lake
Lincoln
Malheur
Morrow
Sherman
Tillamook
Umatilla
Union
Wallowa
Wasco
Wheeler
Benton
Clackamas
Columbia
Deschutes
Jackson
Josephine
Lane
Linn
Multnomah
Polk
Washington
Yamhill
U.S.
OR
45%
50%
55%
60%
65%
70%
75%
10% 15% 20% 25% 30% 35% 40%
LaborForceParticipationRate
Share of Population 65 Years and Older
Rural Oregon
Urban Oregon
Data: 2013 ACS, 5 Year Estimates | Source: Census, Oregon Office of Economic Analysis
12. 12
Oregon Office of Economic Analysis
Potential Growth Likely Shrinking
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
U.S. Oregon U.S. Oregon Gorge NE SE S.
Coast
N.
Coast
Metros Rural Rural Oregon
Rural Labor Force Shrinking
Change from 2007 to 2014
Source: BLS, Oregon Employment Department, Oregon Office of Economci Analysis
13. 13
Oregon Office of Economic Analysis
However, Influx of Migrants is Strong
• The Timber
Belt suffered an
economic
collapse and
restructuring
just as severe
as the Rust Belt
• Households
moved away
from the Rust
Belt in search
of jobs
• Households
keep moving
into the Timber
Belt
14. 14
Oregon Office of Economic Analysis
…To Nearly All Oregon Counties…
Baker
Benton Clackamas
Clatsop
Columbia
Coos
Crook
Curry
Deschutes
Douglas
Gilliam
Grant
Harney
Hood River
Jackson
Jefferson
Josephine
Klamath
Lake
Lane
Lincoln
Linn
Malheur
Marion
Morrow
Multnomah
PolkSherman
Tillamook
Umatilla
Union
Wallowa
Wasco
Washington
Wheeler
Yamhill
-15
-10
-5
0
5
10
15
20
25
-15 -10 -5 0 5 10 15 20 25
NetMigrationfromOtherStates
Net Migration from Other Areas in Oregon
Net Migration of Tax Filers:
Number per 1,000 Tax Returns, 1995-2011
Losses to other
states and
other Oregon
counties
Losses to
Oregon
counties
outstrip gains
from other
states
Gains from
other states
outstrip losses
to Oregon
counties
Gains from
Oregon
counties
outstrip
losses to
other
states
Gains from
other
states and
other
Oregon
counties
Losses to
other states
outstrip gains
from Oregon
counties
15. 15
Oregon Office of Economic Analysis
…But Different Type of Migrant
Gaining experienced and some wealthy households, losing working age
families on net
0%
2%
4%
6%
8%
10%
12%
14%
16%
Health Care Cash
Contributions
ShareofTotalExpenditures
Older Households Spend More On
Health and Cash Contributions
55-64
65-74
75+
Source: BLS, Consumer Expenditure Survey
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
Expenditures Wealth
Household Finances for Top Half of
the Income Distribution
50-64
65-74
75-84
85+
Source: Employee Benefit Research Institute
16. 16
Oregon Office of Economic Analysis
Important Forward Looking Indicator
Looks OK for Rural Oregon
33.1% 32.5%
18.7% 18.6%
24.7%
21.8%
18.3% 17.6% 17.5%
0%
10%
20%
30%
40%
Oregon U.S. Oregon U.S. Gorge North
Coast
South-
east
North-
east
South
Coast
Metro Rural Rural Oregon
Educational Attainment
25-64 Years Old, Share with Bachelor's Degree or Higher
Data: 2013 ACS, 5 Year Estimates | Source: Census, USDA, Oregon Office of Economic Analysis
• Gorge and N.
Coast rank
among best
rural areas in
entire country
• Rest of Rural
Oregon right
around the
average yet
above the
typical area
(above the
median)
17. 17
Oregon Office of Economic Analysis
Quality of Jobs in Rural Oregon
Rural job
growth slower
than metros
Middle-wage
jobs lacking
everywhere
High-wage
jobs stronger
in rural
Oregon than
rural America
over past
decade
18. 18
Oregon Office of Economic Analysis
Occupational Mix is Solid
• Good overall mix
between high-, middle-
and low-wage jobs
relative to rural America
• Strong concentrations in
scientists (foresters and
related) and agriculture
(includes fishing and
timber)
• Ag nationwide is low-wage
work, however on coast
and in southern Oregon it
is much better paying
• Lower on architecture/
engineering, computer/
math and production
occupations
This is combined Coastal, Eastern and N.
Central nonmetropolitan areas
19. 19
Oregon Office of Economic Analysis
Rural Oregon is Good Place to
Grow Up
• Eastern Oregon areas
among top third of all
U.S. for economic
mobility
• 700+ areas
• La Grande and Ontario
are typical
• Southern Oregon
below average, most
likely due to timing of
research which follows
children born in early
80s
• Worst possible time to
start the clock on
southern Oregon due
to timber industry
20. 20
Oregon Office of Economic Analysis
Pockets of Strength
While Broad Prosperity is Lacking, Not All Hope is Lost
• On the coast, dairy, fishing and tourism are strong
• In the gorge, beer, drones and fruit are doing well
• Out east, manufacturing expanding, wheat harvests
have been good and Morrow is booming
• Down south, timber industry is adding some jobs
and migration flows are returning