Snail-Paced Employment Growth Has Oregon Worried
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
By 2008, the state of Oregon had witnessed tremendous job losses and sadly, the situation is still bad seven years later. With worsening debt, high personal income and property taxes, and snail-paced employment growth, Oregon is among the most economically troubled states in the US.
By 2008, the state of Oregon had witnessed tremendous job losses and sadly, the situation is still bad seven years later. With worsening debt, high personal income and property taxes, and snail-paced employment growth, Oregon is among the most economically troubled states in the US.
Table of Contents
Oregon Awaits a Change of Fortune
Several economic reports have been severe on Oregon and have regarded it as one of the worst states in the US for small businesses. A report released by Small Business Policy Index, after analyzing several economic and financial parameters such as taxes in the state, government’s regulations for businesses, government spending, and debt situation, has termed Oregon as the 6th worst states in the US.
Thumbtack chief economist John Lieber remarked how the Oregon government badly needed to undertake serious efforts for facilitating a better business environment for startups and growing firms.
Individual capital gain taxes and personal income taxes in Oregon are among the highest in the nation, and that is dissuading entrepreneurs from setting up firms. Property tax in Oregon is also a serious burden on the residents, made worse because property costs are almost 25% higher than the national average.
Oregon is also in the list of highest household debt, with an average more than 93% debt relative to annual household income. Further, Oregon has a large number of recently graduated individuals who are weighed down by educational debt and simultaneously hunting for few job opportunities.
Unemployment Woes
Oregon has not performed as well as other American states in terms of recovering from the ravages of the recession of 2008. In fact, the number of Oregon residents getting back to full and decent employment after the recession is among the lowest for all states.
The current employment rate stands at 4.5% less than what it was post-recession in 2007. This is in stark comparison to other US states that are recording job growth above post-recession levels such Texas, North Dakota, Oklahoma, and Florida.
Best in the West?
Unemployment ended 2014 at 7%, just below their historical average. Not only has the state lost some important employment pools, such as forestry, but has also dealt with an influx of residents from other states and not contributing enough to the tax base. In 2013, Oregon gained almost 25,000 new residents, not all of whom found employment. Oregon, however, is performing better relative to its neighbors California and Washington.
