SALEM – The latest monthly Jobs Report released by the National Federation of Independent Business (NFIB) showed job creation weakening in February.
“Over half of Main Street firms reported hiring or trying to hire in February, but with little success,” said Bill Dunkelberg, chief economist. “Meanwhile, consistent compensation increases continue to pressure small business owners as they look for qualified workers to fill their many open positions.”
Highlights from the latest jobs report:
- 38% (seasonally adjusted) of small business owners reported job openings they could not fill in February, up three points from January and the highest reading since August 2024.
- The highest number of job openings was in retail, construction, and manufacturing, and the lowest in agriculture and finance. Construction job openings were up one point from last month but down seven points from the prior year.
- The percent of small business owners reporting labor quality as their top operating problem rose one point from January to 19%. Labor costs reported as the single most important problem for business owners rose three points from January to 12%, only one point below the highest reading of 13% in December 2021. The last time labor costs were ranked this high was February 2023.
- Seasonally adjusted, a net 33% of small business owners reported raising compensation in February, unchanged from January.
Oregon’s unemployment rate rises
Oregon’s unemployment rate was 4.4% in January and 4.3%, as revised, in December, after rising gradually over the past year from 4.1% in January 2024. Oregon’s 4.4% unemployment rate was the highest since September 2021, when the rate was also 4.4%. The U.S. unemployment rate was 4.1% in December ’24 and 4.0% in January ’25.
In January, Oregon’s seasonally adjusted nonfarm payroll employment rose by 2,400 jobs, following a revised decline of 2,000 jobs in December. January’s gains were largest in professional and business services (+1,400 jobs); leisure and hospitality (+1,200); retail trade (+900); and private educational services (+900). Declines were largest in manufacturing (-2,200) and health care and social assistance (-1,300).
