Salem-area unemployment remained below the statewide rate as local payrolls grew by 4,500 jobs over the past year.
Oregon’s unemployment rate held at 5.2% in June, tying California, Connecticut and Washington for the highest rate among the 50 states and standing a full percentage point above the 4.2% national average.
The statewide figure has remained at 5.2% since May and was unchanged from June 2025. Oregon’s ranking is no longer a brief departure from the norm: the Oregon Employment Department said the state’s rate began rising faster than most states in 2023 and has remained among the nation’s highest since 2025.
For Salem-area employers and workers, however, the June numbers show a stronger local labor market than the statewide figures suggest.
The Salem metropolitan statistical area, which includes Marion and Polk counties, recorded a seasonally adjusted unemployment rate of 4.9%. That was unchanged from May and slightly below the 5% rate recorded a year earlier.
Seasonally adjusted payroll employment in the Salem area increased by 1,300 jobs from May to June and by 4,500 jobs, or 2.4%, over the year. Statewide, Oregon employers cut 600 jobs in June and 8,500 jobs, or 0.4%, over the previous 12 months.
Salem’s gains were not spread evenly across the economy. Local manufacturing employment fell by 700 jobs over the year, including 500 jobs in food manufacturing. Construction lost 300 jobs. Those declines were offset by growth in transportation, warehousing and utilities, which added 2,700 jobs, and health care and social assistance, which added 800.
That pattern partly mirrors a larger shift across Oregon. Manufacturing lost 10,000 jobs statewide over the year, a 5.6% decline. Health care and social assistance added 14,000 jobs, growing 4.5%. In June alone, health care added 2,000 jobs while manufacturing lost 1,700.
Employers are still reporting hiring difficulties despite the elevated unemployment rate. Oregon private employers reported 45,378 vacancies in spring 2026, down 11% from a year earlier and slightly below comparable pre-pandemic levels. About 61% were considered difficult to fill, and the average starting wage was $26.77 an hour. Health care and social assistance accounted for 10,355 openings, nearly one-quarter of the statewide total.
The Mid-Valley workforce region, covering Linn, Marion, Polk and Yamhill counties, had about 5,700 vacancies. Statewide, there were roughly two unemployed people for every private-sector opening in April. Together, those figures suggest that occupation, experience, location and other job requirements are keeping some workers and openings from matching quickly.
The next statewide employment report is scheduled for Aug. 19. Updated county and Salem-area figures are expected Aug. 25.
