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Unemployment rate flat, but unexpected sectors lost jobs in December

A drone captures images of construction workers working on the preschool wall of the new Eugene Family YMCA in south Eugene.
Chambers Construction
A 2022 file photo of crews working on the Eugene Family YMCA building. Construction jobs fell off at a faster-than-normal rate to end 2025, particularly skilled labor jobs.

Oregon’s unemployment rate stayed flat at 5.2% in December, according to the latest report from the Oregon Employment Department.

The rate has remained unchanged since September.

Flat unemployment may not seem a good trend, but State Employment Economist Gail Krumenauer says it is.

"Oregon’s unemployment rate had been ticking up slightly each month throughout the year,” said Krumenauer. “So to see the unemployment rate level off is a bit more stable compared to what we saw throughout much of 2025."

The report showed a seasonally-adjusted loss of 2,200 jobs in December, with outsized losses in a handful of sectors, notably two areas that are typically strong during the month.

Both the retail trade and transportation, warehousing and utilities sectors gained 900 jobs fewer than what is considered normal for December.

Krumenauer said that was likely a sign of longer term trends, including a decrease in retail shopping as people shift to more online shopping. She also said that jobs in transportation and warehousing have stayed flat since a boom between 2020 and 2022, which was caused by a growth in online shopping during the COVID-19 pandemic.

Another area that was weaker than normal in the December job numbers was construction. December tends to be a slow season for construction in Oregon as winter rain and snow hinders outdoor work.

Normal seasonal losses due to the slowdown would be 2,900 jobs in December, but this year saw a decrease of 5,400.

Zac Ziegler joined KLCC in May 2025. He began his career in sports radio and television before moving to public media in 2011. He worked as a reporter, show producer and host at stations across Arizona before moving to Oregon. He received both his bachelors and masters degrees from Northern Arizona University.
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