Oregon Employment Department anticipates small uptick in employment under Phase 2
Published 10:00 am Saturday, June 20, 2020
- A hiring sign is taped on the front window of Nookie's Restaurant and Brewery in Hermiston on Tuesday, May 19, 2020.
PENDLETON — East Oregonians are now more likely to see “we’re hiring” signs posted in front of restaurants and retailers.
With counties moving into Phase 2, the Oregon Employment Department anticipates more jobs gains, in both Oregon and Umatilla County, as the local economy reels from COVID-19-related layoffs. Projections Economist Felicia Bechtoldt said the Oregon Employment Department anticipates Umatilla County will gain jobs in industries that were hardest-hit, such as restaurants, manufacturers and retailers.
Under Phase 2, Pendleton’s Oxford Suites and Hotels were able to hire back most, if not all, employees that were laid off. Additionally, Assistant General Manager Jay Zimmerman said they are now up to 80% occupancy, which allows the company to hire for new positions, including guest services and housekeeping.
“Essentially, we’re at the point that despite pandemic conditions we are ramping up to 80% occupancy on a regular basis,” said Zimmerman. “Before we were trying to maintain and bring everybody back, now we are looking to add to our teams.”
In May, Oregon was able to regain 22,500 nonfarm payroll jobs, and 1 out of 10 jobs were recently added back that were cut in April, according to employment department data. As of May, the unemployment rate statewide decreased from 14.9% to 14.2% and is expected to keep decreasing in the coming months.
“We anticipate the unemployment rate to decline a bit, and we anticipate some jobs that were lost to be added back, in particular leisure and hospitality,” Bechtoldt said. “That’s the quickest and largest impact to gaining some of the jobs back.”
In Oregon, besides leisure and hospitality, industries that gained jobs in May were mainly health care and social assistance. Bechtoldt anticipates a hiring surge in the coming months in construction, manufacturing, and retail and trade. As more nonessential businesses reopen, jobs in restaurants, shops, hair salons and other retailers also should become available.
This small boom is dependent on businesses either rehiring employees that were laid off or furloughed, or hiring new employees. Additionally, several small businesses received federal loans that are forgivable as long as they retain or rehire staffers.
“As far as other industries, we expect some jobs to return but it’s too early to say what the long-term impact COVID-19 will have on the local economy,” she said.
Tim Guenther, co-owner of Prodigal Son Brewery & Pub, said they have rehired half of their staff, while the remaining employees either are not coming back, have left permanently or are waiting to be rehired. He said it’s hard to bring all the employees back due to changing circumstances, but is unsure if this would directly translate to new positions in the future.
Other local businesses currently hiring include Nookies in Hermiston, Wildhorse Resort & Casino and Oregon Grain Growers Brand Distillery.
Although Oregon has seen job gains, Bechtoldt said there were still substantial job losses in the state, more specifically in government and education.
Permanent job losses — jobs that no longer exist — are going to take a long time to regain.
“I think statewide it’s going to take a long time to recover all the jobs that have been lost in the three months,” Bechtoldt said. “This is a historic loss and Oregonians are suffering the economic realities of being unemployed.”
Overall, job losses since April stand at 43,500 across the state. Umatilla County lost 3,520 jobs in one month. Leisure and hospitality, which includes hotel and restaurant jobs, lost 940 jobs. Tribal government lost 800 jobs, manufacturing lost 690 jobs, and retail and trade lost 230 jobs.
It is yet unknown if major plans are underway from the Oregon Employment Department to assist the high volume of job seekers, but Bechtoldt noted the state’s Worksource Oregon centers are ready to provide job seekers with services and additional assistance.