ECONOMY

Unemployment rate in Salem area sees steady decline, but rates are still high

Brandon Sanders, a barista at IKE Box, wipes down the point of sale area in between customers on May 12, 2020. IKE Box re-opened last Monday. (Amanda Loman/Salem Reporter)

The Salem area economy continues to rebound as the unemployment rate dropped for the second month in a row.

Numbers released by the Oregon Employment Department put the Salem area’s unemployment rate at 10.3% for June, down from the revised rate of 13% in May. That’s a further decline from the revised rate of nearly 15% the Salem area saw in April after severe job losses caused by the coronavirus pandemic.

While the unemployment rate remains unusually high, the Salem area saw a larger than average boost in the number of jobs in June, according to the Employment Department. Salem area employers added 2,300 jobs. Marion and Polk counties were approved for phase one and allowed to start reopening businesses on May 22. As in May, leisure and hospitality saw the biggest job gains with restaurants, bars and other establishments adding 1,700 positions, a 19.5% increase from the previous month.

“It’s a little glass half full or empty,” said Patrick O’Connor, Employment Department regional economist. “It’s nice they added back 1,700 jobs, but the sector is still down almost 36% from last June.”

Food manufacturing saw increases of 400 jobs and retail added 800.

However, state government shed 1,200 jobs in June and local education jobs saw a reduction of 100 jobs.

Statewide, the June unemployment rate was 11.2%%, down from the revised rate of 14.3% in May.

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Contact reporter Jake Thomas at 503-575-1251 or [email protected] or @jakethomas2009.