Oregon job gains are greatest at the top of the wage scale

Oregon’s labor market has been anemic recently, with the manufacturing, construction and hospitality sectors all struggling.

But growth was robust in one segment of the economy: Jobs paying more than $60 an hour ($125,000 a year for full-time workers).

Employment at the top of the wage scale grew by 10% last year, amounting to 36,000 more high-paying jobs, according to a recent analysis by Oregon Employment Department economist Molly Hendrickson. That growth was nearly twice as fast as in any other wage category.

Low-paying jobs, meanwhile, declined sharply during 2024. Oregon had 68,000 fewer positions paying under $15 an hour at the end of the year.

Where did all those low-paying jobs go? Most of them turned into higher-paying jobs.

Oregon’s minimum wage rises every year, pegged to inflation. The lowest legal wage varies from region to region across Oregon, based on each community’s cost of living, but the state’s standard minimum wage rose 3.2% last year to $14.70 an hour (it rose again this year, to $15.05.)

Each time the minimum wage goes up, Hendrickson said workers in low-wage categories may move up a notch — pushing wages up for those above them, too.

That’s good news for workers, as far as it goes. But some low-paying industries, like hospitality, are genuinely shrinking. That can make it hard for Oregonians to find entry-level jobs to start their careers and support their families.

Somewhat counterintuitively, job losses in higher-paying industries don’t necessarily mean lower median wages in those sectors.

Oregon’s construction sector, for example, has been shrinking since 2023. But the job losses were concentrated among lower-paying jobs, so the industry’s median wage increased by 3.3% last year after adjusting for inflation. Construction added more than 4,500 jobs paying above $60 an hour.

On balance, Oregon’s growth in high-paying jobs outweighed losses at the bottom of the pay scale. Oregon’s median hourly wage was $24.24 last year (about $50,000 a year for full-time work). That’s a 5.4% increase, nearly double the rate of inflation.

This is Oregon Insight, The Oregonian’s weekly look at the numbers behind the state’s economy. View past installments here.