By Oregon Business and Industry
April 23, 2025
Sobering Hearing: During an April 22 informational hearing held by the Senate Committee on Labor and Business, multiple economists shared information about the struggling economy in the Portland metro area. The information echoed several of the findings in OBI’s 2024 report on Oregon’s business tax burden, which supports many of the recommendations in OBI’s Oregon Competitiveness Agenda.
ECOnorthwest presentation: Information provided by Michael Wilkerson of ECOnorthwest describes a struggling economy and a region in crisis. Portland has seen population declines, stagnant job growth, slowing housing production and a pattern of migration from Multnomah County to Clark County in Washington state. Unless conditions change to make the region more attractive to existing and potential residents, Wilkerson warned that population stagnation could lapse into population decline.
Stagnant job growth: In terms of job growth, the differences between Multnomah County and Clark County are stark. Among the 220 counties that make up the nation’s 50 largest metro areas, Multnomah County is in the bottom 5 percentile for job growth from 2019 to 2024. Clark County is in the top 80th percentile, Wilkerson reported.
Housing Slowdown: Housing development has stagnated in Oregon as well. Permitting has dropped statewide by 33% over the past 24 months, and multifamily permitting in the city of Portland is at the lowest level in over a decade. The city issued more than 3,700 multifamily permits in 2021 and a similar number in 2022. Only 856 were issued in 2024 and 332 so far this year.
State Economist: State economist Carl Riccadonna, who repeatedly has noted that Oregon is in the midst of a manufacturing recession, echoed Wilkerson. He noted that Portland’s recovery is essential to the overall condition of the state, as it accounts for a large share of the state economy. Riccadonna also warned about the economic consequences of population stagnation, pointing out that “demography is destiny.”
Takeaways: The key message shared by both Wilkerson and Riccadonna is that growth is not a given, and conditions in Oregon are cause for concern. OBI has warned policymakers about these conditions for many months and recently released lists of “job killer” bills that would make economic conditions throughout Oregon worse and “job creator” bills that would improve them. OBI is encouraged by the committee’s interest in learning more.
Learn more: Click the video to the right to listen to the presentations, and go here to read OBI’s Oregon Competitiveness Agenda. Follow the links to the right to learn more about this session’s job killers and job creators.
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