Salem's job market is growing while the rest of Oregon shrinks.
The Salem metro area added 4,500 jobs over the past year, a 2.4% gain, even as Oregon employers statewide cut 8,500 positions, according to June 2026 data from the Oregon Employment Department as reported by Salem Business Journal.
The local unemployment rate held at 4.9%, below Oregon's 5.2% rate, which tied California, Connecticut, and Washington for the highest among all 50 states.
The statewide rate sat a full percentage point above the national average of 4.2%.
For Salem-area workers, the numbers show a local labor market outperforming the state as a whole. Payroll employment grew by 1,300 jobs from May to June alone.
But the gains weren't spread evenly across sectors, and residents in some industries are still feeling the squeeze.
Where the jobs are
Transportation, warehousing, and utilities drove most of Salem's growth, adding 2,700 jobs over the year. Health care and social assistance added another 800 positions, part of a statewide pattern where that sector grew 4.5% and accounted for nearly one-quarter of all job openings in Oregon.
Manufacturing moved in the opposite direction. The Salem area lost 700 manufacturing jobs over the year, including 500 in food manufacturing. Construction shed 300 jobs. Statewide, manufacturing lost 10,000 positions, a 5.6% decline.
Hiring remains difficult despite jobless numbers
Even with elevated unemployment, employers are struggling to fill positions. Oregon private employers reported about 45,400 job openings in spring 2026, down 11% from a year earlier, according to the department's Job Vacancy Survey.
About 61% of those openings were considered difficult to fill. The average starting wage was $26.77 an hour.
The Mid-Valley workforce region, covering Linn, Marion, Polk, and Yamhill counties, had roughly 5,700 vacancies. Hiring demand remained concentrated in health care and social assistance, according to the Oregon Employment Department.
Statewide, there were roughly two unemployed people for every private-sector opening in April 2026, suggesting that mismatches in skills, location, or experience are keeping workers and jobs from connecting.
Budget context
The job growth arrives as Salem works to stabilize its finances. The City Council adopted an $824.6 million budget for fiscal year 2027 on June 22, passing 6-0.
City Manager Krishna Namburi described the spending plan as "meaningful progress in stabilizing our financial position" when presenting it to the council that month, crediting in part the voter-approved 2025 Livability Levy.
That budget followed a December 2024 forecast that projected an approximately $18 million General Fund shortfall for fiscal year 2026, driven by rising employee costs. The Oregon Employment Department noted that the state's unemployment rate began rising faster than most states in 2023 and has remained among the nation's highest since 2025.
What's next
The next statewide employment report is scheduled for Wednesday, Aug. 19. Updated county and Salem-area figures are expected Tuesday, Aug. 25.
