Economic outlook for Southern Oregon. Diving into how the region has fared over the Great Recession and so far in recovery. Detailed look at industries within Jackson and Josephine counties. What drives growth? What are risks to the outlook?
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SOREDI 01.30.14
1. Oregon
Southern Oregon in Recovery
January 30, 2014
Disclaimer
The views expressed in this presentation are the views of
the author and do not necessarily reflect the views of the
State of Oregon, the Governor or the Legislature.
Office of Economic Analysis
Josh Lehner
2. Oregon’s Recovery has been
Uneven but Gaining Steam
Employment by Region Over the Great
Recession
-20%
-15%
-10%
-5%
0%
Private Sector Growth in Oregon
5%
Columbia Gorge
Portland MSA
40,000
35,000
30,000
Northeast Oregon
25,000
Oregon Statewide
20,000
North Coast
15,000
Willamette Valley
Southeast Oregon
Sourthern Oregon
Central Oregon
South Coast
Recession Losses
Dec '13 Relative to Peak
10,000
5,000
0
Jan-11
Jan-12
Portland
Jan-13
All Other Oregon
Jan-14
3. Housing and Government…
Industrial Structure, 2012
25%
21.5%
20%
15.5%
16.4%
15%
10%
7.3%
7.6%
8.3%
5%
0%
Housing
Metro
Government
Oregon
Nonmetro
4. … Are Coming Back Online…
Medford Employment Growth
Year-over-Year, QCEW
15%
10%
5%
0%
Housing
-5%
Government
Other Private
-10%
-15%
-20%
-25%
-30%
Jan-07
Jan-09
Jan-11
Jan-13
5. … and Making Up Lost Ground
Private Sector Employment
Seasonally Adjusted, 3 Month Moving Average
0%
Oregon
-5%
Medford
-10%
-15%
Bend
-20%
May-07
May-09
May-11
May-13
6. Not Just in Oregon
Private Sector Growth Picking Up
Y/Y, 3MMA, QCEW
U.S.
Hardest Hit Housing Metros
AZ:
Flagstaff, Phoenix, Prescott, Tucson, Yuma
CA: Bakersfield, Chico, El
Centro, Fresno, Hanford, Los
Angeles, Madera, Merced, Modesto, Napa, O
xnard, Redding, Riverside, Sacramento, Salin
as, San Luis Obispo, Santa
Rosa, Stockton, Vallejo, Visalia, Yuba City
FL: Cape
Coral, Deltona, Jacksonville, Lakeland, Miami
, Naples, Ocala, Orlando, Palm Bay, Panama
City, Port St Lucie, Punta Gorda, Tamp
ID: Boise
MD: Hagerstown
MI: Detroit, Flint
NV: Carson City, Las Vegas, Reno
OR: Bend, Medford
UT: St George
VA: Winchester
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
Jan-07
Jan-09
Jan-11
Jan-13
7. The Housing Stall?
Single Family Housing Permits
Year-over-Year Growth
Interest Rates Slow Housing's Rebound
30%
80%
25%
60%
40%
15%
0%
Mortgage Rate -->
30 Yr Fixed
20%
20%
6%
10%
-20%
5%
-40%
5%
4%
<-- Housing Metros
Permit Growth
Differential
0%
3%
-60%
-5%
-80%
Jan-01
Jan-03
Jan-05
Housing Metros
Jan-07
Jan-09
Jan-11
US ex Housing MSAs
Jan-13
-10%
Jan-10
2%
Jan-11
Jan-12
Jan-13
7
9. Checking in on Recovery
• Industrial Diversification
• Growth pattern is
encouraging
• Housing and related will
rebound in 2014 and
2015
• Manufacturing
– Only 10-15% of locales
across U.S. have
regained manufacturing
employment
10. Quality of Jobs
High-Wage
– Management, Health
Practitioners, Legal, Computer &
Math, Arch &
Engineering, Business &
Finance, Scientists
Upper Middle
– Construction, Installation &
Repair, Protective, Arts, Design, E
ntertainment, Teachers, Communi
ty Service
Lower Middle
– Production, Admin
Support, Transportation, Health
Support, Sales
Low-Wage
– Agriculture, Building
Maintenance, Food
Prep, Personal Care
11. The Region is Resilient…
Employment Index, 2000 = 100
Southern Oregon's Employment Loss by
Recession
2%
Recession
Oregon
Southern Oregon
120
0%
% Job Loss from Peak Employment
110
-2%
100
-4%
-6%
90
-8%
80
-10%
70
-12%
Early 80s
1990
2001
Current
-14%
60
-16%
Peak
1
2
3
4
5
No. Years from Employment Peak
6
7
50
Jan-76 Jan-80 Jan-84 Jan-88 Jan-92 Jan-96 Jan-00 Jan-04 Jan-08 Jan-12
12. …But Growth Varies
Employment and the Great Recession
Job Loss Since Pre-Recession Peak
0%
-2%
-4%
-6%
-8%
-10%
-12%
-14%
Josephine
Jackson
Oregon
8
7
6
5
4
3
2
1
Peak
-16%
13. Service Growth Dominates
Employment Growth, 2001-2013
Oregon
Jackson & Josephine
Coos & Curry
Douglas & Lane
40%
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
Total Nonfarm
Total ex
Services
Professional &
Business
Education &
Health
Leisure &
Hospitality
14. As Economic Drivers Change Statewide
Wood Products, 1978
Changing of the Guard
Employment, 1976-2013*
Recession
Forest Sector
High Technology
120,000
100,000
80,000
High Technology, 2012
60,000
40,000
Jump due to more
data availability
(plus growth)
20,000
SIC to NAICS Series Break
0
1976
1981
1986
1991
1996
2001
2006
2011
16. Migration Patterns
Oregon Net Migration Patterns
Net Migration as Share of Non-Migration
Population
IRS Exemptions, 2007-08 to 2009-10
IRS Exemptions, 2007-08 to 2009-10
0.4%
0.7%
Share of Non-migrant Population
0.3%
0.6%
0.3%
0.5%
0.2%
0.4%
0.2%
0.3%
0.1%
0.2%
0.1%
0.1%
0.0%
0.0%
-0.1%
-0.1%
-0.1%
-0.2%
-0.2%
-0.3%
-0.2%
California
Washinton
Other
16
18. Why Do People Move?
Reason for Moving
Current Population Survey, 2000-13
100%
Housing: cheaper housing, other
housing, new or better
housing, want to own and not rent
90%
80%
70%
60%
Better Life: change of
climate, easier commute, health
reasons, better neighborhood
50%
40%
30%
Family Status: change in marital
status, establish own household
20%
10%
0%
All Movers
Between
States
Within State From Another
To
State
Washington
U.S.
New Job/Transfer
Family Status
Other
Housing
College
Retired
To All Other
States
Job Related: other job related, to
look for work
Oregon
Better Life
Disaster
Disaster: foreclosure or
eviction, natural disaster (Katrina)
Other Family
Job Related
18
19. Home Equity
Median Home Values
American Community Survey, 2008-12 Estimates
$0
Net Migration and Home Prices
70000
2.4
$200,000
$400,000
$600,000
San Francisco
$595,400
60000
50000
1.9
40000
Los Angeles
2
1
30000
$467,300
1.4
California
20000
10000
$383,900
0.9
0
Oregon
Medford
-10000
$246,100
$242,300
0.4
-20000
-30000
-0.1
1980
1985
1990
Net Migration (L)
1995
2000
2005
2010
CA to OR Home Price Index (R)
Grants Pass
United States
$231,800
$181,400
19
20. Economic Opportunity
Oregon Economy and Population
60000
Net Migration
Unemployment Rate Difference (CA minus OR)
5.0
50000
4.0
40000
3.0
30000
2.0
20000
1.0
10000
0.0
0
-1.0
-10000
-2.0
-20000
-3.0
-30000
-4.0
-40000
-5.0
1980
1985
1990
1995
2000
2005
2010
20
21. Demographics
Age Structure
Population Growth 2010-2025
16%
School Age
Oregon
Root Setting
Jackson
Josephine
14%
14%
12%
12%
10%
10%
8%
8%
6%
6%
4%
4%
2%
2%
0%
0%
<5
5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-59 60-64 65-74 75-84 85+
U.S.
Oregon
Jackson & Josephine
Under 20
Prime Working Age (2554)
23. Southern Oregon Outlook
Boosting Growth
• Short Term
– Housing rebound
– Migration returns
– Timber
• Long Term
– Industrial structure
– Strategic location
– Quality of life
Restraining Growth
• Short Term
– Public sector
– Replacing timber payments
– Housing stall
• Long Term
– Demographics
– Timber
– Demographics
23