Inflation is outpacing wages in Oregon

Published 7:00 pm Wednesday, April 6, 2022

SALEM — On paper, Oregon wages are rising rapidly. But anyone who’s been to the grocery store, gas station or brewpub recently can tell you that’s not the whole story.

The state’s average, private-sector hourly wage was $31.11 in February, according to new survey data out from the Oregon Employment Department. That’s up $1.82 from a year earlier.

But factoring in annual inflation, which was 7.9% in February, Oregon workers actually lost ground. They were effectively making less than they were a year earlier.

In Oregon, “real wages” fell by 1.6% in February. Inflation-adjusted paychecks dropped by even more rapidly nationwide, down 2.6%.

People came out of the pandemic recession with more to spend, thanks to stimulus payments and rising wages. That gave retailers the flexibility to pass along some of their higher costs to shoppers.

And it’s not just supplies that cost more — workers do, too. Oregon has more open jobs than unemployed people, forcing companies to bid up wages to bring in staff.

Those raises vary considerably across industries. Many lower-paid professions and in-demand jobs are still outpacing inflation.

Take Oregon’s hospitality sector, which was paying an average hourly wage of $20.46 in February. That’s up 4.1% from a year earlier, even after accounting for inflation.

David Cooke, statistics coordinator for the employment department, said the rising wages probably reflect the pandemic’s unique effect on hospitality jobs.

Restaurants, bars and many other attractions closed early in 2020 when the state ordered mandatory lockdowns to prevent the spread of COVID-19.

“Then when the demand and conditions returned more toward normal, many of the workers had found jobs in other industries,” Cooke said.

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