Inflation has fallen, wages have risen and unemployment in Oregon is at record lows.
Yet, according to new survey results, Oregonians remain deeply concerned about the state’s economy and their own households.
According to a survey by DHM Research in August, 59 percent say they are concerned or very concerned about their personal finances. While that’s down from 65% in March, it’s still among the highest since the pandemic began.
Oregonians are no better about the future: 56% say the state’s economy is deteriorating. That’s more than double the level of pessimism reported by Oregon residents in 2019 and the highest number in six DHM surveys since.
Why are Oregonians doing so poorly when many economic indicators are showing signs of improvement?
The survey suggests that people are increasingly uncomfortable with housing and the job market.
Respondents cite homelessness and poverty as Oregon’s biggest problems by a wide margin. Linked as a single issue in the survey, almost half of respondents named them as the state’s most important – as many as the next four issues combined. Another 22% rated housing, inflation or the economy as Oregon’s biggest problem.
The Federal Reserve has helped curb inflation by raising interest rates. However, this made it more expensive to borrow money to buy a home and increased the cost of carrying credit card debt. Meanwhile, Oregon’s job vacancies continue to fall — from 107,000 in spring 2021 to fewer than 70,000 last spring.
Higher interest rates are also cooling the labor market. A year ago, a slim majority of Oregon residents told pollsters that workers have more leverage than employers in labor negotiations. Now they have a very different opinion – only 31% say they believe employees have more power.
When asked if they could cover $1,000 in emergency household expenses and still pay their rent or mortgage on time, 39% answered no. 42 percent stated that they consider their own housing situation to be unaffordable, so that rent and ancillary costs eat up more than 30% of their income.
“When people are stressed about paying their rent, feeling like they’ve lost their power in the workplace and that there are fewer good jobs, I can understand why people would conclude that the economy is in is in bad shape,” said John Horvick of the DHM.
One bright spot in the poll: Just over half of Oregon residents say this is still a good or very good time to find a job. This is unchanged compared to the previous year.
This is Oregon Insight, The Oregonian’s weekly look at the numbers behind the state’s economy. View past installments here.
— Mike Rogoway | [email protected] |
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