Economy of Oregon facts for kids
The Oregon State version of the U.S. Quarter features Crater Lake.
|
|
| Statistics | |
|---|---|
| GDP | $331 billion (2024) |
|
GDP per capita
|
$70,685 (2024) |
|
Population below poverty line
|
15.5% (2008-2012) |
| 0.4586 | |
|
Labor force
|
2,204,277 (May 2025) |
| Unemployment | 4.7% (April 2025) |
| Public finances | |
| Revenues | $7,475.135 million |
| Expenses | $5,889 million |
The economy of Oregon is how people in the state make and spend money. For a long time, Oregon's economy relied on things like natural resources, such as timber and fishing. But over the past few decades, Oregon has worked to change its economy. Now, it includes many different types of jobs, like making things (manufacturing), providing services, and working with advanced technology.
In the 1980s, industries like timber, fishing, and farming faced challenges. To help, the state government encouraged new types of businesses. This led to a big increase in technology jobs, especially around Portland, Oregon. However, some smaller towns didn't see as much growth. In the early 2000s, the technology industry faced a downturn, and Oregon lost many jobs. Later, from 2004 to 2007, the economy grew again, with many new jobs in building and service industries.
In 2024, the total value of all goods and services produced in Oregon, called its gross state product, was about $331 billion. This made it the 25th largest economy among U.S. states. In 2021, the average income per person was $59,484. As of April 2025, about 4.7% of people looking for work in Oregon did not have a job.
Contents
Oregon's Economic History
Oregon's economy began with the fur trade. In the 1840s, new settlers started farms, especially in the fertile Willamette Valley and around Portland, Oregon. When gold was discovered in eastern Oregon in the 1860s, places like Baker and Grant counties grew. Portland became a key shipping center, especially for wheat. The arrival of the railroad helped Portland become the main economic hub. Later, logging and salmon fishing also became very important.
During World War I, Oregon's shipbuilding and timber industries grew quickly, especially in Portland. In the 1930s, government programs like the New Deal built many projects. These included the Timberline Lodge on Mt. Hood and several dams on Oregon's rivers. The Bonneville Dam, finished in 1937, provided cheap electricity. This power helped new industries, like aluminum plants in places such as Albany, to grow. Oregon's resources, like power, food, and lumber, helped the western U.S. develop. During World War II, the state's food production, shipbuilding, and lumber industries expanded even more.
Oregon's Exports
Many jobs in Oregon depend on selling goods to other countries, which are called exports. In 2023, Oregon exported goods worth $27.7 billion. More than $12.9 billion of these exports went to countries in Asia. The main countries that bought Oregon's products in 2023 included Mexico, China, and Canada. Oregon's top exports were computer and electronic products, transportation equipment, and various types of machinery.
Key Economic Sectors
Agriculture and Farming
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Oregon's different landscapes are perfect for many kinds of farming. The Willamette Valley has very rich soil because of ancient floods, called the Missoula Floods. These floods left behind fertile dirt from a huge lake in Montana. For example, in 2016, the Willamette Valley grew over 100 million pounds of blueberries. The Oregon Department of Agriculture helps manage and support farming in the state.
Oregon is also a major place for growing hazelnuts, producing 95% of all hazelnuts in the United States. Wine making in Oregon has a long history, but it really grew into a big industry starting in the 1970s. By 2005, Oregon had 303 wineries, ranking third in the U.S. The climate and soil in Oregon are similar to famous wine regions in France, like Alsace and Burgundy. This means Oregon grows many of the same types of grapes. The state now has 676 wineries.
Along the southern Oregon coast, farmers grow many cranberries. These cranberries make up about 7% of all U.S. production. Cranberry farms cover about 27,000 acres in Coos and Curry counties, especially near Bandon. In northeastern Oregon, around Pendleton, farmers grow a lot of wheat. Oregon farmers also raise cattle and sheep, and produce dairy products, eggs, and poultry (like chickens).
Oregon also grows berries like blackberries and raspberries. Sometimes, plant diseases can affect these crops. For example, a disease called Phytophthora ramorum was found in the 1990s. It can harm berries like cranberries and blueberries, which is a concern for farmers. Peaches and nectarines grown in the Willamette Valley are often sold directly to people nearby. Experts at OSU Extension suggest specific types of peaches and nectarines that grow well in the Willamette Valley.
In 2022, the Emerald ash borer insect was found in Forest Grove, Oregon. This insect can cause a lot of damage to ash trees. State departments quickly started a plan to deal with this problem. The public is asked to report any sightings of this insect to the Oregon Department of Agriculture.
Forestry and Fisheries
Oregon has huge forests, which historically made it a top state for producing timber and logging. However, forest fires, too much harvesting, and legal issues about managing federal forests have reduced the amount of timber produced. From 1989 to 2011, timber harvested from federal lands in Oregon dropped by about 90%.
Even with changes towards making finished products like paper, the timber industry has slowed down. This has led to higher unemployment in rural areas. Despite these changes, Oregon still leads the United States in producing softwood lumber. In 2011, Oregon produced 4.1 billion board feet of lumber.
Oregon also has one of the largest salmon-fishing industries in the world. However, ocean fishing has reduced the amount of salmon caught in rivers. Because Oregon has so many rivers, it is also a major producer of hydroelectric energy, which is electricity made from moving water.
Minerals and Geothermal Energy
While Oregon isn't known for gold rushes like some other states, it still has valuable resources hidden beneath the surface.
The most common minerals found in Oregon are things like sand, gravel, and crushed rock. These might not sound as exciting as diamonds, but they are super important for building roads, bridges, and buildings! Other minerals include nickel, pumice (a light, airy rock from volcanoes), and diatomite (used in filters).
Oregon is part of the "Ring of Fire," a chain of volcanoes around the Pacific Ocean. This means there's a lot of heat deep underground! Geothermal energy is a way to use this natural heat from the Earth to generate electricity or warm buildings. It's another clean and renewable energy source that Oregon is exploring.
Tourism and Entertainment
Tourism is a strong industry in Oregon. Visitors come to see the state's beautiful natural places. These include mountains, forests, waterfalls, rivers, beaches, and lakes. Popular spots are Crater Lake National Park, Multnomah Falls, the Painted Hills, and the Oregon Caves. Mount Hood and Mount Bachelor also attract people year-round for skiing and other snow activities.
Portland has the Oregon Museum of Science and Industry, the Portland Art Museum, and the Oregon Zoo. The zoo is the oldest west of the Mississippi River. The International Rose Test Garden is another popular place in the city. Portland is also known for its amazing street food and has many breweries, more than any other city in the world.
The Oregon coast also attracts many tourists. The Oregon Coast Aquarium in Newport is a large aquarium that was once home to Keiko the orca whale. It is considered one of the best aquariums in North America. Fort Clatsop in Warrenton has a replica of the camp where Lewis and Clark stayed in 1805. The Sea Lion Caves in Florence are the largest system of sea caverns in the U.S.
In Southern Oregon, the Oregon Shakespeare Festival in Ashland is a big draw. Other interesting places include the Oregon Vortex and the Wolf Creek Inn State Heritage Site.
Oregon has also been a popular place for filming movies because of its varied landscapes and its closeness to Hollywood. Many famous movies were filmed in Oregon, such as The Goonies, Free Willy, and Kindergarten Cop. Matt Groening, who created The Simpsons, is from Portland and has included many references to his hometown in the show. The Oregon Film Museum is in Astoria. Also, the very last Blockbuster video store in the world is located in Bend.
Technology and Innovation
High technology industries, often called the Silicon Forest, have been a major source of jobs since the 1970s. Tektronix was once Oregon's largest private employer. Later, Intel built and expanded several facilities in Washington County, continuing this growth. Intel is now the state's largest for-profit private employer, with large facilities in Hillsboro.
Many new companies started from Tektronix and Intel, creating the "Silicon Forest." In the early 2000s, the technology industry faced a downturn, and many tech companies reduced staff or closed. In 2004, Open Source Development Labs hired Linus Torvalds, who created the Linux kernel. In 2010, the biotechnology company Genentech opened a large facility in Hillsboro.
Oregon is also home to several large data centers. These centers use cheap electricity and a cool climate to save on cooling costs. Google has a large data center in The Dalles. Facebook built a big data center near Prineville in 2010. Amazon opened a data center near Boardman in 2011 and a fulfillment center in Troutdale in 2018.
Healthcare Services
Oregon's healthcare system includes many hospitals and insurance providers. In 2018, Cambia Health Solutions had the largest share of the health insurance market. Other major providers include Providence Health and Kaiser Permanente. Providence and Kaiser both run hospitals and offer insurance plans.
Other important hospital systems in Oregon include Legacy Health in Portland, Samaritan Health Services with five hospitals across the state, and Tuality Healthcare in the Portland area. In Southern Oregon, Asante operates several hospitals. Some hospitals are part of larger organizations like PeaceHealth and CommonSpirit Health, while others, like Salem Hospital, operate independently.
Oregon Health & Science University in Portland is a medical school that also runs two hospitals and clinics. The Oregon Health Plan is the state's health insurance program for people with lower incomes, known for its new ideas in healthcare.
Taxes and State Budget
Oregon's state budget, which covers two years, includes money from general funds, federal funds, lottery funds, and other sources. In 2025, the state's revenue was about $7.4 billion, and its expenses were about $5.8 billion.
Oregon is one of only five states in the U.S. that does not have a sales tax. Oregon voters have always voted against proposals for a sales tax. Because there is no sales tax, the state relies on property and income taxes for its money. Oregon has one of the higher personal income taxes in the nation.
Some local governments do collect sales taxes on services. For example, the city of Ashland collects a 5% sales tax on prepared food. The City of Portland also has an Arts Education and Access Income Tax. This is a $35 tax for adults who earn enough money, and it helps fund school teachers and art groups in Portland.
Oregon also allows transit districts to collect an income tax from employers and self-employed individuals. The state currently collects this tax for TriMet and the Lane Transit District.
Oregon has a special "kicker law." This law says that if the state collects much more income tax than expected, the extra money must be returned to taxpayers. Since this law started in 1979, refunds have been given out many times.
Federal payments to county governments, which replaced timber revenue when logging was restricted, are very important for rural counties. These payments help them provide essential services.
About 55% of state revenues are spent on public education. Another 23% goes to human services, like child protective services and Medicaid. Public safety receives 17% of the budget, and 5% is used for other services.
Major Corporate Headquarters
Oregon is home to the headquarters of many large companies. The world headquarters of Nike is located near Beaverton. Medford is home to Harry and David, which sells gift items. Medford also has the national headquarters of Lithia Motors. Portland is home to Graphic Arts Center Publishing, one of the largest book publishers in the West. Mentor Graphics Corporation, a leader in electronic design, is located in Wilsonville.
Adidas Corporations American Headquarters is in Portland. Nike, in Beaverton, employs about 5,000 people at its 200-acre campus. Nike's campus is often ranked as a top employer in the Portland area. Intel employs 22,000 people in Oregon, mostly at its Hillsboro campus. Intel has been a top employer in Oregon since 1974.
| # | Corporation | Headquarters | Market cap (billions US$) |
|---|---|---|---|
| 1. | Nike | Beaverton | 91.35 |
| 2. | FLIR Systems | Wilsonville | 4.77 |
| 3. | Portland General Electric | Portland | 4.05 |
| 4. | Columbia Sportswear | Beaverton | 4.03 |
| 5. | Umpqua Holdings Corporation | Portland | 3.68 |
| 6. | Lithia Motors | Medford | 2.06 |
| 7. | Northwest Natural Gas | Portland | 1.7 |
| 8. | The Greenbrier Companies | Lake Oswego | 1.25 |
The U.S. Federal Government and Providence Health systems are also major employers in Oregon.
Companies based in Oregon that are listed in the Fortune 1000 (a list of the largest U.S. companies by revenue) include Nike, Lithia Motors, The Greenbrier Companies, Portland General Electric, Columbia Sportswear, Radius Recycling, and KinderCare Learning Centers.
See also
- List of power stations in Oregon
- History of Oregon
- Oregon § Economy
