Oregon Loses Skilled Trade Workers to Neighboring States as High Unemployment Persists
Skilled trade workers are leaving Oregon due to high unemployment and a lack of projects. This situation is compounded by a proposed statewide moratorium on data center development, which has caused political tension. Both the governor and her opponent have called for the moratorium, despite previous support for data center growth, reflecting strong voter opposition.
Robert Camarillo, executive secretary of the Oregon Building Trades Unions, informed the House Interim Committee on Economic Development, Small Business, and Trade that his union members are departing Oregon for states like Idaho, Nevada, and California due to a severe lack of work. Oregon currently has the nation's second-highest unemployment rate at 5.2%, with trade union members experiencing double-digit unemployment, some as high as 20%.
This labor crisis coincides with growing controversy over data center development in the state. Governor Tina Kotek, who received a significant campaign contribution from IBEW Local 48 (part of the Oregon Building Trades Unions), and her Republican opponent, Christine Drazan, have both reversed their earlier positions to call for a statewide moratorium on new data center projects. This shift comes amid voter backlash over the environmental, noise, and cost impacts of data centers.
Data from the first quarter of 2026 shows a 5% decline in specialty trades employment compared to the previous year. While new construction has generally slowed, the halt in data center growth is a major contributing factor, as an IBEW report indicates that electricians' wages and overtime can constitute 45% to 70% of a data center's construction costs. A recent DHM Research survey revealed that most Oregon voters oppose new data centers and nearly 75% object to special tax breaks for these facilities. Trade unions, however, continue to advocate for more data centers to generate jobs and retain skilled workers within the state.