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Local Economy Eugene is located in western Oregon, in the southern Willamette Valley, in close proximity to the Pacific Ocean and the Cascade Mountain Range. Citizens and visitors enjoy the mild climate, recreation and fitness opportunities, and the diverse cultural events it has to offer. Interstate 5 connects Eugene to the Portland metropolitan area and Washington state to the north, and California to the south. State highways provide access to the Cascade Mountains and the recreational opportunities of eastern Oregon, and to the picturesque coastal towns, state parks and public beaches to the west. Eugene’s municipal airport is serviced by five air carriers: Alaska Airlines, Allegiant, American Airlines, Delta, and United Airlines. Commercial air service links Eugene directly to Denver, Honolulu, Las Vegas, Los Angeles, Oakland, Phoenix/Mesa, Portland, Salt Lake City, San Francisco, San Jose and Seattle. Eugene is the largest city in Lane County and the second largest city in Oregon, representing 44.8% of the county’s and 4.1% of the state’s population. Eugene’s economy typically follows the trends of the state and national economies. The unemployment rate in the Eugene-Springfield Metropolitan Statistical Area (MSA) rose sharply as a result of the recession, from an average annual rate of 5.2% in 2007 to a high of 12.3% in 2009, primarily due to job losses from closure of the City’s largest private employer, Hynix, as well as other job losses in construction, manufacturing, retail, and professional services. Eugene’s 2014 unemployment rate dropped to 7.1%, which is still high by historic standards, and 0.9% higher than the national average: AverageAnnualUnemployment AsaPercentofLaborForce ЊЌ͵Љ ЊЊ͵Љ tĻƩĭĻƓƷ В͵Љ А͵Љ Ў͵Љ Ќ͵Љ ЊВВЉЊВВЊЊВВЋЊВВЌЊВВЍЊВВЎЊВВЏЊВВАЊВВБЊВВВЋЉЉЉЋЉЉЊЋЉЉЋЋЉЉЌЋЉЉЍЋЉЉЎЋЉЉЏЋЉЉАЋЉЉБЋЉЉВЋЉЊЉЋЉЊЊЋЉЊЋЋЉЊЌЋЉЊЍ 9ǒŭĻƓĻ{ƦƩźƓŭŅźĻƌķhƩĻŭƚƓ ͵{͵ The two pillars that have historically provided relative stability in Eugene’s economy are the large public sector employment base and population in-migration. In prior years, the influx of new residents has helped the economy diversify away from lumber and wood products manufacturing. California has been the largest source of new residents to the area due to Eugene’s proximity to that state, local environmental and cultural amenities, and relatively low cost of living. However, Eugene’s population growth has slowed down somewhat in recent years as a result of the recession and resulting high unemployment rate. While historical population growth rate has been approximately 1.0%, in the last four years for which population data are available (2012 through 2015), the growth rate has averaged 0.7%. County, state, and federal government agencies are centered in Eugene, as well as the University of Oregon and Lane Community College. Between 2005 and 2014, employment in the government, education and health services sectors increased by 10.6%, largely due to growth of the University of Oregon. In the 2014-15 academic year the University of Oregon had an enrollment of 24,181 students. The University of Oregon was also ranked within the top 2% of U.S. research universities by the Carnegie Foundation in 2010. In fiscal year 2014, the University generated over $110 million in sponsored research activity and $7 million in licensing revenue, putting UO among top performers nationally for research institutions. The University is a major contributor to Oregon’s economy, generating economic activity estimated at more than $2.0 billion. 3