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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, 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 45.1% 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 2015 unemployment rate dropped to 5.9% but remained 0.2% higher than the state as a whole and 0.6% higher than the national average: AverageAnnualUnemployment AsaPercentofLaborForce 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. Eugene’s population growth slowed somewhat in the years following the last recession as the local economy contracted and the labor market weakened. However, population growth rebounded in 2015, increasing at the fastest rate since 2008. County, state, and federal government agencies are centered in Eugene, as well as the University of Oregon (UO) and Lane Community College. Between 2006 and 2015, employment in the educational and health services sectors increased by 23.0%. In the 2015-16 academic year, 24,125 students were enrolled at UO. The University of Oregon was ranked within the top 2.0% of U.S. research universities by the Carnegie Foundation in 2010. In fiscal year 2015, the University generated over $114.0 million in sponsored research activity and $8.0 million in licensing revenue, putting UO among top performers nationally for research institutions. The University is also a major contributor to Oregon’s economy, generating economic activity estimated at more than $2.3 billion. 3