Agenda Packet 12-10-18 Meeting - Laserfiche WebLink

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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, 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 45.3% 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 6.7% in 2008 to a high of 12.3% in 2009, primarily due to job losses in the metropolitan area in recreational vehicle manufacturing, wood products and high-tech manufacturing. Eugene’s 2017 unemployment rate dropped to 4.5% but remained 0.4% higher than the state as a whole and 0.1% above the national average. 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-migration has bolstered the area’s population growth over the past decade. The University of Oregon, available health care and abundant outdoor recreation amenities make Eugene a favorable place to live. California has been the largest source of new residents to the area due to Eugene’s proximity, natural and cultural amenities, and relatively lower 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 has rebounded in the last two years, increasing by rates above the ten-year average. County, state, and federal government agencies are centered in Eugene, as well as the University of Oregon (UO) and Lane Community College. Between 2008 and 2017, employment in the educational and health services sectors increased by 19.2%. In the 2017-18 academic year, 22,980 students were enrolled at UO. During fiscal year 2017, the University generated $114.9 million in sponsored research activity and $8.9 million in licensing revenue, putting UO among top performers nationally for research institutions. Innovation and discoveries at UO also translate into private sector growth. In 2016, UO research helped generate $44.5 million in company income and 243 startup jobs. The University is also a major contributor to Oregon’s economy, generating economic activity estimated at more than $2.3 billion. 3 December 10, 2018, Meeting - Item 2D