State legislators implemented the minimum wage overhaul in 2016, which includes annual adjustments tied to inflation. The new hourly minimum wage will vary across different parts of the state to account for differences in living expenses.

Following the latest adjustments, the highest minimum wage in the Portland area will be $15.95, while many counties in the Willamette Valley and Oregon coast will have a minimum wage of $14.70. The most rural parts of southern, central, and eastern Oregon will have a minimum wage of $13.70. Over the years, the minimum wage in the Portland area has increased by almost two-thirds since 2016, making it one of the highest state-mandated minimum wages in the country, after the District of Columbia, Washington, California, and New York.

However, certain cities within the Portland area have implemented even higher minimum wages. Tukwila, Washington, appears to have the highest minimum wage in the nation, standing at $20.29 for large employers.

Despite the rising minimum wage in Oregon, the percentage of workers earning the minimum has steadily declined. According to the Oregon Employment Department, this decrease can be attributed to the state's tight labor market, especially in the post-pandemic years. With most employers having to offer wages higher than the minimum to attract and retain workers, the share of workers earning the minimum wage has dropped from 7.4% in 2017 to 4.1% in the past two years.

Industries in Oregon demonstrate significant variation in terms of minimum wage workers. The retail and hospitality sectors have the highest proportion of employees earning the minimum wage, with almost 1 in 10 hospitality workers falling into this category. Many of these jobs in the hospitality sector involve positions in restaurants, bars, or other venues where tips supplement regular income. Notably, Oregon is among the nine states that have no separate minimum wage for workers who receive tips. On the other hand, manufacturing and construction have the lowest share of minimum-wage jobs, with less than 2% of workers in those sectors earning the minimum wage.

The distribution of minimum-wage jobs also varies across regions. In sparsely populated rural counties such as Sherman and Wheeler, over 10% of all jobs pay the minimum wage. In the Portland area, the share of minimum-wage jobs ranges from 3.8% in Multnomah County to 5.9% in Clackamas County. Deschutes County, despite having higher housing costs than parts of the Portland area, has the lowest share of minimum wage jobs among larger Oregon counties, at just 2.5%.

Although the cost of living has significantly risen in the Bend area over the years, there is no provision in the state's 2016 minimum wage law to reclassify a county with an increasing cost of living. Nevertheless, employers in the Bend area have already recognized the need to offer wages higher than the minimum to attract workers.

As Oregon's minimum wage continues to rise, the impact on workers and employers will remain a topic of interest. With the share of minimum-wage jobs gradually declining and regional variations becoming apparent, this ongoing evolution of the minimum wage law will shape Oregon's labor market moving forward.

For more information on Oregon's technology and the state economy, contact Mike Rogoway at mrogoway@oregonian.com.

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