Oregon Office of Economic Analysis

We have a busy week leading up to the forecast release next Tuesday, however it should also be a busy week here on the blog. There is going to be a guest post by the Oregon Department of Consumer and Business Services on workers’ compensation rates across states. DCBS recently conducted a study across all the states and will provide a summary to their work, which is important for all businesses and employers as they are required to provide workers’ comp for their employees. Also, on Thursday Eurozone and Eurozone countries’ GDP figures will be released and an update on international GDP comparisons will be posted on the blog. Furthermore, in the coming days I should have a post up on the effect of Washington’s liquor laws on sales along the border. Oregon Liquor Control Commission has been kind enough to share some data on their border store sales, as has the State of Idaho.

To keep you busy in the meantime, here is a quick update on household formation from the New York Times. The rate of household formation has been at low levels for quite a few years now so an increase is both welcomed and encouraged. A sustained uptick is and will be part of the virtuous cycle for both the construction industry and the broader economy. This cycle, effectively, is growth in jobs and/or population will lead to more demand for housing which leads to more units being built and sold/rented which leads to more income and jobs being created and the cycle begins again. Employment has been increasing for over 2 years now, albeit at a glacial pace, however we are just now beginning to see the increase in new households. The graph below (source: New York Times) shows this uptick in new households. Do read the article for more information and estimated economic impact of new households.