BEACON ECONOMIC REPORT

NEWPORT, Ore. — Lincoln County on Oregon’s central coast is contending with economic headwinds as declines in its longstanding timber and commercial fishing sectors contribute to elevated unemployment and sluggish job growth, recent state data shows.

The county’s seasonally adjusted unemployment rate stood at 6.1% in November 2025, up from 6.0% in September and from 5.2% a year prior. This figure outpaces Oregon’s statewide rate of 5.2% and the U.S. average of approximately 4.6%. Nonfarm employment dipped by 50 jobs in November to around 19,650, with 1,193 residents unemployed.

The timber industry, once a cornerstone of the local economy, has contracted significantly. Western Cascade Industries closed its lumber mill in Toledo at the end of July 2024, resulting in about 50 layoffs. This marked the seventh mill closure in Oregon that year, amid broader industry struggles including reduced log supplies and a downturn in lumber markets.

Commercial fishing, vital to ports like Newport, also faced setbacks. Oregon’s onshore landings totaled 263 million pounds valued at $182 million in 2024, down in volume from 301 million pounds in 2023 but holding steady in inflation-adjusted value. These figures fell below the 2019-2023 averages of 317 million pounds and $188 million. Lincoln County contributes substantially to the sector, with historical data showing fishing accounted for over 14% of earned income in 2019 and generated up to $346 million in total economic impact including recreation.

The commercial Dungeness crab fishery opened in December 2025, with segments starting Dec. 16 south of Cape Falcon and Dec. 31 to the north. Average annual landings over the past 20 years have been 18.4 million pounds for Dungeness crab alone, valued at $49.7 million.

Despite these challenges, a silver lining remains in tourism, which injects significant revenue through attractions such as the Oregon Coast Aquarium and marine research at Oregon State University’s Hatfield Marine Science Center.

Statewide, Oregon’s economy experienced slower growth in 2025 but is projected to stabilize or accelerate moderately in 2026, buoyed by potential interest rate cuts.

Governor Tina Kotek unveiled her “Prosperity Roadmap” in December 2025, outlining strategies to retain businesses, create jobs, and boost growth through partnerships and policies, including appointing a Chief Prosperity Officer and forming a Prosperity Council.

Oregon led the nation in inbound out-of-state movers in 2025, potentially aiding recovery, though overall population growth is forecasted at a modest 0.34% for 2026.