Oregon’s open beaches, rugged mountains and vine-covered hillsides make it a popular destination for travelers. But Oregon has another reason for attracting nearly 125,000 out-of-state visitors in 2019. it’s work.
About 7% of people who live in Oregon have homes in other states. Not surprisingly for someone driving the bridge over the Columbia River during rush hour, nearly five of these nonresident workers, four of which are from Washington state.
Traveling in the other direction are Oregonians migrating to work for employers in other states. In 2019, approximately 66,000 people lived and worked outside of Oregon. This brings the net influx of about 59,000 workers to Oregon, up from a net influx of 57,000 in 2018. Workers crossing state lines affect the economy in many ways. of the way. This article focuses on where a nonresident worker lives, contributions to Oregon’s General Fund, and the impact on her per capita personal income in Oregon.
Increase in non-resident workers
The number of non-resident workers has grown rapidly over the past decade, from 87,940 in 2009 to 124,653 in 2019.
The 57% increase in Oregonians working in other states, which increased from 41,808 in 2009 to 65,787 in 2019, outpaced the impressive 42% increase in nonresident workers.
Home is where your tax returns are
The 97,610 Washingtonians working in Oregon in 2019 accounted for more than 5% of all workers in Oregon. Among other Oregon neighbors were 9,277 Californians, 7,888 Idahos, and 753 Nevadas who worked in Oregon.
The fact that people live in neighboring states and work in Oregon is not surprising. But what about workers living in Texas, Arizona, Florida and other far-flung states, whose numbers he’s increased 127% between 2009 and 2019, but who drive Snake River down I-84 every morning? I seldom cross over to work. Non-resident workers live in both states but maintain their primary residence outside Oregon, work in Oregon on a temporary assignment, or move during the year. and your residency status may not have been updated yet.
Residence is assigned by the U.S. Census Bureau based on data from federal agencies such as the Internal Revenue Service and the Social Security Administration, so the state where a worker files taxes is considered home.
Another possible explanation for the increase in the number of non-resident workers is the increase in telework. Telework is when regular employees work outside their traditional workplace and interact with others via communication technologies. According to the U.S. Census Bureau, the number of people working from home in Oregon increased by 339,142 from 2011 to 2021. It’s entirely possible that teleworkers are driving some of Oregon’s nonresident workforce growth.
taxed according to where work is done
Income earned from services performed in Oregon by nonresidents is subject to Oregon income tax, regardless of where they claim their residency. According to the Oregon Department of Revenue, Oregon’s total personal income tax liability for nonresidents was more than $782 million on their 2020 tax returns, or 8% of total tax payments. Personal income taxes are the largest source of income for the Oregon General Fund.
Oregon’s personal income tax burden for Washington residents was $362 million on their 2020 tax returns, 63% of which was due to Clark County residents. In fact, Clark County ranks eighth among Oregon counties in Oregon personal income debt (if it were in Oregon). A Californian’s Oregon personal income tax burden was about $62 million, an Idaho resident about $49 million, and residents of other areas outside of Oregon he was $310 million.
Worker Influx Drops PCPI in Oregon
Non-residents working in Oregon lower one of the closely tracked indicators of local income. The U.S. Bureau of Economic Analysis’s (BEA) estimate of her personal income per capita (PCPI) is the annual sum of all resident income in a region divided by the number of residents in that region. BEA reconciles residency by calculating labor income in the worker’s state of residence. The net outflow of workers adds to the state’s PCPI, and like Oregon, the net inflow of workers subtracts from the state’s PCPI.
Oregon, with a net gain of $6 billion from nonresident labor inflows in 2021, made the fourth-largest net gain adjustment to resident income of any state in the BEA’s PCPI calculation. rice field. This significant adjustment is due to Portland, Oregon’s main employment center, which borders Washington with about half of the state’s jobs. Without a net labor influx to Oregon in 2021, Oregon’s PCPI would be about $1,411 higher, and Oregon’s PCPI would be higher than the actual 96% of the very large number of non-resident workers. It would have been 98% of his PCPI in the country. In other words, nonresident workers account for 55% of the difference between her PCPI in Oregon and her PCPI nationwide.
Information about nonresident workers in Oregon comes from OnTheMap data from the U.S. Census Bureau, part of the state’s Local Employment Dynamics (LED) partnership. OnTheMap provides the most comprehensive data on worker flows by resident and place of work. Data are for workers in the second quarter of the year. This analysis considers only the employee’s primary job (the job that earned the most money during the quarter) to avoid double-counting employees with two jobs.
Explore and use available data on the map.
Erik Knoder is a Regional Economist for the Oregon Department of Employment. Please contact us at 541-351-5595.