Oregon Employment Department outlines 150‑day review; paid leave has paid $1.4B to 160,000 Oregonians

The Oregon Employment Department told the Senate Interim Committee on Labor and Business on Sept. 30 that a governor‑requested 150‑day strategic review will deliver prioritized recommendations to improve customer service, stabilize the Frances tax-and-benefits system and strengthen workforce programs.

"By November, we'll deliver a report to Governor Kotak with clear, actionable, and prioritized recommendations to improve customer service and strengthen Oregon's workforce development mission," Director Andrew Stolfi said.

Stolfi said the review will focus on stabilizing Frances online, improving call-wait times and claims processing for Paid Leave Oregon and unemployment insurance, and exploring how to incorporate AI and self‑help tools to reduce phone traffic and better inform claimants about status.

Karen Hummelbaugh, deputy director overseeing paid leave, presented program performance data: "To date, we've paid over $1,400,000,000 in benefits, and that is to about 160,000 folks in Oregon." She reported average claim lengths by leave type (medical about six weeks; bonding about 11 weeks; safe leave about eight weeks), average weekly payouts of about $506 for intermittent leave and about $817 for consecutive leave, and a processing‑time goal of 21 days. Hummelbaugh said trust‑fund reserves are roughly seven months, above the agency’s six‑month target.

Committee members asked whether reserve levels could trigger a reduction in contribution rates; Stolfi and Hummelbaugh said staff model multiple scenarios (for example, lowering a 1% assessment to 0.95% or 0.9%) but cautioned that program newness and uncertainty counsel patience before reducing rates. Stolfi said when OED models potential reductions they look at future revenue, expenditures and reserve trajectory.

Gail Karmenauer, state employment economist, briefed the panel on labor-market indicators: Oregon added 6,900 jobs in August but is down about 18,000 jobs year‑over‑year; unemployment was 5% in August, up from 4.2% a year earlier. Gains are concentrated in private health care and social assistance; manufacturing and construction have shown larger losses. Karmenauer said job vacancies are holding near 51,000 statewide.

Lawmakers probed whether unemployment increases reflect employer relocations, AI adoption or skills mismatch. OED said continuing claims (repeat weekly certifications) are elevated while first‑time claims remain relatively low, and noted WorkSource Oregon provides retraining and placement support; the department committed to follow up with more performance metrics.

The session was informational; the committee did not take formal action but requested additional data on program outcomes and the agency’s modeling of reserve triggers.