Southern Oregon Business Journal - August 2020 - Print Candidate 1

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Special Insert - People’s Bank - Transitions in Leadership - Page 46 Oregon Employment and Unemployment During COVID Who Can’t Work From Home During a Global Pandemic?

The Journal for Business in Southern Oregon

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A Few Words from Jim

Contributors Joe Cortright Joe Cortright is President and principal economist of Impresa, a consulting firm specializing in regional economic analysis, innovation and industry clusters. Prior to starting Impresa, Joe served for 12 years as the Executive Officer of the Oregon Legislature’s Trade and Economic Development Committee. jcortright@cityobservatory.org Anna Johnson Senior Economic Analyst at the Oregon Employment Department anna.l.johnson@oregon.gov

Wow, I’m excited for you to check out this month’s issue. It’s huge! It’s like a double issue.

The theme is Employment and Unemployment During COVID. There is also a special section on People’s Bank inside.

Full Disclosure - I Proudly Serve on the People’s Bank Board.

Guy Tauer Regional Economist at the Oregon Employment Department guy.r.tauer@oregon.gov

I wanted to do the special insert on the bank because there are so many changes happening.

Tim Duy Senior Director, Oregon Economic Forum, Professor of Practice Department of Economics, University of Oregon duy@uoregon.edu Nathan Buehler Strategy & Communications Manager - Business Oregon Polly Farrimond Workforce Analyst - Jackson, Josephine, Klamath, and Lake counties polly.a.farrimond@oregon.gov

Check out the article I wrote about Bill Jacobs on Page 54 and let me know what you think about his journey. He recently retired from the bank board of directors after serving for over 22 years. He was the founding board member and I was blown away by his career path before he retired and relocated to Oregon and ended up helping start the bank. When I sent the story to Bill to fact check, he replied that I was a good story teller.

Henry Fields Workforce Analyst - Lane County

I like telling stories about the people I get to meet and work with so you can meet them too. That’s why I became involved with the journal in the first place.

Jason Payton Occupational Economist jason.m.payton@oregon.gov

I had a quick chat with the banks new President, Julia Beattie and I wanted you to get an idea of who she is apart from a press release.

Brandon Schrader Workforce Analyst - Washington County brandon.w.schrader@oregon.gov

I also asked CEO Ken Trautman how he went through the process to find his replacement as president of the bank he co-founded.

Finally, I’d like to thank this months edition sponsor - Energy Trust Of Oregon. Energy Trust of Oregon offers cash incentives to help make energy-saving equipment upgrades more affordable for your business. Check out their ad on page 29.

Founder Greg Henderson ghenderson703@gmail.com Greg started the Southern Oregon Business Journal in 2015 and retired in 2020.

2 | Southern Oregon Business Journal August 2020

Jim Teece Publisher of the Southern Oregon Business Journal Jim@SouthernOregonBusiness.com

Find the latest news on SouthernOregonBusiness.com

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August 2020 - Table of Contents

Inside This Issue Proudly Serving Benton, Coos, Curry, Deschutes, Douglas, Jackson, Josephine, Klamath, Lane, Lincoln & Linn Counties

Business Oregon Announces Third Round of Grants to Serve Small Businesses, Along With Millions in New Funding - Page 4

August 2020

Since 2015

When workers can live anywhere - Page 6

This Month’s Edition of The Southern Oregon Business Journal is Sponsored By:

Federal Reserve Themes In The Second Half of 2020 - Page 8 Characteristics of the Covered Unemployed in May 2020 - Page 14 Characteristics of the Covered Unemployed in May 2020 in Jackson and Josephine Counties - Page 20 Working from Home and Broadband Access in Oregon - Page 23 Lane County Lost More Jobs than the State in Recent Recessions - Page 24 How Americans Used Their Stimulus Checks - Page 25 How Buyers In June : Housing Sales Jump - Page 25 2020 Oregon Wage Data - Page 26 Minimum Wage Rises on July 1, Reaching $12.00 per Hour in the Rogue Valley Page 30 Minimum Wage Rises on July 1, Reaching $11.50 per Hour at the South Coast Page 32 Statewide Mask, Face Shield, Face Covering Guidance as of July 24, 2020 - Page 34 What COVID-19 means for energy efficiency in Oregon - Page 37 Who Can’t Work From Home During a Global Pandemic? - Page 38 Special Insert - People’s Bank - Transitions in Leadership - Pages 46 - 57 People’s Bank Prepares For Transition In Executive Leadership - page 47 Meet Julia Beattie - The New President of People’s Bank - Page 48 Choosing your Replacement - Page 50 People’s Bank Promotes Lindsey Trautman To Chief Financial Officer Page 52 People’s Bank year-to-date Earnings per Share Increase 24% - Page 53 People’s Bank Founding Board Member, Bill Jacobs, Retires From the Board after 22 years of Service. - Page 54

Special Insert - People’s Bank - Transitions in Leadership - Page 46 Oregon Employment and Unemployment During COVID Who Can’t Work From Home During a Global Pandemic?

The Journal for Business in Southern Oregon

SouthernOregonBusiness.com

Cover photo of the Executive Leadership Team at People’s Bank Photo Courtesy People’s Bank

The Southern Oregon Business Journal extends sincere thanks to the following companies for their continued presence as important cogs in the wheels of industry in southern Oregon.

COVID-19

By Nathan Buehler Business Oregon

B

usiness Oregon announced the recipients of $5.5 million in grant funding through its Emergency Business Assistance Grant Fund, created

by Governor Kate Brown and the Oregon Legislature to assist small businesses impacted by COVID-19. To date, the Fund was disbursed through three rounds of Requests for Proposals (RFPs) from applicants that will assist small businesses in Oregon.

“We’re using everything at our disposal to help small businesses across the state, and working with all of our local and regional partners to make it happen,” said Business Oregon Director Chris Cummings. “As fast as we can get the resources in, we

4 | Southern Oregon Business Journal August 2020

Business Oregon Announces Third Round of Grants to Serve Small Businesses, Along With Millions in New Funding

turn them around and get them out into our communities.”

historically disadvantaged business owners.

This round solicited proposals from cities, counties, and Economic Development Districts (EDDs). These organizations are intermediaries that will in turn issue grants to local small

Cranberry Station Soap Company in Klamath Falls was one recipient of a Business Oregon grant through our regional partner, South Central Economic Development District.

“This has enabled us to keep our store open, and catch up on fixed expenses like insurance, utilities, and phone bills,” said Sue Connelly, owner of Cranberry Station.

businesses with fewer than 25 employees, among other parameters.

The program also encourages efforts to provide access to sole proprietors and

Boxcar Hill Campground in North Bend worked with our regional partner CCD Business Development Corp. Boxcar noted the speed at which both CCD and

“I found the State of Oregon COVID-19 Emergency Grant application process extremely easy and fast to complete,” said Boxcar Hill owner Todd Goergen. “Thanks CCD for providing small business enterprises located in Coos, Curry and Douglas counties a hassle-free way to apply for this grant program.”

While a total of $10 million in state funds was originally available, new federal CAREs Act funding was recently allocated for the program, up to $22.5 million. $5 million of the new funding is part of the round announced today, and the remainder will be re-distributed to entities that have previously received funds from these first three rounds of the program.

the state made the grant happen to help their situation.

Business Oregon funded each of the 37 applications received.

Awards were allocated to achieve a good geographic distribution of funding for small businesses across the state. The average award is $149,0000.

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Southern Oregon Business Journal August 2020 | 5

OPINION

By Joe Cortright

A

nother anecdotefueled tale predicting of urban decline Writing in The Wall Street Journal, Rachel Feintzeig and Ben Eisen add another story, this one headlined “When workers can live anywhere” to the growing pile of claims that fear of Covid-19 and the possibility for remote work are likely to lead to the demise of cities.

“Still, coronavirusspurred moving could accelerate a shift already under way from dense, expensive cities to more affordable areas, including small cities and suburbs.”

When workers can live anywhere heart of California’s tony wine country and proximate to San Francisco—is not any kind of indicator of an exodus from cities to rural areas, especially an exodus supposedly driven a thirst for cheap real estate.

The Journal article is better than most in acknowledging that there are actual limits to the feasibility of remote working for most workers. They relate the example of one tech company:

Already some companies are rethinking their workfrom-home experiments.

Image links to Wall Street Journal Article. https://www.wsj.com/articles/when-workers-can-liveanywhere-many-ask-why-do-i-live-here-11592386201 Executives at Twilio Inc., a San Francisco-based tech increase in the number of 25- to 34-yearcompany, in early May were leaning olds with a four-year degree living in its The story begins with the usual anecdote toward giving employees a one-time densest, most central neighborhoods of a professional couple that’s now offer to move where they wanted and since 2010, and the rate of growth has moving away from New York City. Caught work remotely permanently, according to accelerated in four-fifths of these metro in the lockdown in California in March, chief people officer Christy Lake. By the areas during that time. Moreover, the these New Yorkers—a tech professional end of the month, the company had latest data on search activity on real and a restauranteur—decided not to go scaled back its approach, instead telling estate websites like Zillow and back, and instead will relocate to employees they could work from another ApartmentList.com shows no decrease— Sonoma (median home price $807,000). city or state domestically through the and in fact, an increase—in the searches As we’ve reported at City Observatory, end of the year, if they got approval from in cities compared to their suburbs. despite such anecdotes, the data clearly a manager.

You can always dredge up an anecdote show well-educated adults moving to So the much ballyhooed “anyone can or two to show someone moving from a close-in urban neighborhoods at an even work anywhere” policy lasted for a large city to a smaller one. But the faster rate than in the previous decade. couple of weeks. And apparently has narrow slice of folks who decamp from Every large metro in the US recorded an touched only a few employees.

New York City to say, Sonoma—in the 6 | Southern Oregon Business Journal August 2020

The Journal story goes on to disclose that just 15 of the firm’s 3,000 employees have actually relocated to remote locations. And even these new “remote” locations are . . . other big cites. Their single anecdote about software engineer Ly Nguyen says she’s moving to Seattle (yet another large metro area, with a burgeoning tech sector and high rents). Even the anecdotes don’t support the headline.

about how where you live affects your ability to build a personal and professional network that helps you find your next job, a better job, or perhaps your dream job? We know that a chief advantage of cities is that they offer thick labor markets and that a strong web of social and personal connections plays a key role in people finding better jobs, and developing their skills.

People choose cities to be close to other people and amenities, not just jobs

The other thing these sweeping claims about remote work miss is the competitive nature of career opportunities in many professional jobs. Sure, you can work remotely; but as anyone who’s ever worked in an office knows, being there matters.

Being in the office means you are much more likely to be in-the-know, be perceived to be available and interested, and simply be harder to overlook. A remote worker may be cut off from the information and opportunities that enable them to proceed further; and when a boss is looking for someone to promote—or someone to lay-off— the remote worker is almost certainly at a disadvantage, compared to someone who’s always or regularly present in person. And if everyone has to work remotely for a short time—say, at the height of a pandemic—there’s no competitive disadvantage to working remotely; but once the office opens up again, it will be better for your career prospects if you’re in the office.

Why do these stories get it so wrong?

The implicit assumption is that people really don’t want to live in cities, except possibly as a way to earn money: The notion is that, freed from the “need” to live close to the office, people will decamp to suburban and rural areas, which they somehow prefer. What that misses is that cities offer huge opportunities for art, culture, socialization, friendships and consumption. People live in cities to be close to jobs, but also for a range of other reasons.

What a lot of this reporting misses is that the reason that most people choose to live in a particular city is not nearly so dominated by job availability as in the past. We’ve surveyed well-educated young adults about their location preference, and by more than a two-toone margin, they told us that they would choose the place they wanted to live, and look for a job there, rather than choose a place with the greatest number of job opportunities.

But even the narrative about jobs and remote work is wrong: Just because you might be able to do your current job by working remotely, what does this say

There will always be examples of midto late-career professionals, who, having honed their craft, built their reputations and established a strong network, will decamp from an expensive urban

location to a bucolic country retreat.

(Bend, Oregon is full of Californians who’ve turned their annual vacation destination into a permanent home).

But here’s the point: the only way you get to have the skills, reputation and networks is to forge them by being in the thick of things in the city. Especially for young adults, for people starting out, looking to learn a career, to find out what they’re good at and passionate about, and to find others who share their interests, there’s no place to be like a city. Which is exactly why our new report, Youth Movement: Accelerating America’s Urban Renaissance, shows that well-educated young adults are settling in the close-in neighborhoods of America’s largest metro areas in increasing numbers.

Cities have dealt with these challenges— and overblown prognostications of their demise—many times before. As the Journal writers concede (well down in the body of their story): But Manhattan always seems to rise again, and urban centers like New York and San Francisco have continued to be gathering places for young talent to congregate and companies to find it.

In our view, that’s the real story, and its an understatement: We see robust data underpinning an established and accelerating generational trend toward urban living. There’s one other trend we’re confident of as well: the media will never tire of publishing anecdotefueled anti-urban prognostications like this one.

Southern Oregon Business Journal August 2020 | 7

ECONOMY

By Tim Duy, Senior Director, Oregon Economic Forum, Professor of Practice Department of Economics, University of Oregon

T

he pandemic will continue to weigh on the economy but ongoing fiscal support matched by Fed easing will help ease the pain and support markets.

Bloomberg Opinion My Bloomberg column last week: For the Federal Reserve, this time really is different. Having learned a hard lesson in the last recovery — don’t tighten monetary policy too early — the central bank is leaning in the opposite direction. In practice, that means the Fed will not just emphasize actual inflation over forecasted inflation, but will also attempt to push the inflate rate above its 2% target. It’s a whole new ballgame.

Continued here.

8 | Southern Oregon Business Journal August 2020

Federal Reserve Themes In The Second Half of 2020

Key Data June retail sales were above expectations and May numbers revised higher. Core sales (excluding gas, autos, food services, and building materials) are solidly above the pre-pandemic trend even though unemployment is in double digits. To me, this is pretty clear evidence that fiscal policy works. Put money in the hands of people who can and will spend it, and they spend it. Looking forward though, renewed shutdowns in states such as California and the general loss of confidence as Covid-19 numbers track higher calls into question the ability of the consumer to sustain this momentum going into the back half of the year. This likely accounts for the softening from 78.1 to 73.2 in the preliminary July release of University of Michigan consumer sentiment.

Fiscal policy is crucial here; Congress needs to

deliver a package that includes extending enhanced unemployment benefits.

Industrial production jumped 5.4% in June as the lockdowns eased, but remains 10.8% below last year’s levels. The nation’s car manufacturers are

ramping up production to meet a rebound in demand.

Remember though the initial gains will come most easily.

Future gains will be slower.

One sector that looks to be having a real V-shaped recovery is housing. Housing

starts continued to regain lost ground in June and homebuilder confidence in July to almost its prepandemic levels. Unlike the last two recessions, we didn’t head into this downturn with a substantial over-investment in any one sector of the economy such that it was impacting Southern Oregon Business Journal August 2020 | 9

Economy : Continued from Page 9

overall activity. If anything, the opposite was the case this time with housing still recovering from lost ground in

10 | Southern Oregon Business Journal August 2020

the aftermath of the last recession while experiencing demographic-driven demand.

Housing will provide some

much-needed support for this recovery.

The story remains the same as far as initial unemployment claims are concerned. Progress has basically stopped with claims flatlining. Too many firms are realizing that they can’t either stay afloat or retain all their employees given the protracted period of time until the pandemic eases and life resumes to something approaching normal. The case for retaining enhanced unemployment benefits and a new round of PPP remains strong.

Consumer price inflation came in a bit above expectations; see my comments here.

Overall, the data continues to deliver something for everyone. There is enough

bounce in the data to see the way forward, there is enough weakness in the data to justify pessimism about the sustainability of that path forward, and there is evidence that fiscal policy works and needs to be sustained.

Fedspeak Chicago Federal Reserve President Charles Evans came out in support of allowing inflation to drift above 2% before tightening policy. Via Ann Saphir at Reuters: “I am hard pressed to think of reasons why we would need to move away from accommodative monetary policy unless inflation was well above 2% for an extended period of time, and the economy was just very different from what we are seeing right now,” he said in

a virtual event held by the Global Interdependence Center. “That doesn’t seem to be very likely.”

He follows comments by Federal Reserve Governor Lael Brainard arguing for holding policy steady until inflation reaches 2% in support of overshooting the inflation target: With the policy rate constrained by the effective lower bound, forward guidance constitutes a vital way to provide the necessary accommodation. For instance, research suggests that refraining from liftoff until inflation reaches 2 percent could lead to some modest temporary overshooting, which would help offset the previous underperformance.

Southern Oregon Business Journal August 2020 | 11

Economy : Continued from Page 11

While the majority of the Fed is moving toward enhanced forward guidance, some are resisting. Via Greg Robb at MarketWatch: In a separate interview with Yahoo Finance, New York Fed President John Williams suggested new forward guidance wasn’t needed in the short-term.

Right now, the Fed’s guidance language “is serving us well,” Williams said.

“So we do have some time to think about how we should evolve that guidance as we go forward,” he added.

Williams tends to be a lagging indicator on these sorts of things. Williams also commented on the lack of use of the Fed’s emergency lending facilities, via Reuters: “This is in fact a measure of success — the existence of the facilities, even in a backstop role, has helped boost confidence to the point where borrowers are able to access credit from the private market at affordable rates,” he said.

The Financial Times also reports on the limited use of the Fed’s programs and notes that it is reducing investor expectations for the growth of the balance sheet. The muchanticipated Main Street Lending program has been a dud. Personally, this is as I expected. This isn’t the Fed’s job and they don’t have any 12 | Southern Oregon Business Journal August 2020

experience in it. Nick Timiraos and Kate Davidson at the Wall Street Journal write that U.S. Treasury officials also worked to limit the attractiveness of the program: Fed officials generally favored easier terms that would increase the risk of the government losing money, while Treasury officials preferred a more conservative approach, people familiar with the process said.

While Treasury didn’t make the Fed’s job any easier, I think there is a more fundamental problem. Firms with operations that can survive the pandemic are probably both solvent and do not face a liquidity constraint from tight credit. They are already getting the fi nancing they need. Firms that cannot survive the pandemic are insolvent and if you want to sustain them, they need a grant (like what U.S. Treasury Secretary is arguing for PPP loans less than $150,000; see the Wall Street Journal), not a loan, even a long-term, low-interest loan. It’s still a weight on their future profi tability and enhances the risk of business failure after the pandemic is over. I suspect the space in-between, fi rms that both can’t get fi nancing now but are fundamentally solvent and can afford to pay back the loan after the pandemic, is fairly small. Federal Reserve.

Chair Jerome Powell though thinks I could be wrong.

Via Reuters: Fed Chair Jerome Powell has said he expects the Main Street Lending Program to come in handy in the fall, when more companies may be financially stressed enough to need to tap it.

Time will tell.

Upcoming Data Only a handful of major data releases this week. Tuesday we have existing home sales, expected to be 4.86 million for June compared to 3.91 million the previous month. More housing data will come Friday with new home sales for June, 700k expected versus 676k in May. See comments on housing above; this sector has shown remarkable resiliency to date. Thursday we get the usual unemployment claims data. Market participants are looking for initial claims to remain flat at 1.3 million; obviously a substantially lower number would be a ray of sunshine on the bleak labor landscape but such an outcome seems unlikely.

Discussion The Fed is moving past the emergency response phase of this recession and into the supporting/accelerating the recovery phase. They will continue to fiddle with the lending programs, but I suspect the take-up of those

programs won’t accelerate greatly unless the Fed drops interest rate to zero and extends the repayment horizon to 10 or 20 years. I am thinking the Fed will lose interest in the programs sooner or later and adopt William’s position that the lack of use reflects sufficient credit availability. In other words, the Fed did its job saving the financial system; anything else is just a bonus.

It is fairly evident that the Fed is thinking about what comes next. I continue to anticipate the following themes: 1. Deflationary forces dominate the landscape, so there is no reason to think about raising interest rates.

2. No, really, we aren’t thinking about raising rates.

3. Because we know you probably won’t believe us as soon as the economy looks a little better, we are going to have to lock down your expectations with more aggressive forward guidance.

4. And, because we kind of screwed up in the last expansion, this time we are not going to pull back on accommodative policy until inflation is actually at 2% and we can be sure we are going to overshoot.

5. Overshooting though isn’t part of our policy set yet, but we have been reviewing our strategy and procedures (nudge, nudge, wink, wink).

6. If unemployment stays high, we are going to have to do something else, probably yield curve control but not everyone is on board with that yet.

The obvious implication is that interest rates will remain close to zero at the short and medium end of the curve and held down at the longer end.

This is going to stress a lot of people out because “interest rates and stocks are telling different stories.” Seriously, like rates haven’t been falling since the mid-80’s while stocks rose?

Rates are structurally low now.

They don’t need to rise to confirm the gain in equities.

Remember what happened in 2018 after the Fed got it into its head they it could raise rates to something closer to “normal.” They had to reverse course.

Another thing to watch for are claims that the Fed is pushing on a string with regards to inflation. I get that story. After all, the Fed didn’t get to 2% in the last cycle, why would we believe them now? And, well, you know, Japan. A couple of responses: During the last cycle, the Fed didn’t really have a strategy for getting to

2% on a sustained basis because they were trying to come in from below, particularly early in the cycle.

In effect, the Fed sabotaged itself with excessively tight policy because they were trying to hit exactly 2% not an average of 2%. This was compounded by an adherence to a Phillips curve framework despite persistently low inflation. The Fed is trying to remedy both errors.

Also important is the Fed is sending a signal that they won’t automatically offset fiscal policy. They need to see actual not forecasted inflation. The Fed not getting in the way of expansionary fiscal policy should support inflation, assuming Congress keeps up a rapid pace of deficit spending.

Bottom Line: The virus is dictating the agenda. Until we can control Covid-19, the recovery overall will struggle even if some sectors like housing look promising. We have the fiscal capacity to ease the pain, and will probably continue to use it. The Fed is looking more toward the future and seeing an array of options to support and accelerate the recovery.

Southern Oregon Business Journal August 2020 | 13

EMPLOYMENT

by Anna Johnson, Senior Economic Analyst, for Employment in Oregon

S

ince public health measures began to combat the rapid spread of COVID-19 virus, Oregon has seen an unprecedented and devastating impact on the economy. Along with the monthly employment and unemployment numbers,

14 | Southern Oregon Business Journal August 2020

Characteristics of the Covered Unemployed in May 2020

there is data available every month on the demographic composition of Unemployment Insurance claimants.

The demographic data shown here comes from the Program for Measuring Insured Unemployed

Statistics (PROMIS). The data does not provide detailed information for every continued claim that was filed during the month. The data are based on the universe of those who filed a continued claim for regular Unemployment Insurance in the week containing the

19th of the month, which reflects unemployment during the week of the 12th.

This corresponds with the Bureau of Labor Statistics Current Population Survey.

This also corresponds to the monthly unemployment rate and employment figures.

This data set also excludes non-Oregon residents and any claimants that had reported earnings during the reference week of the 12th. The purpose of the

data below is to get an idea of who is unemployed and receiving Unemployment Insurance.

In the first three months of 2020, an average of 25,500 people filed a continued claim for Unemployment Insurance. In April, that number rose to about 194,500 and remained at 194,000 in May. As would be expected,

accommodation and food services has been the hardest hit industry during the crisis. In May 2020, this industry made up almost 50,000 of total continued claims. This amount of claims represented nearly 27 percent of second quarter 2019 employment in that industry. Arts, entertainment, and recreation was the next hardest hit industry.

Museums, ski resorts, zoos, Southern Oregon Business Journal August 2020 | 15

Employment : Continued from Page 15

and other recreation companies have close or seen their activity slowed.

Other services, which includes personal care services like fitness instructors, childcare workers, barbers/stylists, massage therapists, and pet groomers, was also hit significantly relative to its industry employment.Â

16 | Southern Oregon Business Journal August 2020

On the occupation side, food preparation and serving occupations represented the largest share of May 2020 continued claims. Before the COVID-19 public health restrictions were put into place, these occupations only made up 6 percent of continued claims. This occupational group also has some of the lowest wages in Oregon, with a median hourly wage of less than

$15.00. Lower paying occupational groups has higher shares of continued claims than higher paying occupational groups.

When comparing the level of education for recent unemployment insurance claimants with the educational attainment of the entire labor force, it’s clear that those with lower levels of education have

been hit particularly hard.

This is likely a reflection of the industries most impacted by COVID-19 related closures, such as leisure and hospitality, construction, retail, and manufacturing which have a higher concentration of workers with a high school diploma or less. Around 56 percent of May continued unemployment insurance claims were by individuals with a high school diploma

or less, a significantly higher share than the 35 percent of the labor force they account for.

The age distribution of the unemployment insurance claimants is fairly typical of the labor force more broadly, with a few exceptions. Those ages 25 to 34 have been particularly hard hit. They accounted for roughly 27 percent of all

unemployment insurance claimants in May, but only 22 percent of the total labor force. This age group accounts for a larger share of the jobs in industries most impacted by COVID-19 related closures.

It could also be that this group represents workers earlier in their career and they were more susceptible to layoffs than higher level managers or supervisors.

Southern Oregon Business Journal August 2020 | 17

Employment : Continued from Page 17

While filing for unemployment benefits claimants are asked their gender, race, and ethnicity.

These questions are not mandatory, resulting in a significant amount of nonresponse. In May 2020, about 43 percent of claims did not have information available for the gender category. Before COVID-19, men represented about 61 percent of continued 18 | Southern Oregon Business Journal August 2020

claimants. After COVID-19 closures, men and women each made up about 28 percent of continued claimants.

Although we do not know for sure the gender distribution of the “information not available” category, we can make some educated guesses.

Based on data from the U.S. Census Bureau’s American Community Survey, women

represent the majority of employed workers in many of the industries hardest hit by recent layoffs, including accommodation and food services (57%); health care and social assistance (76%); and other services (55%).

With women also representing a larger share of layoffs than is typical, it is likely that women are being disproportionally impacted by these COVID layoffs.

There are similar nonresponse issues with race.

Roughly 17 percent of the unemployment insurance continued claims with some demographic information did not include race.

Additionally, no unemployment insurance claimants were coded into the “two or more races” category. The racial and ethnic breakout of the COVID unemployed looks similar to Oregon’s unemployed before the outbreak. With the data that

we do have, Asians percentage of continued claims increased by about 3 percentage points between early 2020 and May 2020.

However, similar to gender it is difficult to definitively state that all racial and ethnic groups are being impacted similarly relative to their size, as the nonresponse rate is high enough to leave open some uncertainty.

the emotional toll this global pandemic is taking, many Oregonians are also struggling with the economic realities of being unemployed. For additional information about unemployment insurance and updates regarding new federal programs go here.

For more demographic information on continued claims by county, please visit the COVID-19 page on QualityInfo.org.

This is a difficult time for many of us. In addition to Southern Oregon Business Journal August 2020 | 19

EMPLOYMENT

by Polly Farrimond, Workforce Analyst, for Employment in Oregon

I

n May 2020, Jackson County’s unemployment rate was 14.4 percent, up 9.8 percentage points from last year. Josephine County’s unemployment rate was 13.9 percent, up 8.7 percentage points over last year. The COVID-19 pandemic has impacted residents at record

20 | Southern Oregon Business Journal August 2020

Characteristics of the Covered Unemployed in May 2020 in Jackson and Josephine Counties

levels reflecting the recession that has impacted the entire United States. On May 15, 2020 Jackson and Josephine County were approved to enter phase one reopening. Phase one allowed restaurants and bars, personal services, and gyms to resume operations.

Some establishments in

these areas did reopen but some have continued to be closed. On June 5, 2020 phase two was approved for the Rogue Valley. This allowed for some nonessential travel and smaller groups to resume meeting.

As of July 1, 2020, the hardest hit accommodation and food services category

continues to see temporarily closed businesses and others have closed permanently.

Accommodation and food services businesses have experienced the biggest impact of this COVID-19 crisis. The retail trade industry followed food service in the biggest decline, with many businesses having to close their doors to the public until the reopening phases began. Health care and social assistance rounded

out the top three of the industries to sustain a major hit during the pandemic.

Although you might not expect health care to be heavily affected during a health crisis, many health related businesses that are not serving on the front lines of the COVID-19 response such as dentist offices, medical labs, and surgery centers were closed for business as elective and non-emergency procedures were cancelled. Beginning May 1, elective procedures were allowed across the

state and many have been trying to serve the backlog of patients.

When looking at the education levels of the workers receiving unemployment insurance in Jackson and Josephine County, it is clear that the hardest hit during the COVID-19 pandemic were the workers with a high school degree or less. This is likely a reflection of the industries most impacted by COVID-19 related closures, such as leisure and Southern Oregon Business Journal August 2020 | 21

Employment : Continued from Page 21

hospitality, construction, retail, and manufacturing, which have a higher concentration of workers with a high school diploma or less.

The age distribution of the unemployment insurance claimants is fairly typical of the labor force more broadly, with a few exceptions. Those ages 25 to 34 have been particularly hard hit. This age group accounts for a larger share 22 | Southern Oregon Business Journal July 2020

of the jobs in industries that were most impacted by COVID-19 related closures.

It could also be that this group represents workers earlier in their career and they were more susceptible to layoffs than higher-level managers or supervisors.

The youngest workers (ages 16 to 19) seem to be the least impacted. However, this is likely a reflection of lack of unemployment insurance coverage for these young workers who

have fewer covered hours in the system.

To stay current on the local impacts of COVID-19 on the workforce in Jackson and Josephine counties, you can find information on QualityInfo site which has been redesigned. This site contains articles and downloadable data for the Rogue Valley.

Working from Home and Broadband Access in Oregon

economies, workforce needs,

connection, but really about the

commercial real estate, and the

speed, reliability and price of that

like.

connection. We know once you get

I want to highlight three main

outside of the major cities in the

findings.

Willamette Valley, the speed and

There is considerable speculation

First, the reason we care from a big

reliability can fall off, impacting

about how the pandemic will

picture perspective relates to

potential growth opportunities.

change the way we live. In

Oregon’s long-run outlook. One of

However broadband access also

particular our office is fielding a lot

our comparative advantages

matters considerably for social

of questions about working from

remains the state’s ability to attract

connections, and increasingly for

home and whether households may

and retain talent. To the extent that

education needs as students do

increasingly choose to live in the

Oregon sees any sort of bump in

more online learning due to the

suburbs or rural areas as a result.

COVID-related migration, that’s

pandemic. We also know there a lot

Solid data on 2020 migration

beneficial to the long-run outlook.

of inequities regarding access to

patterns is a long way away. And

Second, within the state the folks

technology. This goes for urban vs

early indications based on Zillow

working from home are diversifying

rural, young vs old, rich vs poor,

our regional economies. Outside of

and white vs Black. How all of those

the Portland area, those working

factors interact matters

from home tend to be concentrated

considerably for social, economic,

in occupations that aren’t as

and education connections in

By Josh Lehner, Oregon Office of Economic Analysis

home searches show Americans are not increasingly looking toward the suburbs. However, time will tell to what extent we do alter our lives as a result of the pandemic.

With that in mind, our office has pulled together and updated some of our previous research on working

prevalent locally as they are

society.

nationally. In essence these

Bottom Line: Oregon overall does

workers are voting with their feet,

better than much of the country

saying they want to live in our

when it comes to broadband access

communities. However it is harder

and working from home. There

from home and broadband access

to find a job in their chosen field, so

here in Oregon.

they are making it work by bringing

It is important to keep in mind that

their job with them, or starting

to the extent working from home

their own business. This increase in

represents a long-run growth

economic diversification should

opportunity, and it does, many of

make our regional economies more

where we live and how we work.

these changes tend to be

resilient and better able to

Metropolitan areas still provide a lot

incremental. Yes, there is a spike in

withstand different types of

of benefits, including thicker labor

working from home due to the

recessions over time.

markets for future job

pandemic. However, when it is safe

Third, broadband is a critical

opportunities. However, even

to do so, most workers will likely be

component for a number of

ongoing incremental shifts matter

recalled to the office. Permanent

reasons. On the economic side,

and to the extent the economy

massive, wholesale changes to they

having residents better connected

continues to diversify, should pay

way we work are unlikely. That

to labor markets to search for jobs,

long-run dividends for the state.

said, even incremental changes and

and interact with co-workers and

evolutions can matter for regional

clients is important. It’s not just the availability of a broadband

remains a lot of potential for future growth. However, expectations should be realistic. It is unlikely that we will see massive changes in

h"ps://oregoneconomicanalysis.com/ 2020/07/22/working-from-home-and-broadbandaccess-in-oregon/

Southern Oregon Business Journal November 2019 | 23

EMPLOYMENT

by Henry Fields, Workforce Analyst, for Employment in Oregon

D

uring the Great Recession, employment dropped more and took longer to recover in Lane County than in the state as a whole. Part of that had to do with the importance to our local economy of certain sectors that were particularly

24 | Southern Oregon Business Journal August 2020

Lane County Lost More Jobs than the State in Recent Recessions

vulnerable, such as manufacturing and construction-dependent industries.

In recent months in Lane County, the COVID-19 pandemic and response measures have affected

employment sharply, with a March to April decline of 25,000 jobs, by far the largest on record. Based on what we know so far, we also appear to have lost a greater number of jobs relative to the size of our economy than the state.

The graph below shows the trajectory of the two recessions and recoveries in Oregon and Lane County, with blue representing the state’s change in jobs and yellow Lane County’s.

The Great Recession (the dotted lines) had more of an effect on Lane County employment, and our recovery took longer to take hold, as the lines widen and separate after about 18 months from peak employment. In the early days of the 2020 recession, Lane County appears to have been more deeply impacted as well.

In 2020, our industry mix again tells part of the story.

In 2019, Lane County had slightly more jobs on a percentage basis in the three industries with the highest number of May 2020 continued Unemployment Insurance claims in the state: accommodations and food service, retail trade, and health care and social assistance.

We don’t know exactly what shape the recovery will take in Lane County, Oregon, or the nation, but we can hope that the recovery in employment will happen more quickly than during the 2008 recession. It’s difficult to say whether that will happen. On the bright side, employment grew in May of 2020, much earlier than employment grew after 2008. As is evident from the graph though, we’re talking about a much more severe and sudden shock to employment in 2020.

Home Buyers in June: Housing Sales Jump The real estate market is dedicated to keeping buyers, sellers, agents, and all parties involved, safe during COVID – and keeping transactions flowing.

According to the National Association of Realtors, sales of existing homes jumped 21% in June compared with May. This is also the largest monthly gain since this data was first tracked back in 1968.

Sales might have been even higher, if there were more inventory to show. Existing homes available has fallen 18.2% annually and to 1.57 million homes for sale at the end of June.

Inventory problems isn’t new, but fortunately mortgage rates have been helping ease buyer tension. The median price of an existing home sold in June rose 3.5% annually to $295,300. Mortgage applications rose 19% annually last week.

Real estate experts will keep an eye on the market throughout the summer to better predict how the fall and winter months might look.

Want more real estate news? Stop by AmeriTitle’s Blog!

Southern Oregon Business Journal August 2020 | 25

EMPLOYMENT

by Jason Payton, Occupational Economist Oregon Employment Department

H

ow do we know the worth of our work?

How do we know we are paying employees a competitive wage? The only way to know is to get a snapshot of what other

26 | Southern Oregon Business Journal August 2020

2020 Oregon Wage Data

workers are getting paid for doing similar work. If you don’t know where to start, the Oregon Employment Department is here to help.

The 2020 version of the Oregon Employment Department’s Occupational Wage Information is now available. Thanks to survey responses from employers around the state, wage

scales for nearly 740 occupations have been published.

The annual average wage for all occupations in Oregon was $55,349 in 2020, or $26.61 per hour. Of the occupations with published data lifeguards, ski patrol, and other recreational protective service workers had the lowest average wage of $12.91 per hour. One of the reasons for the low pay in these jobs is the workforce performing this type of work skews significantly younger than other occupations. Anesthesiologi sts had the highest average

wage ($139.62 per hour).

Medical specialties like anesthesiology take many years of education and experience in order to perform that level of work.

Looking at average wages is like looking at a black and white photograph of a flower garden. You can get an idea of what you are looking at, but you are missing the contrasts and dynamics you get if the picture was in color. We need to look at the wage ranges of different occupations to get a fully defined picture of pay in the workforce.

Wage ranges give us a better idea of what we could expect if we were to hire, or work in a particular occupation. We provide wages ranges by publishing a series of percentiles for each occupation. A percentile wage shows the percentage of workers in an occupation that earn less than a given wage and the percentage that earn more.

In most cases, wages in the 10th or 25th percentile likely reflect workers just entering a career, or who have less education attainment than others performing similar work.

Southern Oregon Business Journal August 2020 | 27

Employment : Continued from Page 27

To better frame these insights, let’s look at the wage ranges for sales occupations in Oregon.

Most sales occupations in Oregon pay between $12.23 and $38.11 per hour.

More than half of all sales occupations in Oregon are either cashiers or retail sales workers. These occupations pay typically on the lower end of the wage range, and may have lower education 28 | Southern Oregon Business Journal July 2020

and experience requirements than other sales occupations. For instance, securities, commodities, and financial services sales positions are some of the highest paying sales positions in Oregon.

These positions usually require attaining a number of licenses to perform the work, and a higher level of education to do so.

Oregon Wage Information provides us a better understanding of the differences in pay found across the state. The average wage in Northwest Oregon was $24.32 per hour, about 9 percent less than the statewide average.

But that doesn’t mean that all jobs along the North Coast pay less than the statewide average.

WHEN EVERY DOLLAR COUNTS, WE’RE HERE TO HELP YOU SAVE. Energy Trust of Oregon offers cash incentives to help make energy-saving equipment upgrades more affordable for your business.

For a limited-time, Energy Trust is offering bonus incentives to Oregon business customers. Visit energytrust.org/commercial/bonuses for more details.

+

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Serving customers of Portland General Electric, Pacific Power, NW Natural, Cascade Natural Gas and Avista.

24097_EnergyTrust_June2020_Southern_ORBusJournal_Ad_4-875x7-375_v2.indd 1 Southern Oregon Business 7/7/20 Journal 2:10 PMAugust 2020 | 29

EMPLOYMENT

by Guy Tauer Regional Economist Coos, Curry, Jackson, and Josephine counties

I

n the third quarter of 2019, the Oregon Employment Department estimates there were about 9,144 payroll jobs that paid minimum wage in the Rogue Valley, at the time $11.25 per hour. As of July 1, 2020, that minimum hourly rate in the Rogue Valley rises to $12.00 per hour, or an increase of

30 | Southern Oregon Business Journal August 2020

Minimum Wage Rises on July 1, Reaching $12.00 per Hour in the Rogue Valley

about 6.6 percent. With overall U.S. consumer prices essentially flat over the year ending in May 2020, this increase of 6.6 percent also represents a real purchasing power increase of about the same amount. The increase the prior year was a 50-cent increase, or a gain of about 4.6 percent. Oregon’s

minimum wage levels were set by Senate Bill 1532 in 2016. Rogue Valley minimum wage earners will continue to see 75 cent per hour annual increases each July 1st, until 2022 when the minimum wage will be $13.50. After that, the wage will be adjusted each year

based on the U.S. consumer price index (CPI).

We do have estimates of minimum wage jobs by industry and county for Oregon. A few notes of caution. These are estimates, not exact counts. The methodology might overstate the number of jobs in the lower-wage ranges in metro-area counties, or understate the number of lower-wage jobs in non-metro counties. For all industries in the Rogue

Valley, more than 40 percent of total records come from employment that exists in the county, but is initially reported from a headquarters company located elsewhere.

These estimates show about two-thirds of total Rogue Valley minimum wage jobs are in two industries – leisure and hospitality and retail trade, with about 4,000 jobs in leisure and hospitality and just less than 2,000 jobs in retail trade paying minimum

wage in 2019. There were also about 750 jobs in health care and social assistance that paid $11.25 per hour last year. Minimum wage jobs make up about 20 percent of all leisure and hospitality jobs and about 9 percent of all retail trade jobs – the two industries where most minimum wage jobs are found. Nearly one out of ten jobs in private educational services and in other services paid minimum wage in the Rogue Valley.

Southern Oregon Business Journal August 2020 | 31

EMPLOYMENT

by Guy Tauer Regional Economist Coos, Curry, Jackson, and Josephine counties

W

e do have estimates of minimum wage jobs by industry and county for Oregon. A few notes of caution. These are estimates, not exact counts. The methodology might overstate the number of jobs in the lower-wage ranges in metro-area counties, or understate the number of lower-wage jobs in nonmetro counties. For all industries at the South

32 | Southern Oregon Business Journal August 2020

Minimum Wage Rises on July 1, Reaching $11.50 per Hour at the South Coast

Coast, about 40 percent of total records come from employment that exists in the county, but is initially reported from a headquarters company located elsewhere.

These estimates show about two-thirds of total South Coast minimum wage jobs are in two industries – leisure and hospitality and retail trade – with about 1,020 jobs in leisure and hospitality and

about 450 jobs in retail trade paying minimum wage in 2019. Other industries with the most minimum wage job were local government (290) and health care and social assistance (290).

Minimum wage jobs make up about 19 percent of all leisure and hospitality jobs and about one out of 10 retail trade and information industry jobs.

As some of the industries impacted by the COVID-19 pandemic are also industries with many minimum wage jobs, including retail trade and leisure and hospitality, next year’s data will reveal how the pandemic has impacted employment by wage level, including the number of jobs paying minimum wage.

Southern Oregon Business Journal August 2020 | 33

COVID-19

by OFFICE OF THE DIRECTOR Oregon Health Authority

A

Statewide Mask, Face Shield, Face Covering Guidance as of July 24, 2020

Photo by Ani Kolleshi on Unsplash

pplicability: This guidance applies statewide to:

• All businesses, as defined below, and to the general public when visiting these businesses.

• The general public when visiting indoor spaces open to the public.

• The general public when outdoors, when at least six (6) feet of distance cannot

34 | Southern Oregon Business Journal August 2020

be maintained between others outside of an individual’s household.

Effective date: July 24, 2020 Requirements for other businesses and sectors: There may be mask, face shield, and face covering requirements and recommendations that apply to other businesses or sectors not listed in this

guidance. For a business or a sector that is not listed in this guidance, the other applicable sector guidance for mask, face shield, face covering requirements and recommendations should be reviewed. For purposes of this guidance the following definitions apply: • “Business” means: ▪ Grocery stores ▪ Fitnessrelated organizations ▪ Indoor and outdoor

entertainment facility operators (zoos, museums, drive-in movie theaters, raceways and outdoor gardens) ▪ Outdoor recreation organizations ▪ Pharmacies ▪ Public transit agencies and providers ▪ Personal services providers ▪ Restaurants, bars, breweries, brewpubs, wineries, tasting room and distilleries (applies to both indoor and outdoor spaces) ▪ Retail stores, shopping centers and malls ▪ Ride sharing services ▪ Phase Two counties only: » Indoor and outdoor licensed swimming pool, licensed spa pool and sports court operators » Indoor and outdoor entertainment facility operators » Indoor and outdoor recreational sports operators for specified sports » Indoor and outdoor venue operators ▪ “Face covering” means a cloth, paper, or disposable face covering that covers the nose and the mouth.

▪ “Face shield” means a clear plastic shield that covers the forehead, extends below the chin,

and wraps around the sides of the face.

▪ “Fitness-related organizations” include but are not limited to gyms, fitness centers, personal training, dance studios, and martial arts centers.

▪ “Indoor spaces open to the public” include indoor spaces, whether publicly owned or privately owned, where the public has access by right or invitation, express or implied, whether by payment of money or not.

In addition to the public areas of the businesses defined above, such spaces may include, but are not limited to, building lobbies or common spaces, elevators, bathrooms, and buildings or meeting rooms outside of private homes where people gather for social, civic, cultural or religious purposes.

▪ “Mask” means a medical grade mask.

▪ “Personal services providers” means barber shops, hair salons, esthetician practices, medical spas, facial spas and day spas, non-medical massage therapy services,

nail salons, tanning salons, and tattoo/piercing parlors.

Businesses A business and a person responsible for indoor and outdoor spaces open to the public are required to: • Require employees, contractors, volunteers, customers and visitors to wear a mask, face shield, or face covering, except as follows: ▪ Employees, contractors and volunteers: Masks, face coverings or face shields are not required when at or in a location where the employee, contractor or volunteer does not have a job that requires interacting with the public and at least six (6) feet of distance can be maintained between other people. ▪ Masks, face shields or face coverings are not required while eating or drinking. ▪ Customers and visitors: Masks, face shields or face coverings are not required when at a business or in an indoor or outdoor space open to the public and engaged in an activity that makes wearing a mask,

Southern Oregon Business Journal August 2020 | 35

Masks : Continued from Page 35

face shield or face covering not feasible, such as when swimming. • Provide masks, face shields, or face coverings for employees. • Provide for accommodations for employees, contractors, customers and visitors if such accommodations are required by: State and federal disabilities laws, if applicable, including the Americans with Disabilities Act (ADA) which protects people with disabilities from discrimination in employment and requires employers to engage in the interactive process for accommodations. ▪ State or federal labor laws. ▪ State and federal public accommodations laws that provide all persons with full and equal access to services, transportation, and facilities open to the public. ▪ OHA public health guidance if applicable.

Post clear signs about the mask, face shield, or face covering requirements.

A business and a person responsible for indoor and outdoor spaces open to the public should, but are not required to: • Provide, 36 | Southern Oregon Business Journal August 2020

at no cost, at least disposable face coverings for customers and visitors who do not have one. • Post signs about the mask, face shield, or face coverings requirement in languages that are commonly spoken by customers and visitors.

Educate employees: ▪ On how to safely work and communicate with people who cannot wear masks, face shield, or face coverings. ▪ That they may need to remove a mask or face covering while communicating with an individual who needs to read lips or see facial expressions to communicate.

The Public Customers and visitors of businesses and of indoor and outdoor spaces open to the public are required to: • Wear a mask, face shield, or face covering unless the individual is under fi ve (5) years of age, except as follows: ▪ Masks, face shields or face coverings are not required while eating or drinking. ▪ Masks, face shields or face coverings are not required

when at a business or in an indoor or outdoor space open to the public and engaged in an activity that makes wearing a mask, face shield or face covering not feasible, such as swimming. Individuals who have a medical condition that makes it hard to breathe or a disability that prevents the individual from wearing a mask, face shield or face covering can request an accommodation from the business or indoor/ outdoor space operator to enable full and equal access to services, transportation, and facilities open to the public. Customers and visitors of businesses and of indoor and outdoor spaces open to the public between the ages of 0 and 12 years old: • Children under the age of two (2) are not required to wear a mask, face shield, or face covering.

It is strongly recommended that children between two (2) and five (5) years of age, wear a mask, face shield, or face covering at all times in all indoor and

What COVID-19 means for energy efficiency in Oregon

outdoor spaces open to the public, particularly in places where it is likely that physical distancing of at least six (6) feet from other The impacts of COVID-19 on Oregon’s energy-ef;iciency industry could be felt long after the pandemic is under control. individuals outside their household unit cannot be That’s according to Energy Trust Executive Director Michael Colgrove, who was the featured speaker in a webinar this week hosted by the Association of maintained, and where Energy Services Professionals. vulnerable people may go.

Colgrove described how the state’s stay-at-home order, phased reopening and • Because children continuing economic uncertainty have affected Energy Trust’s customers and between the ages of two network of trade ally contractors.

(2) and 12 years of age can Among residential customers, those with the highest energy burdens have have challenges wearing a been the hardest hit, as have certain business sectors including hospitality, retail and restaurants. mask, face shield, or face covering properly (e.g., With capital projects and investments on hold, the hit to Oregon’s clean energy excessively touching the workforce has been severe. Nearly 10,000 clean energy jobs were lost through May, about 16% of the state’s clean energy workforce, according to BW face covering, not Research Partnership. changing the face covering In a survey by Energy Trust, trade ally contractors said their top concerns if visibly soiled, risk of were inability to bring in new projects, followed by construction and strangulation or permitting delays and worker safety. suffocation, etc.) we urge “Contractors see (Energy Trust’s cash) incentives to stimulate the energythat when masks, face ef;iciency market as critical in sustaining their businesses and helping them recover,” said Colgrove. shields or face coverings are worn by this age Looking ahead, he predicted prolonged social distancing and an economic downtown would continue to challenge the industry. Residential customers group, that they be worn may be less willing to invest in energy-ef;iciency upgrades, while businesses with the assistance and could see more layoffs and closures. close supervision of an Still, he said, there may be opportunities to promote the bene;its of clean adult. Masks, face shields, energy amid other transitions. or face coverings should Entertainment, hospitality, food service and tourism industries may need to never be worn by Energy children Trust of Oregon offers cash incentives to help make energy-saving make infrastructure changes to adjust to lower customer densities, for equipment upgrades more affordable for your business. when sleeping. Individuals instance. Widespread adoption of remote working could affect historical utility loads and drive innovation.

For aand limited-time, Energy Trust is offering bonus incentives to Oregon business fi ve (5) years of age customers. Visit energytrust.org/commercial/bonuses for more details. older must wear a mask, And energy ef;iciency and renewable energy could provide much need savings for a variety of customers looking to enhance their ;inancial outlook. face shield or face covering when outdoors “This is the sort of future Energy Trust is planning for,” said Colgrove. “The READY TO SAVE? WE HAVE SOLUTIONS. bene;its of ef;iciency investments have a role to play in helping people, when at least six (6) feet of Visit www.energytrust.org/ExistingBuildings or call 1.866.605.1676. businesses and communities recover. Energy ef;iciency is always a good physical distance Serving from customers of Portland General Electric, Pacific Power, investment, and now so more than ever.”

NW Natural, Cascade Natural Gas and Avista. others outside of the h"ps://blog.energytrust.org/what-covid-19-means-for-energy-efficiency-in-oregon/ individual’s household, cannot be maintained.

WHEN EVERY DOLLAR COUNTS, WE’RE HERE TO HELP YOU SAVE.

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Southern Oregon Business Journal August 2020 | 37 24097_EnergyTrust_June2020_Southern_ORBusJournal_Ad_4-875x7-375_v2.indd 1

7/7/20 2:10 PM

EMPLOYMENT

by Brandon Schrader Workforce Analyst OREGON EMPLOYMENT DEPARTMENT

C

OVID-19 rapidly spread across the United States and forced a patchwork of shutdowns that reduced business activity in order to save lives. Oregon is no exception as the “Stay

38 | Southern Oregon Business Journal August 2020

Who Can’t Work From Home During a Global Pandemic?

Home, Save Lives” executive order was put into effect on March 23rd which enforced social distancing rules. While essential workers continued to brave the frontlines and millions of Americans were newly unemployed, a large

portion of Oregon’s labor force has been working from home. The flexibility to work from home transformed from a highly sought-after benefit for employees to a coping mechanism for

businesses to weather COVID-19.

While factors like government action and suppressed consumer spending habits also impact employment, telework has helped insulate a few industries from the effects of COVID-19. Sectors like information or finance don’t require much specialized equipment, industrial capital, or in-person experiences. As such, employees are able to continue helping customers.

On the other hand, an industry like automotive manufacturing requires special equipment to build a car that can’t be taken home.

Access to telework and its benefits are far from equally distributed. Remote work is heavily stratified by industry and geographic area. To a degree, the root of access discrepancies are occupational type and educational attainment.

However, much like the health effects of COVID-19, data suggests that marginalized groups like low-wage earners, individuals with less education, and Black

communities have the least opportunity to telecommute.

Understanding what demographics couldn’t work from home may offer some insight into who COVID-19 has disproportionality impacted and what sectors should be bracing for a possible second wave.

Adapting to COVID-19: What Tasks Can Be Done From Home?

Faced with few options, organizations who could shift to remote work did as a means to survive COVID-19. While only 8 percent of the American workforce telecommuted prior to the outbreak, more than half of workers were working from home in mid-May. Businesses that offered remote work may have been better positioned to adapt with social distancing policy.

The ability to work from home stems from company culture, a job’s primary functions, and how customers receive goods or services. While workplace culture is malleable, especially under extenuating circumstances like a global

pandemic, shifting the primary function of a job and service delivery is challenging.

To get a sense of whether or not a job could feasibly be done at home, a study from the University of Chicago examined “work context and generalized work activities” from the Occupational Information Network (O*NET). The surveys asked if there was frequent contact with customers, in-person experiences, or specialized equipment. Each of these factors limit an employee’s ability to work remotely.

Jobs were given a ranking based on responses which helped determine if none, part, or all of a position could be done at home.

According to the study, 37 percent of occupations in the United States could realistically be done from home.

Vast Gaps in Remote Work Between Occupations Cities are sometimes defined by their business community: San Francisco and Silicon Valley or New Southern Oregon Business Journal August 2020 | 39

Employment : Continued from Page 39

York and Wall Street are great examples. A little closer to home and you have “Silicon Forest” in the BeavertonHillsboro area.

Breaking this down further, businesses are made up of different shares of occupations.

Someone would expect a high number of computer-related jobs in an information-focused business like Apple or Google. If we assume the national estimates on the share of workers who can telecommute roughly approximate Oregon, we can learn about our workforce and who can (and can’t) telecommute.

While 100 percent of employees in computer and mathematical occupations were able to work from home only 1 percent of those in building and grounds cleaning and maintenance could telework.

From another perspective, 40 | Southern Oregon Business Journal August 2020

there are more employees in computer and mathematical occupations who can work from home than the bottom 11 industries combined.

Over half of all the workers in Oregon who could potentially telecommute are in the five occupation groups with the best access to telework: computer and mathematical; educational instruction and library; legal; business and financial operations; and management. The presence of these occupations in different places and industries begins to tell a story of who can and can’t work from home.

Industries with the Least Telework Access Faced Steep Job Losses The building blocks of a business and an industry are the occupations within it.

Unsurprisingly then, wide gaps in telework exist between sectors. For instance, while 83 percent of jobs in educational services could feasibly be done from home, just 4 percent of positions in accommodation and food services had access to remote work. A gap of almost 70 percentage points. To put this in perspective,

accommodation and food services employed five times as many Oregonians as educational services prior to social distancing efforts. Yet, about 29,000 education jobs could potentially be done at home compared with only 7,200 in accommodation and food services.

Unsurprisingly, accommodation and food services accounted for 40 percent of job losses between March and April

2020. Again, teachers and other public employees may face cuts in the future, but it still suggests that remote work may have staved off some initial declines.

Industries split evenly around the national average of jobs with potential access to remote work at 37 percent – eight above and eight below. The quarter of a million jobs lost from March

to April 2020 is a different story. Job losses were highly concentrated in sectors with below average access to telework options. Those sectors with less access to telework accounted for 60 percent of the pre-COVID-19 workforce, yet they made up 83 percent of job losses between March and April 2020. Conversely, industries with above average telecommuting access were vastly underrepresented in Southern Oregon Business Journal August 2020 | 41

Employment : Continued from Page 41

initial job losses. While those sectors made up 36 percent of the state’s employment in March 2020, they only made up 12 percent of monthly job losses.

Oregon Metro Areas Vary Greatly in Telework Access The composition of local businesses has major ramifications on the share of individuals who can work 42 | Southern Oregon Business Journal August 2020

from home which results in a split amongst U.S. cities.

Places like San JoseSunnyvale-Santa Clara, CA (part of Silicon Valley) had the largest share of employees who could telework at 51 percent followed closely by Washington D.C. at 50 percent. Both metro areas have high concentrations of information and finance sectors. Las Vegas, NV and Fort Meyers, FL are common

tourist destinations and tied for the smallest share of jobs that could be done at home with less than 25 percent.

These are sobering figures.

At best, half of workers still can’t realistically do their job from home.

Oregon follows a similar pattern. Corvallis MSA led the pack with 40 percent of jobs that could viably be done from home followed

closely by Portland at 39 percent. Only 27 percent of jobs in Albany were telework compatible. The divide between industries can help explain why these gaps exist.

These local business communities are fairly different. Both Portland and Corvallis have robust finance, information, and professional service industries which have some of the best remote work potential. Some of Albany’s most prominent sectors are

manufacturing and retail trade, neither of which have more than 25 percent of jobs with telework access.

Across the board, Oregonians who could telecommute took home a larger share of wages than those who couldn’t. In Portland, 39 percent of jobs could be done from home yet they brought in 48 percent of all wages.

Differences in the share of

employment and wages were wider in areas with higher telework compatibility. As access to remote work declined, the gap between share of employees who could telework and share of wages also decreased. Most of Oregon’s metro areas had a smaller difference between the share of employment and wages compared with the United States average of 9 percentage points. In the U.S., 37 percent of jobs

Southern Oregon Business Journal August 2020 | 43

Employment : Continued from Page 43

could be done from home while they accounted for 46 percent of wages.

Regardless, high earners tend to have better remote work options, leaving lowwage workers vulnerable to financial loss.

Access to Telework Options Divided by Education and Race A pre-COVID-19 survey from the U.S. Bureau of Labor Statistics examined who had 44 | Southern Oregon Business Journal August 2020

the option to work from home by several demographics. Divides fell sharply along education and racial lines. A far greater number of Americans with at least a bachelor’s degree or higher had the option to work from home than any other education category.

White Americans had far more remote work flexibility than Black and Hispanic or Latino communities. For education, 52 percent of employees with a bachelor’s degree or higher were able

to work from home whereas only 4 percent of those with no high school diploma could telecommute. Even those who had an associate’s degree or some college had poor access to remote work – less than a quarter of workers could telework.

Assuming these national figures roughly reflect Oregon, only 204,000 workers without a bachelor’s degree had the option to work remotely, despite these workers making up 62

percent of the labor force.

Worse yet, three out of four of those workers had at least some college or an associate’s degree. However, the number of Oregonians with a four-year degree or higher and access to telecommuting options towered over the combined total of all other education categories. More than 365,000 Oregonians with a bachelor’s degree or higher likely had access to work from home, yet the group only accounts for 38 percent of employment.

The racial gaps in access to telework are troubling. Asian Americans had the best telecommuting options with 37 percent of respondents saying they could work from home. After that, about 30 percent of white Americans reported having the option to work from home which is slightly above the national average of 28 percent. A steep drop occurs for both Black and Hispanic or Latino communities. By far, these groups of people had the least access to telecommuting options. Just over 16 percent of Hispanic and Latino individuals said

they could work remotely; Black individuals had slightly better access at 19 percent.

A lack of telework options in the midst of a global pandemic is incredibly unfair and harmful, but is unfortunately unsurprising.

Black and Hispanic workers make up about 30 percent of our national labor force, but are underrepresented in industries with the best access to telecommuting.

Finance, education, and information sectors all have far less than 30 percent of their workforce made up of Black and Hispanic workers.

Further exacerbating this trend, Black and Hispanic workers are overrepresented in some of the hardest hit industries like accommodation and food services or health care and social assistance. Not only are Black and Hispanic communities facing a disproportionate share of COVID-19 cases, but also they have the least ability to socially distance.

Conclusion As COVID-19 cases continue to climb in Oregon and around the United States, people face an uncertain economic future. If Oregon follows the path of California, New York, or several other states, more aggressive social distancing efforts may be reinstated. Of course, public health policy is designed to save lives and has been incredibly successful in other countries.

Nevertheless, opportunity costs exist and those costs are distributed disproportionately. It’s likely that industries like accommodation and food services or retail trade will be hit hard if those safety measures are necessary. We know that individuals who are Black or Hispanic, earn less, and have the least education have the worst access to remote work. For these sectors and workers, social distancing and telecommuting aren’t an option. As leaders design policy in response to COVID-19, it’s crucial that the 63 percent of workers who can’t work from home are protected.

Southern Oregon Business Journal August 2020 | 45

BANKING

Special Insert on People’s Bank Disclosure - Southern Oregon Business Journal Publisher Jim Teece Proudly Serves on the People’s Bank Board

People’s Bank Prepares For Transition In Executive Leadership

Back row: (L to R)Steven R. Erb, Chief Strategy Officer, Ken Trautman, Co-Founder / Chief Executive Officer, Bill Stewart, President Steelhead Finance Division, John A. Boyd, Chief Credit Officer

Front Row:(L to R)Julia Beattie, President / Chief Lending Officer, Lindsey Trautman, Chief Financial Officer, Jeri A. Reno, Chief Operating Officer

A

fter more than 20 years, People’s Bank executive management undergoes a transition in leadership due to the recent retirement of the former Chief Financial Officer Russ Milburn and to prepare for the future retirement of its current Chief Executive Officer Ken Trautman, Chief Operating Officer Jeri Reno and Chief

46 | Southern Oregon Business Journal August 2020

Credit Officer John Boyd.

All are located at its corporate branch at 1528 Biddle Road in Medford.

Two recent promotions of Julia Beattie to president and Lindsey Trautman to chief financial officer are significant steps in passing the torch, which has been under Mr. Trautman’s

direction since the bank’s inception in 1998.

“People’s Bank began planning for the retirement of four of our executive officers many years ago and we are very pleased to begin that process with the promotion of both Julia and Lindsey,” commented Ken Trautman, People’s Bank’s CEO. “They

understand the culture of People’s Bank and are prepared for their new positions. We are fortunate to have such smart and talented professionals at the bank who can seamlessly transition into these positions.”

In May, Ms. Trautman took over the position as the bank’s CFO following the retirement of the bank’s former CFO, Russ Milburn, who served since 2007.

Julia Beattie was recently promoted to president and will be working alongside Mr. Trautman who will retain the role of chief executive officer for the bank until his retirement within the next few years.

Ms. Beattie began her banking career in 1991 at Union National Bank of Texas. After moving to Oregon in 1992, she joined the lending team at Western Bank (headquartered in Medford, OR) where she worked until 2000. In 2003 she went to work for South Valley Bank and Trust (headquartered in Klamath Falls, OR) until joining People’s Bank in 2013.

Ms. Beattie graduated from Baylor University with

a Bachelor of Business Administration degree in 1984 and a Master of Business Administration from the University of Texas in 1986. In 2018, she graduated with honors from the Pacific Coast Banking School.

As People’s Bank’s planned CEO successor, Ms. Beattie will work to build on the bank’s past success. “People’s Bank has a five year strategic plan to grow and diversify our bank to continue to be a strong, viable, sustainable community bank supporting local businesses,” she said.

A Rogue Valley native, Ms. Trautman has held various positions at the financial institution including credit analyst, accounting specialist, accountant, and most recently controller before earning the position as chief financial officer.

In 2017, Trautman earned a Financial Managers School certificate from the Graduate School of Banking and University of

Wisconsin. She graduated with honors from the University of Colorado’s Graduate School of Banking in 2014, and received her Bachelor of Science degree, Summa Cum Laude, from Southern Oregon University in management accounting.

Mr. Trautman was founder and president of People’s Bank from 1998 until 2008, when he succeeded as president and CEO, after Mike Sickels retired.

Formerly, Mr. Trautman worked with Western Bank as senior vice president and regional administrator for Southern Oregon, before it was purchased by Washington Mutual in 1996. He has been instrumental in leading People’s Bank from $27 million in assets in 2000 to $494 million at June 30, 2020.

Aligning with the bank’s mission, Mr. Trautman, Ms. Beattie and Ms. Trautman all serve various charitable and community organizations.

Southern Oregon Business Journal August 2020 | 47

BANKING

Special Insert on People’s Bank Disclosure - Southern Oregon Business Journal Publisher Jim Teece Proudly Serves on the People’s Bank Board

Education / Community / Career Timeline 1984 Baylor University - Bachelor of Business Administration with a concentration in Economics and Finance 1986 The University of Texas - Finance MBA 1991 Union National Bank of Texas 1992 Moved to Southern Oregon 1993 Western Bank - Commercial Lending Officer & Branch Manager 1997 Joined the Central Point Rotary (President-Elect 7/21 – 6/22) 2000-2003 Moved to the bay area Ran a Helicopter Company with her husband 2003 Moved back to the Rogue Valley South Valley Bank and Trust 2010 Gordon Elwood Foundation Grant Committee 2012 Gordon Elwood Foundation Board of Trustees currently serving as Chairman of the Board 2013 Peoples Bank - Joined in July - Vice President/Commercial Lending Officer Promoted to Sr. Vice President/Commercial Lending Mgr. September 2013 2017 Mt. Ashland Association Board of Directors 2018 Graduated from Pacific Coast Banking School Promoted to Executive Vice President/Chief Lending Officer 2020 Promoted to President of People’s Bank

48 | Southern Oregon Business Journal August 2020

Meet Julia Beattie - The New President of People’s Bank

Banking is in her Bloodline.

Banking is a significant part of her family’s history.

Her grandfather started Muenster State Bank in Texas in 1923. He was president of the bank for 28 years, her uncle Henry later served as president for several years with his son, her cousin, stepping into the role in 1997. Her father served on the bank board for a number of years and so did her brother.

She is proud of the work the bank has done in the communities they serve and saw first hand as she was growing up how a community bank can make a direct impact not only in the businesses they serve but the larger community as well.

Julia and her husband ran a helicopter company.

From 2000 to 2003, Julia and her husband, Brian, had the opportunity to relocate to the San Fransisco Bay Area and run a helicopter company together.

From this experience, she gained great insight into the stress and pressure small business owners operate under and a deep appreciation for their tenacity and spirit. She attributes her understanding to what a small business owner faces every day to this experience and it helps guide her as she works with business owners today at the bank.

Julia is very involved in the community.

Even prior to joining People’s Bank she was serving on local non-profit boards and continues to serve as a leader on them today. She saw the direct impact her grandfather made in his community service and has carried on the tradition of bringing her skills, talents and passion to organizations that serve everyone in Southern Oregon.

Julia loves Southern Oregon She moved to the Rogue Valley in 1993 from Texas and left only once in 2000 to run a company in the Bay Area with her husband, but they both found their way back in 2003 and have never looked back. She loves the work she does and people she works with. She also loves to ski and hike with her family (daughters Audrey & Elizabeth and son John). She and her husband both feel southern Oregon has been a wonderful place to raise their family.

Southern Oregon Business Journal August 2020 | 49

BANKING

Special Insert on People’s Bank Disclosure - Southern Oregon Business Journal Publisher Jim Teece Proudly Serves on the People’s Bank Board

Choosing your Replacement

Julia Beattie, President / Chief Lending Officer, and Ken Trautman, Co-Founder / Chief Executive Officer

I reached out to Ken Trautman, Co-Founder, CEO and Original President to ask him a couple of questions about the process, what challenges he thinks she will face and what he will be able to focus on now.

JET

50 | Southern Oregon Business Journal August 2020

What brought you to this decision?

It was important to me that we selected an individual for my future replacement

who had the ability to make tough decisions when needed but has an equal amount of compassion to first consider the effect of

those decisions on our employees, our community and our shareholders.

background, she has shown she is willing to make the tough decisions that are sometimes required. She has a great ability to generate, verbalize and then get support of her vision of what needs done to achieve that vision.

She is hard working, considerate and focused, but still able to change direction if the situation calls for it.

What challenges do you think she will face in the near future?

Julia has proven to me that she meets these qualifications completely.

She not only is a good banker with a strong credit

She will be taking over from one of the original founders of the bank, who has had over 22 years to select the people, systems and style that seemed appropriate for that specific time

in the banks history. Julia will need to make changes, and sometimes change can be hard on those who must adhere to it.

She will be leading the bank in a very uncertain time emotionally and economically.

The bank is no longer a little bank, but is growing and changing. Developing her leadership team, as new positions become available, due to retirements, will be fun but challenging.

What is your vision for the bank in the next 5 years now that you can focus 100% on strategy?

The banks strategic plan laid out two primary scenarios over the next 3 to 5 years, continued growth in noninterest income and organic and/or merger growth primarily centered around geographic diversity.

My new position will allow me more time to focus on those opportunities.

Southern Oregon Business Journal August 2020 | 51

BANKING

Special Insert on People’s Bank Disclosure - Southern Oregon Business Journal Publisher Jim Teece Proudly Serves on the People’s Bank Board

People’s Bank Promotes Lindsey Trautman To Chief Financial Officer

Starting as a loan assistant at People’s Bank in 2005, Trautman has held various positions at the financial institution including credit analyst, Lindsey Trautman, EVP/Chief Financial Officer accounting eople’s Bank of specialist, accountant, and Commerce is proud to most recently controller announce the before earning the position promotion of Lindsey as chief financial officer.

Trautman as its chief financial officer at its “Lindsey has been training corporate branch located at for the role for several years 1528 Biddle Road in now,” says Ken Trautman, Medford.

People’s Bank’s president and CEO. “We are fortunate A Rogue Valley native, to have such a smart and Trautman took over the talented professional at the position on May 2, 2020, bank who can seamlessly following the retirement of transition into the position.” the bank’s former CFO, Russ Milburn, who served since 2008.

P

52 | Southern Oregon Business Journal August 2020

Trautman’s dedication to the Rogue Valley community is strong. Among her community service, she is currently secretary for the People’s Bank of Commerce Foundation, a past vice president, treasurer and board member of the Greater Medford Rotary, and D9 Foundation board member and auction chair.

In 2017, Trautman earned a Financial Managers School certificate from the Graduate School of Banking and University of Wisconsin.

She graduated with honors from the University of Colorado’s Graduate School of Banking in 2014, and received her Bachelor of Science degree, Summa Cum Laude, from Southern Oregon University in management accounting.

In her spare time, Trautman enjoys her family, hunting, camping, crafting and reading.

BANKING

Special Insert on People’s Bank Disclosure - Southern Oregon Business Journal Publisher Jim Teece Proudly Serves on the People’s Bank Board

P

eople’s Bank of Commerce (OTCBB: PBCO) announced on 7/22/2020 its financial results for the second quarter and year-to-date 2020.

The bank reported net income of $1,385,000 or $0.39 per basic and diluted share for the second quarter of 2020, compared to net income of $933,000 or $0.30 per share in the same quarter of 2019.

People’s Bank year-to-date Earnings per Share Increase 24%

balance of this year based on the continued low home loan rates.”

loans) to 1.46% at the end of the second quarter 2020, compared to 1.12% for the same period in 2019.”

Provision for Credit Losses Non-Interest Income Mr. Trautman continued, “Credit quality

For the quarter ending June 30, 2020, non-interest income was $2.1 million compared to $1.7 Balance Sheet June 30, 2020 versus June 30, million in the same quarter one 2019: year earlier. For the first half of • Total Loans increased 37%, PPP loans Earnings for the first six months of 2020, non-interest income was accounted for 94.8% of the total increase 2020 totaled $2,496,000 or $0.72 $4.0 million compared to $3.2 • Total Deposits increased 28% per share compared to $1,772,000 million year-to-date in 2019. The or $0.58 per share during the first bank’s Steelhead Finance • Total Assets increased 38% half of 2019.

Division generated $1.8 million • Total Equity increased 30% in non-interest income during Earnings per diluted share for the • Year to Date Return on Average Assets as of the first half of 2020, compared trailing 12 months ending June 30, June 30, 2020 was 1.17% to $2.1 million in the same 2020 were $1.46 per share • Year to Date Return on Average Equity as of period the prior year, a direct compared to $1.21 one year earlier.

June 30, 2020 was 10.88% result of the economic slowdown caused by the CEO’s Comments Income Statement year-to date June 30, 2020 COVID-19 pandemic. This “Total loans and deposits continued versus June 30, 2019: reduction in Steelhead income to grow through the first half of was completely offset by the 2020, at 37% and 28% respectively, significant increase in income • Net-interest Income before the provision for significantly aided by the Paycheck losses increased 9% generated by our Residential Protection Program (PPP),” stated Lending Division, which • Pre-tax income increased 40% Ken Trautman, bank CEO. “The Net produced $1.5 million in Interest Margin experienced • Non-interest Income increased 25% income during the first half of compression in second quarter, • Non-interest Expense decreased 4% 2020 compared to $471 resulting from the bank’s portfolio of thousand in income for the PPP loans originated during the same period last year. quarter with a 1% fixed interest rate,” remains strong with no loans past due explained Trautman. “The bank is also Non-Interest Expense over 90 days or on non-accrual at the end receiving strong income from our For the quarter ending June 30, 2020, of June 2020. Although problem assets residential mortgage lending division. non-interest expense was $3.5 million have not materialized as a result of the Residential mortgage opportunities are compared to $3.8 million in 2019. YearCOVID-19 pandemic, the bank has used expected to continue throughout the to-date non-interest expense totaled $7.3 its strong earnings to build its loan loss million through June 30, 2020, reserve for portfolio loans (excluding PPP Continued on Page 59 Southern Oregon Business Journal August 2020 | 53

BANKING

Special Insert on People’s Bank Disclosure - Southern Oregon Business Journal Publisher Jim Teece Proudly Serves on the People’s Bank Board

People’s Bank Founding Board Member, Bill Jacobs, Retires From the Board after 22 years of Service.

Bill and Carol Jacobs at People's Bank Christmas Party

By Jim Teece

I

remember Bill's last day on the board. We just finished our annual shareholder meeting via zoom, because of the pandemic. We went into a board session after the annual meeting and we each took turns saying something nice about Bill and thanking him for his service. It was very surreal.

54 | Southern Oregon Business Journal August 2020

I’m relatively new to the board and have only had the opportunity to get to know Bill through the board meetings, but I knew there was something more there, than the big smile and how I admired how he ran an efficient board meeting.

I reached out to him afterwards and asked him if I could interview him for the journal and we chatted for over an hour via zoom.

He was born in Glendale, California in 1939 and grew up in Arcadia, California. His family relocated to the San Francisco Bay Area when he was a junior in high school as his dad worked for a public utility corporation.

After high school, Bill attended the local college, Stanford*. He was going to get a medical degree but changed his mind when he

took organic chemistry and graduated instead with a degree in economics and industrial engineering. He met and married Carol in 1961 (Married 59 years in August). He also managed the Stanford Baseball team the same year. He stayed at Stanford and received his Finance MBA with a minor in Marketing and gives his wife credit for putting him through graduate school.

His family eventually relocated back to southern California as his father became CEO of Southern California Gas Company, but Bill stayed in the Bay Area to work for Ford in the Milpitas plant.

At one point during our chat, he explained how much everyone loved cars at the time and that it was just like in the movie, “Ford vs. Ferrari”. I had not watched the movie until after he told me about it, but I could imagine that Bill was one of the white dress shirt, black skinny tie, middle managers that were in many of the Ford office scenes.

Because his father worked for the same company for

44 years, Bill always thought that was what he was going to do, but he was enticed away after 5 years, from Ford and the Bay Area, by a business school friend with a position at a whollyowned, drug store division of the Jewel Tea Company.

He stayed with OSCO drug for 20 years, working his way up to executive vice president and responsible for all of the support services such as buying and distribution. Working in Illinois, he grew with them from 50 stores to over 650 stores in 26 states. The CFO reported directly to him and he managed during a time of extraordinary growth and profit. In the end, he parachuted out during a hostile takeover. That process gave Bill direct insight into the board and shareholders working through the takeover.

He landed at a small housewares startup in Southern California, with another friend from Stanford and after a year realized that he enjoyed the large company environment better.

He jumped at an opportunity to become the CFO of Pic ‘n’ Save, the second-largest retail closeout chain that grew from southern California to the South and Southwest markets before rebranding as MacFrugals and finally consolidating into Big Lots stores.

Bill worked through an internal proxy fight with institutional investors and the board and finally left the company.

He thought about retiring but somehow ended up as the CEO of another company with offices in Illinois and California that was a wholesale distributor of toys and stationery to drug stores like OSCO and Thrifty. He ran that until he wasn’t interested anymore and officially retired to Medford, Oregon.

He used to manage relationships with dealers back in his days with Ford and for a period of time, would fly to Medford and work with them and fly home late Friday. It was Southern Oregon Business Journal August 2020 | 55

during this time that he fell in love with the Rogue Valley. He thought that it was also convenient as both of his children (both of which also attended Stanford) lived on the west coast and Medford was about equidistant to both of them.

Of course, his children no longer live where they lived when he moved here and he laughed as he told me that “you can’t chase your kids” It was during this time of quiet retirement and model railroading, that he met Mike Sickels and Ken Trautman through a mutual acquaintance. They had just left Western Bank as it was acquired by Washington Mutual in 1996 and were looking to form a new kind of community bank. One that was going to be small and nimble and answer the phone with real people.

Bill became the first board member and served on the board for over 22 years. He tells stories of how in the beginning the office was in

56 | Southern Oregon Business Journal August 2020

a basement and how the board members used to take turns buying breakfast during meetings at the local diner. They raised 6 million dollars of local money to start the bank. He laughed at Mike and Ken when they told him they would be in the black in 13 months. He knew from his decades of experience that it takes at least 3 years. He laughed again, this time with them, as they celebrated the first month of profitability, exactly 13 months after they started.

but you can be a leader in everything you do and take experiences forward to each new chapter, and bring the bundle of all of your experiences to a board, of a local business, and make an even bigger impact in life for so many.

I saw Bill again about 6 weeks after our chat, at the company gathering where we surprised the staff with the announcement that the board had selected Julia Beattie as the new president for the bank. (See Page 48 - Meet Julia Beattie - The New President of People’s Bank)

He became chairman of the board after Mike Sickels lost his short battle with cancer in 2016.

Now that he has retired off the board of the bank, he will spend his time on the board at the Manor.

The hour we spent together was a whirlwind of memories. I logged off the meeting with a huge smile and excitement to share his story with all of you. I wanted you to know that your path through life may wander from coast to coast,

When Ken made the announcement, I looked over at Bill. He scanned the park-like setting and took in a deep breath while admiring all the people that ran the bank that he helped start and grabbed his wife's hand and smiled. * When I sent this story to Bill for fact checking he wanted me to know that “Stanford is more than a “local college”. The recent Wall Street Journal ranks Stanford University as the #1 University in the WORLD! It’s students come from all 50 states and a countless number of foreign countries.

This may not be worth correcting, but I thought I would point that out. “ I’m going to miss working with him.

Top: Bill and Carol Jacobs with 2 children & spouses and 6 grandchildren

Bottom: Bill Jacobs in home oďŹƒce.

Right Inset: Bill Jacobs - Manager of Stanford Baseball Team 
 (only one not in uniform)

Southern Oregon Business Journal August 2020 | 57

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58 | Southern Oregon Business Journal August 2020

People’s Bank Earnings from Page 53

compared to $7.6 million in the same period the prior year. Mr. Trautman explained, “The most significant item impacting non-interest expense during 2020 was salary expense, which decreased 5%, the result of operating efficiencies gained by improved digital platforms and centralization of duties, as well as expense offsets recognized from PPP processing fees.”

SouthernOregonBusiness.com

Capital As of June 30, 2020, shareholder’s equity totaled $49 million, compared to $38 million at June 30, 2019. Five million of the increase in shareholder equity was the result of the capital campaign completed in the first quarter of 2020, the balance was supported by bank earnings. The bank’s modified Tier 1 Capital Ratio, which excludes Paycheck Protection Program Liquidity Facility (PPPLF) advances, was 9.82% at the end of the second quarter 2020, compared to 9.61% one year ago.

Tangible Book value per share was $12.70 at June 30, 2020, compared to $10.91 on June 30, 2019.

About People’s Bank of Commerce People’s Bank of Commerce’s stock trades on the over-the-counter market under the symbol PBCO. Additional information about the Bank is available in the investor section of the bank’s website at: www.peoplesbank.bank.

Founded in 1998, People’s Bank of Commerce is the only locally owned and managed community bank in Southern Oregon. People’s Bank of Commerce is a full service bank headquartered in Medford, Oregon with branches in Medford, Ashland, Central Point, Grants Pass and Klamath Falls.

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Southern Oregon Business Journal August 2020 | 59

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Job Well Done! Bill Jacobs. - Read about Bill’s Amazing Career Path and Celebrate his Retirement after 22 years Service on the People’s Bank Board. - Page 54

“Bill was part of the dream of People’s Bank before we had any employees, before we had a building, before we were authorized to start a bank by FDIC and the State. His determination and confidence got us through the last 22 years which include three recessions, including our current one. He saw the bank grow from our initial investment of $6 million to our current size of $500 million. I would say, job well done, Bill Jacobs.”

— Ken Trautman, Co-Founder / CEO People’s Bank

“In all my time on the Board, I never saw Bill without a smile on his face and a kind word to say. He did an outstanding job as Chair of the PBOC board, always ensuring that every voice was heard. His presence is already missed.”

— Roy Vinyard, People’s Bank Board Chair