The Portland-Vancouver area's dropped one-tenth of a percentagepoint from June to 4%, according to the Oregon EmploymentDepartment's monthly report. The unemployment rate remained lowerthan the state's rate of 4.7 percent and the nation's rate of 4.2percent.

Total nonfarm jobs in the Portland metro area dropped by 4,500to 963,400. The service sector added 1,900 net jobs, gaining 2,400in business services, which includes temporary staffing, and losing1,100 in private education.

State economists warn that layoffs in the transportationequipment industry will weaken growth in future months. Earlierthis week, Freightliner announced it will lay off 770 workers inPortland.

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