The rate rose from 6.9 percent in July to 7.2 percent in August.
State Economist Nick Bielichicks says more college graduates and discouraged workers are looking for work.
"Oregon's unemployment rate didn't increase because more Oregonians lost thier jobs, rather Oregon's rate grew because more people than usual were looking for work and when the labor force growth is greater than the nubmer of jobs created, the unemployment rate will go up until entrants can find work."
In August, Oregon added 2900 jobs and that was the 12th increase in the last 14 months.
In the last year, Oregon has added nearly 41-thousand jobs.