Avakian was first appointed Oregon's commissioner of labor and industries by Governor Ted Kulongoski on April 8, 2008, following the resignation of Dan Gardner. He was elected to a full term in office on November 4, 2008. He won re-election in the general election on November 6, 2012. Since the term beginning in 2012 was only two years, Avakian ran for his second full term as commissioner in 2014 and won the election unopposed. He did not seek re-election in 2018.

Avakian served in the Oregon House of Representatives from 2002 to 2006 and in the Oregon State Senate from 2006 to 2008.