For the first time in years, Ohio’s economy seems to be outpacing the national average.
Employers added more than 11,000 jobs last month, sending the statewide unemployment rate down from 5 percent to 4.8 percent, according to a Friday report from the Ohio Department of Job and Family Services. That’s below the national rate of 4.9 percent and the state’s lowest rate so far this year.
George Zeller, a Cleveland-based economic researcher, said July was the first month in more than 3½ years that Ohio’s job creation outpaced the national average.
Mr. Zeller said the state had been in the midst of a 43-month streak in which year-over-year job growth lagged the country as a whole.
“It is clear in the newly released data that Ohio is finally recovering from the very deep and lengthy 2000s recession in the state’s labor market and has now finally (albeit barely) recovered from the extremely deep and damaging 2007 Great Recession,” Mr. Zeller wrote in his monthly report on the state’s jobless figures.
The state job agency said employers added 11,400 jobs in July, with the biggest gains coming from the government and educational and health services sectors. The manufacturing sector also posted gains.
Mekael Teshome, an economist with PNC Financial Services Group, said the July jobs report was good, if not exceptional.
“That seems to be the consistent story that we’ve been getting each month. We’ve got a broad base for growth here in Ohio, and that’s encouraging. A lot of our key industries are adding jobs,” he said.
Over the last 12 months, officials said statewide employment has increased by 78,800.
Though local unemployment estimates won’t be out until next week, area workforce development officials said the fact that Ohio’s rate is falling should bring good news.
“That’s a great number,” said Mike Veh, Lucas County’s director of business and workforce services. “What that means locally is probably we’re going to see a little tick downward again for us too.”
One thing that’s been especially encouraging for Mr. Veh has been the news that Dana Inc. plans to open a new parts manufacturing plant here and that a number of other automotive suppliers are also interested in the area. As more experienced workers move into those jobs, it could create openings for entry level factory work that those workers held, he said.
Mr. Veh said overall he’s pleased with what’s happening in the greater Toledo area.
“I’m seeing a lot of great things going on,” he said. “A lot of focus on downtown development, a lot of interest in companies that are setting up shop in this area. We haven’t had any major layoffs in quite some time that I’m aware of. Things are, I think, moving in the right direction.”
There have been some encouraging signs that more Ohioans are getting back into the work force, though that trend did reverse itself in July. Over the last 12 months, the total civilian labor force — those working or actively searching for work — has grown by 97,000 people. That’s in spite of a big 27,000 worker decrease in the July civilian work-force numbers.
As the economy continues to get better Mr. Teshome expects the labor force participation rate to rise, though demographic shifts in Ohio likely mean it will trend downward in the long term.
By: Tyrel Linkhorn (The Blade).
Photo: The Wall Street Journal.
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
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