Ohio Labor Market Trends: Employment Growth & Unemployment Rates Analysis

Ohio Labor Market Legislative Budget Office lsc.ohio.gov lsc.ohio.gov

Ohio employment growth rebounds from COVID-19 pandemic, but slower than the national pace Ohio and United States Employment Growth Rates 6% 4% 2% 0% -2% -4% -6% -8% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 U.S. Ohio Source: U.S. Bureau of Labor Statistics After the decline caused by the COVID-19 pandemic in 2020, both Ohio and the U.S. showed a recovery in employment growth rates. Except for 2010-2012, the pace of employment growth in Ohio trailed behind the national average and continues in the post-pandemic era. Over the past three years, the average employment growth rate was 2.2% in Ohio and 3.2% in the U.S. lsc.ohio.gov lsc.ohio.gov Legislative Budget Office

Ohios unemployment rate has been falling recently, largely mirroring the U.S. rate Ohio and United States Average Annual Unemployment Rates 12% 10% 8% 6% 4% 2% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 U.S. Ohio Sources: Ohio Labor Market Information; U.S. Bureau of Labor Statistics Ohio s average annual unemployment rate has declined in recent years, spiking to 8.2% in 2020 and falling to 3.5% in 2023; corresponding U.S. figures were 8.1% and 3.6%. In 2023, Ohio s unemployment rate was at its lowest point in 48 years of recorded history. Between 2004 and 2023, the annual unemployment rate averaged 6.2% in Ohio and 5.9% in the U.S. lsc.ohio.gov lsc.ohio.gov Legislative Budget Office

Ohio has a large labor market and a middling unemployment rate compared to neighboring states Ohio has a larger labor force than neighboring states except Pennsylvania. Ohio s unemployment rate in 2023 was higher than Indiana and Pennsylvania, but lower than other neighbors. Comparison of 2023 Labor Market Indicators Unemployment Rate Civilian Labor Force Participants (in thousands) State Ohio 3.5% 5,787.0 Indiana 3.3% 3,401.4 Kentucky 4.2% 2,026.3 Michigan 3.9% 5,007.9 Pennsylvania 3.4% 6,518.3 West Virginia 3.9% 785.6 lsc.ohio.gov lsc.ohio.gov Legislative Budget Office

Ohios MSAs showed employment growth in larger areas and declines in smaller areas in recent years Ohio Employment Growth Rate by Metropolitan Statistical Areas (MSAs) 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% Statewide Cincinnati Columbus Cleveland- Elyria Springfield Akron Toledo Canton- Massillon Weirton- Steubenville Youngstown- Warren- Boardman Lima Mansfield 2020-2023 Employment Growth Rate Sources: Ohio Labor Market Information; U.S. Bureau of Labor Statistics Between 2020 and 2023, employment increased in most of Ohio s larger MSAs but decreased in smaller MSAs. In 2023, every Ohio MSA had an increase in employment, except for Weirton-Steubenville. lsc.ohio.gov lsc.ohio.gov Legislative Budget Office

Ohios employment mix was more concentrated in goods production than the national average Ohio and United States Employment by Economic Sector, 2023 25% 22.2% 20.8% 18.8% 18.5% 20% 16.7% 16.7% 16.2% 14.6% 14.6% 13.9% 13.8% 13.2% 15% 10% 5% 0% Goods production Government Trade, transportation, & utilities Education & health services Professional & business services Other services U.S. Ohio Sources: Ohio Labor Market Information; U.S. Bureau of Labor Statistics Goods production includes manufacturing, construction, and natural resource extraction (e.g., mining and logging) companies. Goods production accounted for 16.7% of Ohio s 2023 employment; the corresponding U.S. figure was 13.8%. lsc.ohio.gov lsc.ohio.gov Legislative Budget Office