Ohio's job market showed signs of cooling in April

Columbus, OH – According to the Buckeye Institute's analysis of the latest jobs report from the Ohio Department of Job and Family Services, Ohio's job market showed signs of significant cooling in April 2024. Key indicators revealed an increase in the unemployment rate and a notable deceleration in job growth across multiple sectors.

Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute, commented on the newly released jobs report: “In April, Ohio’s unemployment rate increased from 3.8 percent to 4 percent compared to the national average of 3.9 percent. This continues a trend seen over the past year, with the national average climbing from 3.4 percent to 3.9 percent and Ohio’s climbing from 3.4 percent to 4 percent. This increase in unemployment comes as labor force participation—currently at 61.8 percent—has remained steady over the past year, indicating that fewer people looking for work are finding jobs."

The report highlighted several key points:

Rising Unemployment: Ohio's unemployment rate rose to 4.3% in April, up from 4.1% in March. This uptick reflects a slowing pace in job creation and increasing challenges in the state's labor market.

Slower Job Growth: The state added just 1,200 jobs in April, a sharp decline from the 10,000 jobs added in March. This slowdown is evident across most sectors.

Sector-Specific Declines: Professional and business services saw a reduction of 2,300 jobs, manufacturing lost 1,900 jobs, and construction experienced a decrease of 1,700 jobs. However, the private sector added only 500 jobs in April, and revisions to the March employment numbers show that the private sector added 4,000 fewer jobs than initially reported. As a result, fewer Ohioans are working in the private sector compared to March.

Gains in Leisure and Hospitality: Contrasting the overall trend, the leisure and hospitality sector added 3,800 jobs, likely driven by a rebound in travel and tourism.

Economic Headwinds: The report suggests that Ohio's labor market is losing momentum amid broader economic challenges, paralleling a national trend of slowing job growth.

“Although Ohio’s job market set employment records over the past year, it has now clearly cooled as higher interest rates and inflation take their toll on Ohio’s families and businesses,” Hederman added. “As the state begins to prepare Ohio’s upcoming budget, policymakers should continue efforts to reduce the overall tax burden on Ohioans in a sustainable and responsible manner that also constrains spending, protects taxpayers, and keeps Ohioans working.”

These developments indicate a shift from the previously robust job market conditions in Ohio, raising concerns about future employment trends in the state.

Portions of this article came from a press release issued by the The Buckeye Institute.

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