Ohio employers added 7,500 jobs in March, following strong gains in April. Both statewide and U.S. unemployment increased by 0.1 percentage points in March, though Ohioans are feeling the effects of a tight job market more acutely, with an unemployment rate of 4.8%: 0.6 percentage points higher than the national rate of 4.2%, the seventh-highest in the nation. The inflation rate fell for a second consecutive month, down 0.4 percentage points from February’s rate to 2.4% in March.
The takeaway: Ohio’s labor market has shown surprising resilience despite the turbulent federal economic policy landscape. Inflation continues to cool: Another good sign for Ohio’s working families. However, substantial job gains over the past several months are still not enough to offer relief to the growing number of unemployed Ohioans.
“March’s trends reinforce last month’s concerns: It would be negligent to celebrate monthly job growth while working Ohioans face increasing employment barriers and economic pressures,” said Molly Bryden, researcher with Policy Matters Ohio. “In February, the number of unemployed Ohioans exceeded job openings reported by a separate survey administered by the U.S. Bureau of Labor Statistics, joining 13 other states facing increasingly tight job markets, according to a Bloomberg analysis. This is an alarming finding, requiring comprehensive policy supports targeted to Ohioans’ enduring financial hardship.”
The numbers: Seasonally adjusted data released today by the Ohio Department of Job and Family Services (ODJFS) show that Ohio employers added 7,500 jobs in March, from an upwardly revised 5,685,700 jobs in February to 5,693,200 in March. Monthly numbers are preliminary and subject to revision. Moderate growth in March follows significant gains made the previous month revealed by February’s revision, showing Ohio employers added 27,700 jobs (+4,600, compared to initial estimates for February’s job growth).
Service providers added 4,300 jobs in March. Leisure and hospitality sector jobs drove growth among service sectors, adding 5,700 jobs, while the professional and business services sector shed 5,000 jobs. Goods producers added 3,000 jobs, driven by growth in construction jobs (+2,400). The public sector made small gains, as both state and local government jobs increased by 200 each, while federal employment fell by 200.
The household survey: The separate household survey showed the number of unemployed Ohioans increased by 6,000, as 17,000 Ohioans entered the labor force to seek a job, and the number of employed Ohioans rose by 11,000. Ohio’s unemployment rate increased by 0.1 percentage points to 4.8% in March, compared to the U.S. rate of 4.2%. Ohio’s increase kept pace with the nationwide increase in unemployment again this month, though the stark gap between Ohio’s and the U.S. unemployment rate remains unchanged.
The figure below shows Ohio and U.S. unemployment trends over the past five years. Ohio’s unemployment rate is on par with that of March 2020, the month before unemployment rose to unprecedented levels in the height of economic disruptions caused by COVID-19 pandemic. Though Ohio’s jobs have since recovered to pre-pandemic levels, corresponding with falling unemployment, Ohio has not seen a decrease in unemployment in nearly two years.
“Ohio lawmakers should be feeling the pressure to reverse the persistent rise in unemployment, especially as the Trump administration continues to target the federal social service landscape for sweeping budget cuts and mass layoffs. Instead, it appears that Ohio’s elected officials are in lockstep with the federal government, attempting to shift investments from critical public services, like public education or Medicaid, to garner favor with Ohio’s wealthiest stakeholders – like the billionaire owners of the Browns, prospective beneficiaries of $600 million in state-issued bonds to build a new stadium proposed by the House.”
The number of Ohioans either employed or actively seeking employment increased by an average of 12,200 each month over the past year, exceeding the average monthly increase in the working age population by 3,000 – meaning the consistent growth in Ohio’s labor force can’t be attributed to younger Ohioans alone. “Ohio’s labor force saw another surge of new jobseekers in March,” said Bryden. “While labor force growth generally signals workers’ confidence in their ability to secure a good job with a family-sustaining wage, consistent increases in unemployment warrants a closer look at this trend. It’s possible older Ohioans are staying in the workforce longer due to insufficient lifetime earnings, which has implications for younger workers’ employment options, especially as tariffs imposed by the Trump administration exacerbate stock market volatility at the expense of Ohioans’ retirement funds. By contrast, economic uncertainty and persistent inflation may be motivators for some newcomers in the workforce. Regardless of the cause, Ohio lawmakers must respond to growing insecurity among Ohio’s labor force by putting their needs first.”