Following six months of reported job gains, Ohio employers shed 6,500 jobs in May. Both statewide and U.S. unemployment remained unchanged, at a rate of 4.9% in Ohio, 0.7 percentage points higher than the national rate in May. At the same time, inflation ticked up after falling for several consecutive months, rising from 2.3% in April to 2.4% in May.
The takeaway: Ohio saw job losses for the first time this year, signaling that the impacts of federal economic policy may be trickling down to Ohio. The pace of Ohioans entering the labor force began to slow, as unemployment held at 4.9%.
“Unemployment is a chronic problem for Ohio’s working families, and ongoing state and federal policy developments don’t offer an optimistic outlook for timely relief,” said Molly Bryden, researcher with Policy Matters Ohio. “Economists at the Federal Reserve anticipate that the national unemployment rate will rise to 4.5% this year – an unsettling prediction for Ohio, with one of the highest unemployment rates in the U.S. Sweeping cuts to federal funding programs, mass deportation efforts, and an uncertain global trade landscape all have severe implications for Ohio’s economy. While we can’t draw a comprehensive conclusion on the scope of these impacts from May’s losses alone, persistent unemployment levels have been sounding alarm bells for months. Ohio lawmakers must advance policies to bolster an economy that works for working Ohioans, instead of redirecting critical public investments from our communities to pay for tax breaks for Ohio’s wealthiest,” Bryden said.
The numbers: Seasonally adjusted data released today by the Ohio Department of Job and Family Services (ODJFS) show that Ohio lost 6,500 jobs in May, from a downwardly revised 5,712,100 jobs in April to 5,705,600 in May. Monthly numbers are preliminary and subject to revision. May’s job losses mark a departure from consistent growth seen in 2025, slightly offsetting strong monthly gains, with an average of 10,200 jobs added each month this year.
Service providers saw the largest losses in May (-5,200), while goods producers lost 1,100 jobs, with construction jobs falling by 400 and manufacturing by 700. Within the service sector, accommodation and food service employers reported the steepest losses (-6,400), while arts, entertainment and recreation service providers’ gains (+3,000, the largest growth within any industry this month) slightly moderated overall losses in the leisure and hospitality sector (-3,400). Jobs in trade, transportation, and utilities decreased by 5,200. Several industries in the service sector saw modest gains this month, including information (+400), financial activities (+1,300), professional and business services (+200), and educational and health services (+1,400).
Public sector employment fell by 200, driven by job losses in the federal government (-1,100), while local government employment jobs decreased by 300. State government employment increased by 1,200, nearly compensating for job losses in federal and local government.
“The harmful impacts of the Trump administration’s economic policies are starting to emerge in Ohio’s job trends,” said Bryden. “Deep cuts to the federal workforce are beginning to impact Ohioans employed by the federal government, which has further implications for Ohio families who rely on public supports to navigate financial or material hardship. We also saw broad job losses in the transportation, warehousing and utilities industry – a major employer of immigrant workers in Ohio – which could be attributed to the administration’s hostile deportation campaign and efforts to slash federal transportation investments.
“Finally, we anticipate further cross-sectoral losses, as Ohio has been a leading beneficiary of federal climate and clean energy investments now under threat. Federal incentives have generated $10.6 billion in private investment in clean energy manufacturing and infrastructure projects, creating nearly 15,000 jobs. Though federal budget negotiations are ongoing, the Trump administration has already clawed back funds awarded under grant programs designed to support Ohio’s clean energy transition and drive down energy costs, while efforts to rescind remaining funds and eliminate clean energy tax credits are sowing uncertainty around future projects. Under a full repeal of these policies, Ohio stands to lose more than 18,400 jobs by 2030.”
The household survey: The separate household survey showed the number of unemployed Ohioans rose by 3,000, as 2,000 Ohioans entered the labor force to seek a job, with no change in the number of employed Ohioans. The decrease in unemployment doesn’t completely offset the increase in the civilian labor force due to rounding. Ohio’s unemployment rate held at 4.9%, 0.7 percentage points higher than the U.S. rate of 4.2%, also unchanged from April.
“Last month, Ohio had the 5th-highest unemployment rate in the country. More Ohioans are still entering the labor force, though at a notably slower rate than we’ve been observing this year. Ohioans’ confidence in finding a job could be faltering under existing economic conditions, while looking ahead to an uncertain future.”