Moderate job growth in August, Ohio unemployment holds steady

Seasonally adjusted data released today by the Ohio Department of Job and Family Services (ODJFS) show that Ohio gained 9,900 jobs in August, from a downwardly revised 5,720,300 jobs in July to 5,730,200 in August. The state’s unemployment rate remained steady at 5.0% – among the worst rates in the nation. Inflation increased to 2.9%, a 0.2-percentage-point increase from July.

The takeaway: The two surveys responsible for the data behind the monthly numbers show somewhat mixed signs for Ohio’s economy. The employer survey showed moderate job gains in August, helping the state move beyond losses in May (-8,600). So far, the state has added 75,600 jobs this year, setting an on-average job increase of 9,450 jobs per month in 2025.

The household survey shows the unemployment rate was unchanged from July, at 5%. The rate was steady largely due to a drop in the labor force, rather than an improved employment situation. If this change is confirmed in subsequent revisions, and if it continues, Ohioans may face a more precarious economic situation.

Ohio also diverged from the national trend in August. “National employment increased by only 22,000 jobs, continuing the trend of sluggish national growth,” said Heather Smith, researcher for Policy Matters Ohio. “This month’s report is a good reminder that the jobs data are subject to revision and annual benchmarking; diverging monthly reports are not uncommon. It will take several more months of data to determine what these mixed signals mean for Ohio workers,” said Smith.

“Inflation ticked up in August after holding at 2.7% for two consecutive months, with some economists suggesting tariffs are the cause. The Federal Reserve cut interest rates for the first time this year in response to a softening national job market. Lowering interest rates has the potential to spur business development, creating new job opportunities. The Federal Reserve had been keeping rates high to control inflation.”

Sector details: Service providers drove growth in July, adding 7,500 jobs while the public sector added another 1,600. Gains in state government jobs (+1,800) accounted for most public sector growth, with minor losses in federal government jobs (-500). Ohio has 2,100 fewer federal government jobs than in January of this year, before the Trump administration began cutting jobs.

Private educational services saw the largest gains within the service sector, adding 2,900 jobs in August as students return to school.  Health care and social assistance jobs fell (-1,000) after being downwardly revised from July initial estimates (-1,000). Accommodation and food service jobs decreased by 1,200, the largest loss in the past month.  

Goods producers added 800 jobs after being upwardly revised from July’s initial estimates (+1,000). Growth was driven by durable goods manufacturing (+900), with minor losses in construction (-100) moderating those gains.

The household survey: The separate household survey showed the number of unemployed Ohioans decreased by 1,000, as the number of employed Ohioans fell by 7,000 and the labor force by 8,000 – even as the working age population increased by 5,000. As a result, labor force participation ticked down to 62.5%, a 0.1-percentage-point decrease from July. Ohio’s unemployment rate remained at 5.0% between July and August, after holding steady at 4.9% from May through June. The U.S. unemployment rate was 4.3%, a 0.1-percentage-point increase from July, still 0.7 percentage points lower than Ohio’s.

“Uncertainty is a challenge for workers, employers, and entrepreneurs,” said Smith. “It makes it harder to predict if investments will pay off, whether in a new line of work, new skills, additional employees, or a new business. The coming months will show whether the mixed messages are the start of a downward trend or a blip in the data.”