The numbers: Seasonally adjusted data released today by the Ohio Department of Job and Family Services (ODJFS) show Ohio employers added 12,700 jobs over the month, from a revised 5,302,200 in February to 5,314,900 in March 2021.
The numbers from the employer survey:
- Employers in goods producing industries added 5,200 jobs across all industries, in construction (+2,900), manufacturing (+2,200), and mining and logging (+100).
- Private service sector employers added 6,400 jobs. Employers added jobs in educational and health services (+3,600), and professional and business services (+2,200), trade transportation, and utilities (+1,500), financial activities (+900) and information (+200). These exceeded cuts in leisure and hospitality (-1,100), and other services (-900).
- Public sector employers cut 43,900 jobs, with cuts in local (-27,900), state (-15,100), and federal government jobs (-900).
From the separate household survey, Ohio’s unemployment rate dropped to 4.7%, in March. The U.S. unemployment rate was 6.0%. The unemployment rate undercounts the true extent of joblessness, because it only counts those actively seeking work.
Policy Matters researcher Michael Shields gave this statement:
What it means: “Added jobs last month are welcome news, suggesting that the recovery might be picking up after grinding to a halt this winter when Ohio lost jobs in February. Even with this positive news, Ohio has a long way to go. Ohio remains 295,000 jobs short of the number in February 2020, the last month before the March shut-down. And cutting public sector jobs will hinder our rebound.
“While Ohio employers in most industries added jobs in March, state and local governments made drastic cuts to the public sector jobs government has most control over as a direct employer. At a time while Ohioans are struggling to overcome the impact of the coronavirus recession, the services those workers provide are as crucial as the jobs themselves to our recovery.
The survey of households showed that Ohio has lost 86,000 members of the workforce since March of last year. These individuals are not counted among the 272,000 people who are considered to be officially unemployed. Because the official unemployment rate excludes people who are no longer actively seeking work – even if they are discouraged workers who want to work – it is a poor measure of our recovery. Ohio’s labor force never fully recovered from the 2008 recession. Now is the time to invest in critical infrastructure to create jobs and to deploy funds to all Ohioans displaced from work.
Solutions:
“Last recession Ohio policymakers chose to cut taxes instead of investing in shared public services and supports to boost the economy. The result was an extremely slow recovery that lagged the nation’s, with increasing inequality. The tax cut proposed in the House budget bill looks to repeat this strategy. Using relief aid to rebuild and prepare for the future is a better approach.
Use ARPA and the state budget to quickly restore public sector jobs and services: “In March, state and local governments dramatically cut the public sector jobs government can most control. While one month does not make a trend, and initial data are always preliminary, this is a concerning shift. Public sector workers are not only an essential part of a robust job market, they provide vital services Ohioans need. The American Rescue Plan directs $5.6 billion in flexible funding to the state of Ohio plus $5.4 billion more to local governments. Those dollars should be used to gain control of COVID-19 by reducing hospitalizations and deaths; protect Ohioans displaced by the pandemic recession from financial ruin; and build the infrastructure we need to emerge from the crisis stronger than before. Many of the steps Ohio could take to strengthen education and modernize our water, broadband and electrical grid would improve lives and make our economy more fair while restoring public sector jobs now missing from our labor market. The ARPA penalizes lawmakers for frittering it away on wasteful tax cuts to the wealthiest, like the one House Republicans included in their version of the state budget, nearly half of which would go to the top 5%. State lawmakers must reject the proposed tax cuts and use the ARPA to invest in Ohio.
Shore up Ohio unemployment for the long run: “Besides flexible funding for states, the ARPA adds further extensions to both regular unemployment benefits and the $300 federal supplement that recognizes and makes up for inadequate payment levels in state systems; and makes more Ohioans eligible, including those excluded based on low pay. These extended benefits tack on to state benefits once they run out. Ohio lawmakers must preserve access to regular benefits for a full 26 weeks. They must also make permanent expansions to eligibility. Ohioans paid less than $280 per week are excluded from the state system. Policymakers should lower that threshold so that everyone working at least 20 hours per week qualifies.
Last word: “Fiscal stimulus from the federal government gives us an opportunity to invest in an Ohio for everyone, while extended and expanded benefits for displaced Ohio workers give policymakers time to make permanent repairs to the system to include more Ohioans and retain benefits for as long as they are needed. Ohio policymakers must do all they can to help Ohioans recover from the coronavirus recession and emerge stronger than before.”