Crain’s Cleveland Business first published this opinion piece.

Labor Day — a well-earned, three-day weekend that marks the traditional end of summer with extended back-to-school sales and blowout prices at the local used car dealership — offers as good a time as any for an annual check-up on Ohio’s labor market.

The summer of 2023 was the hottest labor market on record, with just 3.3% unemployment. This summer, job openings fell slightly and unemployment rose to 4.5% in July, off last year’s record pace but a good showing by historical standards nonetheless.

Employment rates ebb and flow, rising and falling as industries change and the need for skilled and unskilled workers changes, which means that labor markets must anticipate the foreseeable future rather than dwell on the past. Ohio schools, business leaders, and policymakers should build on the state’s recent labor laurels, not rest on them. They should tailor education and training to help workers acquire the skills and know-how that 21st century employers need and want.

Ohio should start by strengthening community colleges and other programs that help upskill workers. Too much state money flows to four-year colleges that do not equip students with the skills needed to repay student loans. Policymakers should reconsider how Ohio funds post-high school education and look for ways to better support community colleges and other institutions that can prove they help graduates gain employment or promotion. State contributions should be streamlined to give community colleges the same full access as four-year schools to all low-income funding sources, including federal Pell grants.

Improving K-12 computer science training would be another step in the right direction. Unfortunately, Ohio ranks below the national average in computer science course offerings, but two solutions to the below-average ranking are within reach: attract more computer science teachers by paying computer science teachers more; and repeal regulatory restrictions that prevent computer science professionals from teaching computer science classes. Offering more money to teach specialized classes and making it easier for knowledgeable professionals — not just licensed teachers — to teach those classes will help Ohio meet the rising demand for computer science education.

Finally, Ohio should continue to improve its successful Techcred program, which helps businesses and workers by making it easier and cost-effective to upskill labor. Techcred allows employers to identify training needs within the workforce and then work with a training provider to acquire the desired skill sets. The program provides workers with credentials and skill certifications, which raises wages and creates more job opportunities.

Techcred offers training certificates across a broad set of industries from cybersecurity to health care and alloy manufacturing. Expanding Techcred training, working with more employers, and improving program awareness and affordability will help Ohio build on the program’s success and modernize the state’s workforce cost-effectively.

Industries and labor markets are not static. They must adapt to social pressures, available resources, and fluctuating supply and demand trends—or they will wither and die. Ohio’s long tradition as an industrial and manufacturing powerhouse is one worth celebrating, especially on Labor Day, but as the 21st century rapidly unfolds, its businesses, educators, workers and policymakers must look forward and prepare to meet the market needs of tomorrow today.  

Rea S. Hederman Jr. is vice president of policy at The Buckeye Institute.