Ohio Job Market Starts Slow in 2025

Ohio’s January 2025 Jobs Report

In January, Ohio’s unemployment ticked up to 4.6 percent from 4.5 percent in December, while the national unemployment rate declined to 4.0, widening the gap between Ohio and the national average. Ohio’s labor force participation rate was flat at 62.4 percent, while the national average climbed to 64.6. This month’s report shows that while Ohio’s job market struggled in January, the national job market improved. 

Annual revisions to the employment reports show that Ohio ended 2024 with 4.87 million private-sector jobs, a downward adjustment of 34,000 jobs compared to the original December report. This downward revision shows that 2024 was much weaker for job creation than initially thought, with job growth cut by more than half. Furthermore, January reported a loss of 2,800 private-sector jobs as the market softened to start the new year.

Ohio’s job market is trending in the wrong direction, and policymakers should recognize that taxpayer-funded subsidies to large companies are not producing the expected economic benefits. Good economic policy is not massive subsidies to favored companies but broad-based tax relief to Ohio families and workers. The biennium budget should focus on protecting taxpayers by controlling spending, adopting policies that encourage healthy adults to work, and implementing effective education policies to prepare workers for in-demand jobs.